Eric Watkins
Senior Correspondent

LOS ANGELES, July 3 -- Brazilian ethanol producer Copersucar, eyeing increased export potential and growing competition, has signed an agreement to supply 200 million l./year of ethanol exports to Japan Biofuels Supply LLP (JBSL).

Copersucar's ethanol will be turned into ethyl tertiary butyl ether and will serve as a fuel additive in Japan, which allows fuel retailers to mix a 3% ethanol blend in nationally sold gasoline.

JBSL, which began marketing biogasoline in April 2007, is comprised of Idemitsu Kosan Co., Tonen General Sekiyu KK, Taiyo Oil Co., Fuji Oil Co., Cosmo Oil Co., Kyokuto Petroleum Industries Ltd., Kyushu Oil Co., Showa Shell Sekiyu KK, Nippon Oil Corp., and Japan Energy Corp.

JBSL plans to import 360,000 kl. of bioethanol from fiscal 2010. If Japan expands its blending of ethanol or ethyl tertiary butyl ether in its national gasoline as is expected in the coming years, Brazilian ethanol exports, which reached nearly 3.1 billion l. from the 2007-08 season, could nearly double.