ENEOS and Nippon Paper Advance Second-Generation Bioethanol in Japan

ENEOS and Nippon Paper Form Bioethanol Partnership

On September 3, ENEOS Corporation and Nippon Paper Industries Co Ltd announced a comprehensive partnership to promote the widespread adoption of second-generation bioethanol in Japan. The collaboration is focused on establishing production technology, securing a stable supply of biomass feedstock, and supporting broader market adoption. As part of the agreement, ENEOS will construct a pilot plant at Nippon Paper’s Fuji Mill. Nippon Paper will supply the biomass feedstock and operate the demonstration facility. The initiative is intended to create a practical production foundation for bioethanol made from non-edible resources while supporting Japan’s longer-term transition toward lower-carbon transportation fuels.

Pilot Plant Planned for Fiscal 2027

ENEOS plans to begin operating the pilot plant during fiscal year 2027, making the facility an important step toward demonstrating the production process at an operational site. The project will use Nippon Paper’s Fuji Mill as the location for the demonstration, while Nippon Paper will handle feedstock supply and plant operations. The partnership combines ENEOS’s efforts to establish bioethanol production technology with Nippon Paper’s access to biomass resources and mill infrastructure. By developing the process through a pilot-scale facility, the companies aim to evaluate production technology and build the foundation needed for a stable supply chain before wider deployment across Japan.

Non-Edible Feedstocks Differentiate the Technology

Second-generation bioethanol differs from first-generation bioethanol because it is produced from non-edible feedstocks rather than materials containing sugars or starch that can also be used for food. The ENEOS-Nippon Paper project will focus on resources such as woody biomass and waste paper, creating an opportunity to utilize materials that are not conventional food-based feedstocks. Establishing technology capable of processing these resources is a central objective of the partnership. The companies also intend to develop a reliable raw-material supply structure alongside the production process, which could help address one of the key requirements for expanding the use of non-food-based bioethanol in Japan.

Japan Targets Low-Carbon Gasoline by Fiscal 2030

The partnership comes as Japan prepares for the planned supply of low-carbon gasoline containing up to 10% bioethanol by fiscal year 2030. This policy direction creates a future market requirement for bioethanol production and supply capabilities within the country. ENEOS and Nippon Paper aim to establish the necessary production technology and raw-material sourcing capabilities ahead of that target. Their collaboration is therefore focused not only on demonstrating a manufacturing process but also on building the supply foundation required for broader adoption. The companies expect the initiative to contribute to the development and eventual expansion of domestically supported bioethanol use as Japan pursues lower-carbon fuel options.

Frequently Asked Questions

What are ENEOS and Nippon Paper developing through their new partnership?
ENEOS and Nippon Paper are developing production technology for second-generation bioethanol using non-edible resources such as woody biomass and waste paper. ENEOS will construct a pilot plant at Nippon Paper’s Fuji Mill, while Nippon Paper will supply biomass feedstock and operate the demonstration facility. Operations are scheduled to begin during fiscal year 2027. The companies also aim to establish a stable raw-material supply system and support wider adoption in Japan. The initiative aligns with Japan’s plan to supply low-carbon gasoline containing up to 10% bioethanol by fiscal year 2030.