The Osaka Prefecture may be the first producers of Bioethanol coming from wood. The Japanese Environment Ministry has recently launched a project to mass produce eco-friendly Bioethanol fuel from wood chips to power 40,000 motor vehicles in the Osaka area.

The blend however, is an E3 blend or 3 percent Bioethanol mixed with 97 percent gasoline. At an estimated production of 47,000 thousand liters per year, Japanese officials are confident that the fuel blend will gain acceptance in the market. To aid in the use of the E3 blend, 100 special gas stations will be built in the Kanto and Kansai regions, and corporations (such as biofuel businesses and automakers) will be encouraged and assisted through various incentives.

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