Sumitomo Corporation's Study on Bioethanol Exports from Thailand to Japan Selected for METI Grant for Future-Oriented Projects in the Global South (FY2024 Supplementary Budget)

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) announces that on April 1, 2026, its study on bioethanol exports from the Kingdom of Thailand to Japan was selected for a Ministry of Economy, Trade and Industry (METI) "Grant for Future-Oriented Co-Creation Projects in the Global South (Small-Scale Demonstration and Feasibility Study Projects)" under the FY2024 supplementary budget.

In recent years, procurement risks – including dependence on energy supplies from the Middle East – have become a growing concern. From the perspective of energy security, the diversification of fuel sources and establishment of stable supply systems are becoming increasingly important. Bioethanol, a low-carbon fuel derived from renewable resources, contributes to both energy security and decarbonization. In many countries, policy-driven initiatives such as blending bioethanol with gasoline are accelerating this trend.

At the same time, global bioethanol supply remains highly concentrated in a small number of countries and regions, posing challenges for supply stability. In light of these developments, there is a growing need from the perspective of economic security in the energy sector to establish new sources of supply, particularly in Asia, to enhance supply resilience.

Against this backdrop, Thailand, with its stable production base and export capacity, is expected to play a significant role as a promising supply source for Japan.

The selected study examines the feasibility of establishing a stable supply of bioethanol from Thailand to Japan, in anticipation of growing import demand driven by Japan's energy policies, including gasoline blending and the introduction of SAF (Sustainable Aviation Fuel). Specifically, the study will assess the key requirements for exporting bioethanol, including local infrastructure, relevant legal and regulatory frameworks, logistics and supply chain challenges, and overall business viability.

Following its selection for this subsidy program, Sumitomo Corporation will promote initiatives under a public-private partnership framework, drawing on its expertise and network to contribute to the stable supply of energy in Japan and the realization of a decarbonized society.

*FY2024 Supplementary Budget: Grant for Future-Oriented Co-Creation Projects in the Global South (Small-Scale Demonstration and Feasibility Study Projects) – Special Website
https://gs-hojo-web-fspoc.jp/index.html