Japan’s oil industry mixes ETBE, made by combining ethanol and isobutylene, directly with gasoline because it does not require distribution network modifications that mixing straight ethanol with gasoline would require.

Cosan has an annual production capacity of 2.3 billion liters of ethanol in Brazil. Around 20% of the production is exported to Europe, the US and Asian countries.

The announcement follows Brazilian ethanol group Copersucar’s deal with Japan Biofuels Supply LLP (JBSL) a year ago, for exports of up to 200 million liters per year of ethanol.