Japan

Though Blue Fuel™ production in Japan is limited to an 80,000 ton/year demonstration plant in Niigata, completed in 2008 by a consortium (Japan DME Ltd., or JDME) of nine companies, Japan is the Asian leader in terms of Blue Fuel™ R&D and market development.

The Niigata plant provides further opportunity to extend vehicle road testing, establish fuel standards, distribution logistics, and support measures, (such as changes to the taxation system) and promote awareness of Blue Fuel™ among the public. Extensive road testing has already been done in Japan, and given the positive results obtained thus far, leading diesel engine manufacturers, including Nissan Diesel, Isuzu Diesel, and Hino Motors have indicated that production of Blue Fuel™ vehicles (featuring diesels with modified fuel supply and injection systems) will proceed once final tests are completed, standards are established—and an ongoing supply of Blue Fuel™ from offshore plants is established.

Toward this end, JDME is planning to construct a large-scale DME plant (1200 KT/A) in Papua New Guinea, taking advantage of inexpensive stranded natural gas. Production in PNG is slated to start in 2010-11. Other locations targeted by JDME for Blue Fuel™ production from natural gas include Indonesia, Western Australia, and the Middle East. Japan has also expressed an interest is purchasing Blue Fuel™ from China, which as noted above, currently has excess production capacity.