Japanese refiners aims to double use of bioethanol

TOKYO, March 17 (Reuters) - The Japanese oil industry will aim to more than double the use of bioethanol to mix with gasoline to realise the lion's share of the government's goal to use the environment-friendly fuel in automobiles, a top oil industry executive said on Monday.

Cooperating with the government's request, Japanese refiners will target to replace 500,000 kilolitres (3.15 million barrels) a year in crude oil equivalent of fuels with biofuels by the business year ending in March 2013, Fumiaki Watari, chairman of the Petroleum Association of Japan told reporters.

Japan, the world's fifth-biggest emitter of greenhouse gasses, has a target to replace 500,000 kl in crude oil equivalent of auto use of energy with biofuels in fiscal 2010/11.

Previously, the oil industry had aimed to replace only 210,000 kl of crude equivalent with biofuels.

Watari, who also serves as the chairman of Japan's biggest refiner Nippon Oil Corp 5001.T, said the industry would use only ETBE, made by compounding ethanol and isobutane, to blend with gasoline.

He also requested that Japan take a leadership in securing enough biofuels and making a financial contribution to help obtain the costly biofuel. (Reporting by Osamu Tsukimori)