Japan will begin a three year study on their allowance of 10 percent ethanol in their fuel. Currently, ths country only allows up to three percent of ethanol to help cut its greenhouse gas emissions.

Japan’s Ministry of Environment said they have given approval for two groups to study E10 issues. Osaka prefectural government will focus on ethanol made from discarded construction materials, while the Tokachi area in Hokkaido, northern Japan, will study E10 with ethanol made from farm waste.

Even if E10 were allowed, local feedstocks are at present too limited to make ethanol. Last year, Japan produced only 90 kilolitres of biomass ethanol at government-backed test plants. Also, no vehicle suitable for E10 is available in Japan although Japanese car makers sell such vehicles overseas.