Tokyo, Japan - 7-8 May 2014: Biofuel is perceived to be one of the options to address the energy security issue in the Asian region as its expanded use will result in oil demand reduction and diversification of liquid fuels' import sources. Moreover, biofuel production provides an additional way to increase rural income.

In this connection, ERIA has established a Working Group to study and estimate the potentials of and promote the use of biofuels in Asia. The 2nd meeting of the Working Group for the study was held in Tokyo on 7-8 May wherein preliminary results were presented and discussed. According to the study, the future biofuel demands of ASEAN and East Asia will reach nearly 36 million toe of bioethanol and 37 million toe of biodiesel by 2035. The study also shows that the bio-ethanol demand will be led by Indonesia starting in the early 2020s, followed by China, India, Thailand, and the Philippines. Similarly, Indonesia will lead the demand for bio-diesel after the early 2020s, followed by China, Thailand, India, and Malaysia.

Composed of policymakers from Indonesia, Malaysia, the Philippines and Thailand as well as IEEJ researchers led by Dr. Kaoru Yamaguchi, the Working Group also discussed ways to enhance the biofuel trade in the region. Mr. Shigeru Kimura, Special Advisor to the ERIA Executive Director on Energy Affairs, emphasized that second generation-biofuel technologies will be required to meet additional future demand for biofuels. Dr. Venkatachalam Anbumozhi, Energy Economist of ERIA, meanwhile, commented that the core strategy for the region is to enhance the policy environment at the national level in order to improve agricultural productivity and avoid competing demands for land and to strengthen regional cooperation in biofuel trade for energy security. The Working Group is currently finalizing its report for publication in July this year.