As part of its efforts to help curb global warming and dependence on foreign oil imports, Japan is planning to adopt a new policy requiring all new cars to run on 10% ethanol and 90% gasoline by the year 2010. The country’s Environment Ministry is already studying the cost and implementation. Japan is one of the top contributors to air pollution. The country also imports almost all of its oil and is ardently looking for alternative fuel sources.

Japan aims to have all cars on its roads running on flexible-fuel technology by 2030. As of now, the number of cars running on ethanol-gasoline mix is still insignificant, although Japan allows ethanol mixtures of up to 3%. To help start up the market, the environment ministry will start large-scale production of ethanol fuel in the sugarcane-rich island of Miyako. The plan is to use the ethanol for the island’s 20,000 cars over the course of three years.

However, there are some hindrances that have to be hurdled. First, ethanol fuel is more expensive than gasoline. Second, the planned 10% ethanol mix does not comply with the standards met by flex-fuel vehicles from U.S. automakers, which can run on 85% ethanol blends.