Japan’s Revo, Eneos to collect more UCO: Clarification

Market: Biofuels, Oil products
04/04/24

Clarifies UCO collection details and adds information about Revo's Kyoto and Aichi plants in second paragraph

Japanese biodiesel producer Revo International and refiner Eneos plan to boost used cooking oil (UCO) collection to produce biofuels.

Revo International has started collecting UCO from 365 domestic restaurants under restaurant operator SRS since 1 April, amounting to 480,000 litres/yr. The UCO will be processed to make biofuels like biodiesel and sustainable aviation fuel (SAF) at Revo International's Kyoto plant, as well as its planned Aichi plant which it expects to begin operations by early 2025. The Kyoto plant can produce 30,000 l/d of biodiesel, while the Aichi plant is planned to produce 30,000 l/d of biodiesel and an undisclosed amount of SAF. Revo International is supposed to bring on line a plant in Osaka that can produce 30,000 kilolitres/yr (517 b/d) of SAF from domestic UCO in September.

Eneos will collect 420,000 l/yr of UCO from 359 domestic restaurants under restaurant operator Monogatari. It will use the UCO at its SAF plant with a planned output capacity of 400,000 kl/yr in western Japan's Wakayama prefecture. It expects the plant to begin operations in the April 2026-March 2027 fiscal year.

Japan's economy, trade and industry ministry is encouraging domestic SAF suppliers to invest in plants to ensure stable deliveries at affordable prices. The ministry plans to introduce a SAF mandate requiring suppliers to produce at least 10pc SAF of their total output by 2030 in line with the country's target of 10pc (or 1.71mn kl/yr) SAF use in domestic jet fuel consumption by then.

Japanese companies have accelerated SAF supply efforts. Trading house Mitsui and refiner Cosmo Oil have agreed to work together to supply SAF by the 2027-28 fiscal year. Refiner Fuji Oil has been conducting a basic design study for a 180,000 kl/yr SAF plant since May 2023, targeting for it to start up during 2027-28.

Limited domestic availability of UCO could impede SAF production, prompting Japanese firms to import UCO. But fierce international competition for UCO may pressure domestic SAF production owing to feedstock cost volatility.

By Nanami Oki

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