Japan’s Idemitsu to produce HEFA-based SAF by 2028-29

Market: Biofuels
02/08/24

Japanese refiner Idemitsu plans to begin commercial production of sustainable aviation fuel (SAF) at its Tokuyama plant, in western prefecture Yamaguchi, by the April 2028-March 2029 fiscal year.

Idemitsu aims to use the hydro-processed esters and fatty acids (HEFA)-method to generate 250,000 kilolitre (kl)/yr of SAF. The HEFA method involves hydrogeneration of feedstocks such as used cooking oil (UCO) as well as plant and animal oil residue and oil plants like pongamia pinnata in the future.

The firm will proceed to begin initial engineering within this month, as it recently completed a feasibility study for the project. Idemitsu did not disclose potential investment values.

Idemitsu is considering procuring 270,000-280,000 t/yr of feedstocks from Japan and overseas markets to produce the HEFA-based SAF, and will supply the produced SAF mainly to domestic users.

Idemitsu is considering building a new HEFA-based SAF production facility at its Tokuyama complex to fulfil its aim of generating 250,000 kl/yr of HEFA-based SAF. The firm is also mulling converting a former refining unit at the same complex into a HEFA-based SAF unit to meet the same aim. Idemitsu in 2014 scrapped the refining unit and permanently closed its former 120,000 b/d Tokuyama refinery, to turn the Tokuyama complex into a petrochemical production site.

Byproduct naphtha from manufacturing the 250,000 kl/yr of HEFA-based SAF may be used to produce ethylene at Idemitsu's 623,000 t/yr Tokuyama cracker. But the company is unsure how much byproduct naphtha can be generated.

Other SAF plans

Idemitsu also has plans to produce 100,000 kl/yr of SAF through the alcohol-to-jet (ATJ) production method, which involves the use of bioethanol as a feedstock, at its Chiba plant by 2028-29. The refiner also aims to purchase 150,000 kl/yr of SAF from overseas projects, including Australia, by 2030, to achieve the goal of supplying 500,000 kl/yr of SAF to domestic consumers.

Japan's SAF demand is expected to increase as the government plans to mandate that SAF must make up at least 10pc of total jet fuel consumption volume by 2030. Idemitsu considers feedstock procurement to be one of the major challenges in building the SAF supply chain.

Japan's SAF supplier, airplane-related firms and distributors – including refiner Eneos, trading house Itochu, domestic airline company Japan Airline, airport operator Narita International Airport and distribution company Nippon Express – and financial firm Mizuho as well as its research and consulting subsidiary Mizuho Research and Technologies on 2 August announced an agreement to conduct demonstrations of a system that will match sellers and buyers of emission reduction certificates. The platform is designed to facilitate the trading of such certificates between SAF suppliers and SAF users, in an effort to promote SAF consumption.

By Nanami Oki

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