Japanese firms to secure domestic UCO for SAF output

Japanese firms have strengthened their efforts to secure domestic used cooking oil (UCO) to produce sustainable aviation fuel (SAF) in the country.

Engineering firm JGC, biodiesel producer Revo International and SAF joint venture Saffaire Sky Energy on 5 April have agreed with domestic restaurant chain Food & Life to supply 900,000 litre/yr (5.6 bl/yr) of UCO for SAF output. Around 750,000l of SAF will be produced from the 900,000l of UCO, according to JGC.

The SAF project is led by Saffaire Sky Energy, with JGC and domestic refiner Cosmo Oil each holding 48pc in the joint venture and Revo with 4pc. The joint venture plans to produce 30,000 kilolitre/yr of SAF at Cosmo's Sakai plant in the Osaka prefecture, with the start-up targeted in 2024-25.

JGC and Revo are separately working with Japan's Kansai Airports group on supplying domestic SAF, collecting UCO from restaurants at Kansai's three airports — Kansai International Airport, Osaka International Airport and New Kansai International Airport — as well as from in-flight meal factories and airport hotels. The UCO will also be used for SAF production at the Sakai.

Japanese firms currently export their UCO mainly to Europe as it can be sold at higher prices as a biofuel feedstock, a market participant said. Around 120,000t of domestic UCO was shipped from Japan during April 2021-March 2022, according to the country's federation of UCO recycling co-operatives UCO Japan.

Japanese firms working on domestic SAF production are urging the country's trade and industry ministry to create a system to secure domestic UCO for domestic use, as they consider UCO procurement key to producing enough SAF output to meet domestic demand.

Japan's land and transport ministry predicts Japan's SAF demand will be 1.7mn kl in 2030, comprising 880,000kl for domestic flights and 830,000kl for international flights. Japan is targeting 10pc use of SAF by domestic airlines by 2030.

By Maiko Nakashima