Tuesday, July 23, 2024
HomeAll NewsSustainable Aviation Fuel (SAF)Japanese biodiesel producer Revo International and refiner Eneos plan to boost UCO...

Japanese biodiesel producer Revo International and refiner Eneos plan to boost UCO collection to produce biofuels

Revo International mulls to gather 480,000 litres per year of UCO from 365 local restaurants affiliated with restaurant operator SRS. The UCO will undergo processing to produce biofuels such as biodiesel and sustainable aviation fuel (SAF) at Revo International’s facilities starting from April 1. Although the Japanese biodiesel producer did not specify the exact location for utilizing the UCO, it plans to commence operations at a plant capable of producing 30,000 kilolitres per year (517 barrels per day) of SAF from domestic UCO in September.

Eneos will collect 420,000 litres per year of UCO from 359 local restaurants affiliated with restaurant operator Monogatari. It will utilize the UCO at its SAF plant, which is expected to have an output capacity of 400,000 kilolitres per year in western Japan’s Wakayama prefecture. The company anticipates the plant to become operational during the fiscal year spanning April 2026 to March 2027.

Japan’s Ministry of Economy, Trade, and Industry is actively encouraging domestic SAF suppliers to invest in plants to ensure consistent deliveries at competitive prices. The ministry is planning to implement a SAF mandate, requiring suppliers to produce a minimum of 10% SAF of their total output by 2030, in alignment with the country’s objective of achieving 10% (or 1.71 million kilolitres per year) SAF usage in domestic jet fuel consumption by that time.

Japanese companies are intensifying their efforts to supply SAF. Trading house Mitsui and refiner Cosmo Oil have formed a partnership to supply SAF by the fiscal year 2027-28. Additionally, refiner Fuji Oil has been conducting a basic design study for a 180,000 kilolitres per year SAF plant since May 2023, with plans for it to commence operations during the fiscal year 2027-28.

The limited availability of domestic UCO could hinder SAF production, prompting Japanese firms to consider importing UCO. However, fierce international competition for UCO may exert pressure on domestic SAF production due to fluctuations in feedstock costs.



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