In a significant boost to Japan's sustainable aviation fuel (SAF) ambitions, LanzaJet, a pioneering sustainable fuels technology company, announced that Cosmo Oil Co. Ltd. has been awarded a crucial FY2024 subsidy from Japan's Ministry of Economy, Trade and Industry (METI). This funding will propel a project developed in collaboration with Mitsui & Co. centered on the deployment of LanzaJet's cutting-edge alcohol-to-jet (ATJ) technology.

The METI subsidy underscores the Japanese government's commitment to diversifying its energy sources and achieving its ambitious climate goals. With the global aviation industry facing increasing pressure to decarbonize, the development of a robust domestic SAF supply chain is paramount.

"Today's announcement signifies an important milestone for SAF production and scaling of the industry in Japan," stated Jimmy Samartzis, Chief Executive Officer of LanzaJet. "LanzaJet's proprietary alcohol-to-jet technology is helping governments worldwide as well as the global aviation industry meet ambitious demands for sustainable growth and alternative fuels goals. In support of Cosmo Oil, Mitsui & Co., and the Japanese government, we look forward to accelerating the development of domestic SAF and advancing an energy-diverse aviation sector."

The global demand for SAF is poised for exponential growth, driven by stringent environmental regulations and the aviation industry's commitment to net-zero emissions. Japan, recognizing the urgency of this transition, has set a target to replace 10% of petroleum-based jet fuels with sustainable alternatives by 2030. Cosmo Oil, leveraging LanzaJet's innovative ethanol-to-SAF technology, aims to play a crucial role in achieving this target.

The project will combine Cosmo Oil's extensive expertise in plant operations, fuel quality control, and logistics with Mitsui's robust capabilities in ethanol procurement. This strategic partnership will enable the establishment of a large-scale SAF production facility at Cosmo Oil's Sakaide Logistics Base, creating new business opportunities within Japan's burgeoning biofuels sector.

Upon completion, slated for 2029, the facility is projected to produce approximately 150,000 kiloliters of SAF and 17,000 kiloliters of renewable diesel annually. This significant production capacity will contribute substantially to meeting Japan's growing SAF demand and reducing the aviation sector's carbon footprint.

LanzaJet's ATJ technology is a game-changer in the SAF landscape. It enables the production of SAF from a variety of sustainable ethanol sources, including agricultural residues and waste gases. This feedstock flexibility ensures a more resilient and sustainable supply chain, reducing reliance on traditional fossil fuels.

The collaboration between LanzaJet, Cosmo Oil, and Mitsui, supported by the Japanese government, exemplifies a concerted effort to drive the transition towards a cleaner and more sustainable aviation industry.