ENEOS Corporation and Mitsubishi Corporation have announced a joint Front End Engineering Design (FEED) study for a large-scale Sustainable Aviation Fuel (SAF) production facility at ENEOS's Wakayama Refinery.

The proposed facility, contingent on the FEED results, aims to produce approximately 300,000 tons (400,000 kiloliters) of SAF annually starting from fiscal year 2028. In addition to SAF, the facility is expected to generate bio-naphtha and bio-diesel fuel as byproducts. The feedstock for this ambitious project will consist of used cooking oil, animal fat, and other waste and byproduct materials.

This partnership combines the strengths of both companies. ENEOS brings its extensive sales network, refining and manufacturing technologies, and expertise in feedstock procurement. Mitsubishi Corporation contributes its global and domestic feedstock procurement capabilities. By leveraging their respective expertise, the two companies aim to accelerate the development of large-scale SAF production in Japan.

The announcement follows ENEOS's selection for the Ministry of Economy, Trade and Industry’s (METI) “Support Project for Sustainable Aviation Fuel (SAF) Production and Supply Chain Development.” This project supports initiatives aimed at expanding SAF production and supply. ENEOS will utilize the subsidies provided by METI to facilitate the introduction of the large-scale SAF production facility and the necessary modifications to existing infrastructure at the Wakayama Plant.

ENEOS has been exploring the feasibility of SAF production at the Wakayama Refinery since 2022. This collaboration with Mitsubishi Corporation represents a significant advancement in those efforts, moving from feasibility studies to the crucial FEED stage. The FEED study will provide detailed engineering and design specifications, cost estimations, and project timelines, paving the way for the construction and operation of the facility.

The initiative aligns with ENEOS Group’s long-term vision of achieving both a stable energy and materials supply and the realization of a carbon-neutral society. The company is committed to building an integrated SAF system, encompassing raw material procurement, in-house manufacturing, and sales. By securing METI subsidies, ENEOS aims to establish a highly competitive mass production system and a robust SAF supply chain in Japan.

The development of a domestic SAF industry is crucial for Japan to meet its decarbonization targets in the aviation sector. SAF offers a significant reduction in greenhouse gas emissions compared to conventional jet fuel, making it a key component in the industry's efforts to reduce its environmental footprint. The partnership between ENEOS and Mitsubishi Corporation, along with the support from METI, represents a significant investment in the future of sustainable aviation in Japan.