To revolutionize sustainable fuel production in Japan, Marubeni Corporation, Japan Airlines (JAL), Mitsubishi Chemical Corporation, Chugoku Lumber Co., Ltd., Boeing Japan KK, and Obayashi Corporation have announced a joint memorandum of understanding (MoU) for a pre-feasibility study of SAF. The focus of this study is the commercialization of SAF, bio-naphtha, and renewable diesel derived from domestic forest residues.

This initiative addresses the growing urgency to reduce carbon dioxide emissions within the aviation and chemical industries. Japan, possessing abundant forest resources, is poised to leverage thinning materials and wood processing residues as sustainable raw materials. The increasing adoption of wood in large-scale construction further amplifies the potential for utilizing these residues.

The aviation industry, grappling with the imperative to decarbonize, views SAF as a critical solution. However, a stable domestic supply chain, encompassing raw material sourcing, production, and utilization, is essential to meet the anticipated surge in SAF demand from 2030 onwards. Similarly, the chemical industry is actively pursuing greenhouse gas emission reduction strategies, transitioning to sustainable feedstocks like biochemical products from biomass and chemically recycled plastics to achieve carbon neutrality and a circular economy.

The pre-feasibility study will explore the application of Licella's advanced manufacturing technology to produce a bio-intermediate (renewable oil) from wood residues. This bio-intermediate will then be refined into SAF, bio-naphtha, and renewable diesel, establishing a domestic supply chain based on local production and consumption. The study will meticulously assess the economic viability of this business model, including raw material supply and processing systems, manufacturing processes, product logistics, and CO2 emission reduction effectiveness.

The consortium aims to complete the pre-feasibility study by December 2025. The ultimate goal is to achieve commercialization around 2030, contingent on the study's progress. This ambitious project signifies a significant step towards a sustainable future for both the aviation and chemical industries in Japan.

The collaboration brings together the expertise of diverse industry leaders: Marubeni's global trading and project development capabilities, JAL's aviation operational experience, Mitsubishi Chemical's chemical manufacturing prowess, Chugoku Lumber's forestry and wood processing expertise, Boeing's aviation technology leadership, and Obayashi's construction and sustainable infrastructure development expertise.

This initiative underscores Japan's commitment to developing innovative and sustainable solutions that contribute to global efforts in combating climate change. By harnessing domestic forest resources and leveraging advanced technologies, the consortium aims to establish a robust and sustainable fuel supply chain, paving the way for a greener future.