Environment Japanese joint venture to produce bio jet fuel

[thomas]

Nippon Paper, Sumitomo Corp. and others intend to set up a joint venture in 2024 to manufacture and sell bioethanol. Bioethanol from wood is used for sustainable aviation fuel (SAF) in Japan, which has lagged in developing alternatives to petroleum for powering planes. Sustainable aviation fuels, made from waste cooking oil, plant matter and other materials, emit 70% to 90% less carbon dioxide than standard jet fuel.

The primary raw material will be wood cut from Nippon Paper's forests. The company owns roughly 90,000 hectares of forests in Japan, second only to rival papermaker Oji Holdings. Nippon Paper plans to increase the sustainability of its supply by planting seedlings that grow 50% faster and absorb 50% more carbon dioxide than conventional trees in logging areas. [...] The venture will seek to lower SAF production costs, one of the barriers to the wider adoption of plant-based jet fuels. Ordinary jet fuel is priced at about 100 yen per litre, while SAF costs several hundred to several thousand yen. Japanese companies have tried using imported corn and other crops to make ethanol for SAF but struggled to secure stable supplies of the feedstocks. Critics say converting crops like corn and sugarcane to fuel can contribute to food insecurity. Building a supply chain for waste cooking oil also has proved difficult.

Regulators are pushing airlines toward greener fuels. EU lawmakers have approved a requirement that SAF accounts for 85% of all aviation fuels at airports within the bloc by 2050. All Nippon Airways aims to replace at least 10% of its fuel with SAF in fiscal 2030, with rival Japan Airlines targeting 10%.


Paywall alert:

Jet fuel made from wood heads toward production in Japan

Nippon Paper to lead bioethanol venture, aiming to start output in 2027

asia.nikkei.com