Japan launches study on commercialization of SAF for forest residues

Marubeni Corporation recently announced that it has signed a Memorandum of Understanding (MOU) with Japan Airlines, Mitsubishi Chemical Corporation, China Timber Corporation, The Boeing Company, and the Ohayashi Group to initiate a pre-commercialization pre-feasibility study for the manufacture and sale of Sustainable Aviation Fuel (SAF), Bio-Naphtha and Renewable Diesel using forest residues in Japan.

The study plans to use Cat-HTR™ technology developed by Australian technology company Licella, an advanced hydrothermal liquefaction platform that converts wood residues into bio-intermediate oil. The bio-oil will then be reprocessed and refined for the production of SAF, bio-naphtha and renewable diesel, thereby establishing a local green fuel supply chain in Japan and realizing the “local production, local sales” model.

The study will evaluate the economic feasibility of the project, analyzing the feedstock supply and processing system, production process, product logistics and carbon reduction. The study is expected to continue until December this year, with commercialization planned for around 2030, depending on the progress of the study.

The participants will pool their expertise and experience to promote the production of sustainable products in Japan, create new industries centered on forest resources, and contribute to local revitalization. By promoting the recycling of forest resources, the project also hopes to address current issues facing Japan’s forestry industry, such as carbon fixation, water conservation, and disaster prevention.

According to Marubeni, Japan’s rich forest resources have extensive development potential, especially the large amount of mesquite and residue produced during the wood utilization process, which is expected to become an important source of sustainable raw materials. In addition, with the rise of large-scale wooden buildings, the opportunity to utilize the related wood residue resources will also increase.

Renewable diesel plant files for bankruptcy protection

Global Clean Energy Holdings Inc., which owns a renewable diesel plant in Bakersfield, California, announced on April 16 that it has entered into a restructuring support agreement (RSA) with its principal creditor, Vitol Americas Corp. Vitol, as lender on the revolving line of credit and representative of the interim term loan group, controls approximately 96% of the term loan. and representative of the interim term loan group, controls approximately 96% of the term loan. The parties to the agreement also include CTCI Americas Inc.

which has formally filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas in furtherance of the reorganization transaction. Noah Verleun, President and Chief Executive Officer, thanked all parties for their continued support and said the partnership reflects confidence in its “farm-to-fuel” business model.

The company has filed a first-day motion to maintain day-to-day operations, including the payment of employee wages and benefits. To fund the restructuring, the company’s term lenders and CTCI will provide $100 million in DIP financing, which remains subject to certain conditions. The company expects to complete the confirmation process for its plan of reorganization in August.

European Biodiesel Board supports EU action against fuel fraud

The European Biodiesel Board (EBB) on April 14 welcomed the EU’s move to combat Annex IX biofuel fraud and supported the Sustainability Committee’s specific discussions on the issue, emphasizing that fraud not only threatens the survival of the entire industry, but also undermines the validity of sustainability certification schemes and the EU’s climate goals.

The Commission said that the EU biofuels industry has always maintained high standards and strictly complied with the relevant provisions of the Renewable Energy Directive (RED). While respecting the confidentiality of the Commission’s deliberations, EBB calls on lawmakers to listen to the industry’s voice and work together to advance reforms. To this end, EBB has submitted a revised proposal for immediate and specific adjustments to the current EU rules.

EBB notes that voluntary schemes (such as ISCC) and certification bodies play a key role in the current certification system. The association called for greater investment, especially in compliance monitoring in third countries.EBB also emphasized that non-compliance should be punished more severely to ensure that only truly sustainable biofuels count towards the RED target.

Secretary General Xavier Nouillon said that only strict enforcement of RED criteria will ensure that biofuels make a real contribution to the EU’s transport emissions reduction targets. He said the industry was highly appreciative of the determination shown by EU lawmakers, despite the fact that the final solution was not yet clear.

BP suspends SAF project expansion in Spain

According to Bloomberg, BP has decided to suspend its Sustainable Aviation Fuel (SAF) production expansion project at its Castellón refinery in Spain. The project was originally part of BP’s $2.2 billion decarbonization plan announced in 2023 to promote low-carbon fuels.

Sources familiar with the matter said that BP made the adjustment mainly because the SAF market has not developed as expected, and demand growth has been slow, which has put the economics of the expansion plan into question.

In fact, in February this year, BP has announced that it will significantly reduce the proportion of investment in renewable energy, the future will be more resources reconfigured to oil and gas and other traditional energy business. This strategic shift means that its “transition to net zero” target pace will be further slowed.

BP’s move reflects that, even in the context of the global green transition calls for more and more, SAF and other emerging energy markets are still facing policy, cost, technology and demand for multiple challenges of uncertainty.

Kazakhstan ready to build SAF plant

On April 9, Aviation LLC, a subsidiary of Kazakhstan’s National Oil Company (NOC), LanzaJet, a sustainable aviation fuel (SAF) technology company, and KazFoodProducts LLP (KFP), an agro-industrial holding company, formally signed an agreement to initiate a feasibility study for the construction of an SAF plant in Kazakhstan.

The pre-feasibility study for the project was successfully completed in 2024, and the main feasibility study is currently being progressed and is expected to be completed by the end of 2025, according to the report. During this period, the partners will conduct a comprehensive assessment of core elements such as site selection, capacity scale and raw material supply, and provide support for the final investment decision.

As an important energy country in Central Asia, Kazakhstan’s vigorous layout of sustainable fuels may bring new variables to the global SAF industry chain, and LanzaJet’s participation in the project highlights its internationalization and technological advancement, which is worth the industry’s continued attention.

Neste starts SAF production in Rotterdam, Netherlands

Neste Corp., a producer of renewable diesel and sustainable aviation fuel (SAF), announced April 9 that it has begun producing SAF at its biorefinery in Rotterdam, the Netherlands.

The refinery has been retrofitted to produce up to 500,000 tons of SAF per year, or approximately 165 million gallons.

As a result, Neste’s global SAF production capacity has been increased to 1.5 million tons per year, or approximately 495 million gallons.

This will make the Rotterdam refinery the largest renewable diesel and SAF production facility in the world.

The expansion, which is scheduled to be completed in 2027, will bring Neste’s total global renewable fuel production capacity to 6.8 million tons per year, of which Neste’s total SAF production capacity will be 2.2 million tons per year.

Thailand builds UCO system to promote SAF production

April 7 – Thai Industry Minister Mr. Akanat Promphan has announced that Thailand is accelerating the localization of Sustainable Aviation Fuel (SAF) production, with a focus on using Used Cooking Oil (UCO) as the primary feedstock. To this end, the Department of Industrial Promotion (DIPROM) has signed a Memorandum of Understanding (MoU) with Bangchak Corporation and five leading companies including Central Group, Charoen Pokphand Foods, and others, to build an efficient UCO supply chain. The initiative supports Thailand’s Bio-Circular-Green (BCG) economic policy and aims to help the country achieve carbon neutrality.

Dr. Nattapol Rangsitpol, Permanent Secretary of the Ministry of Industry, stated that the goal is to establish a full value chain collaboration covering feedstock, production, and market deployment. Ms. Natthinya Netyasupha, Director General of DIPROM, added that the initial phase will focus on building UCO collection mechanisms in the industrial and service sectors, while exploring alternatives like palm oil and sugarcane by-products.

Bangchak CEO Mr. Chaiwat Kovavisarach revealed that the company is already producing one million liters of 100% pure SAF daily under ISCC certification. He called on the government to issue clear mandates on SAF blending ratios and introduce incentive policies to support the development of a sustainable SAF ecosystem.

USDA Invests $537 Million in Biofuel Projects to Boost Rural America

U.S. Secretary of Agriculture Brooke Rollins announced a $537 million investment in 543 biofuel infrastructure projects across 29 states, under the Higher Blends Infrastructure Incentive Program (HBIIP). This initiative supports President Trump’s 20th executive order, focused on expanding domestic energy production and strengthening rural economies.

Announced at Elite Octane LLC in Atlantic, Iowa—home to one of the nation’s largest biofuel production capacities—the funding will help fuel retailers upgrade storage tanks and pumps to increase the availability of higher ethanol and biodiesel blends. Iowa alone houses 42 ethanol plants and 10 biodiesel facilities, producing billions of gallons annually.

HBIIP aims to make it easier for gas stations to offer blends like E15, E85, and B20, which can power millions of U.S. vehicles. This effort not only promotes cleaner, renewable fuels but also boosts demand for corn and soybeans, directly benefiting American farmers.

Rollins emphasized that this investment reflects the administration’s commitment to U.S. farmers and energy independence, stating, “We’re investing in America’s heartland—not just to grow crops, but to fuel the future.”

IOC Set to Launch Sustainable Aviation Fuel in India by Early 2025

India’s leading energy company, Indian Oil Corporation (IOC), is poised to introduce its first batch of Sustainable Aviation Fuel (SAF) by March next year, according to a report by Business Line. Utilizing an innovative co-processing method, IOC aims to rapidly advance SAF availability ahead of government mandates. The Indian government has established an indicative target requiring a 1% blend of SAF in conventional jet fuel for international flights starting in 2027, driving companies like IOC to accelerate their sustainability initiatives.

To meet this goal, IOC has partnered with LanzaJet to explore alcohol-to-jet technology for SAF production. Simultaneously, the company is actively developing a more cost-effective co-processing approach. IOC’s strategy relies heavily on utilizing waste cooking oil as the primary feedstock, converting it into sustainable fuel through existing refinery processes.

This strategic move by IOC highlights India’s commitment to environmental sustainability and aligns with global efforts to reduce aviation emissions. By leveraging waste-based resources and adopting innovative processing technologies, IOC seeks to position itself as a leader in India’s growing SAF market, contributing significantly toward greener aviation ahead of regulatory timelines.

ENEOS and American Airlines: Pioneering Japan’s Sustainable Aviation Future

Japanese energy powerhouse ENEOS Corporation has just unveiled a groundbreaking sustainable aviation fuel (SAF) agreement with American Airlines—marking the first-ever SAF procurement by the U.S. carrier within Japan. Under this innovative pact, American Airlines will power its Haneda-to-New York flights using SAF, signaling a significant step toward reducing carbon emissions in the aviation industry.

In a bold move to support sustainable energy initiatives, ENEOS is set to supply and market SAF domestically, paving the way for cleaner, greener air travel. The collaboration comes as part of an ongoing effort between ENEOS and Mitsubishi Corporation, which have joined forces on a Front End Engineering Design (FEED) project. This strategic partnership aims to assess and develop a state-of-the-art SAF production facility at ENEOS’ sites in Arita City and Wakayama.

Pending favorable FEED results, the facility is projected to kick off production from the fiscal year 2028, with an impressive annual output of approximately 300,000 tons of SAF. In addition to SAF, the plant will also produce valuable by-products, including bio-naphtha and biodiesel fuel fractions, further enhancing its contribution to the sustainable energy landscape.

This milestone agreement not only reinforces the commitment of both ENEOS and American Airlines to environmental sustainability but also highlights the transformative potential of SAF in reshaping the future of aviation.