Chiyoda Announces Signing of Front-end Engineering Design Contract for Izumo Kogyo SAF Production Facility

On December 20, Chiyoda Corporation announced that it has been successfully awarded a front-end engineering design (FEED) contract by Idemitsu Kogyo Co. for a sustainable aviation fuel (SAF) production facility at the Tokuyama Complex Facility in Shonan, Japan.

Idemitsu plans to commit to producing 500 million liters (approximately 132 million gallons) of SAF annually through the establishment of a domestic supply chain in support of the Japanese government’s and the aviation industry’s goal of replacing 10 percent of aviation fuel consumption with SAF by 2030.

According to Izumo Kogyo’s plans, the complex will produce 250 million liters (approximately 66 million gallons) of SAF annually from fiscal 2028 onward, utilizing hydrogenated ester and fatty acid (HEFA) technology, a move that marks an important step in Japan’s efforts in the field of sustainable aviation fuels.

Chiyoda says it will make full use of its technological capabilities and extensive experience in oil and gas plant engineering accumulated over 70 years, and will contribute to the smooth implementation of the SAF production facility at this complex through the efficient execution of FEED work, actively supporting Japan’s energy transition goals.

Chinese logistics giant Shunfeng achieves first SAF commercial flight on all-cargo domestic flights

In the early morning of 19th December 2024, a B737 all-cargo aircraft of SF Airlines refuelled with Sustainable Aviation Fuel (SAF) took off from Ningbo, successfully completing the first SAF commercial flight of an all-cargo aircraft in China, marking an important step in the green development of cargo aviation.

At the ‘Zero Carbon Future – SAF Flight Inaugural Ceremony’ held in Ningbo, SF was awarded a Carbon Neutral Evaluation Certificate and signed a Letter of Intent on Strategic Cooperation with CECC for SAF Credit Issuance and Certification Services.

The flight demonstrated the latest achievements of SF in green aviation and its determination to practice the low-carbon concept, setting a benchmark for the sustainable development of the aviation logistics industry.

Kawasaki Kisen Kaisha Supplies Biofuel for the First Time to its Ships Operating in Japan (B24)

Kawasaki Kisen Kaisha Corporation (K Line) announced on 19 December that it supplied marine biofuel to Viking Ocean, a car carrier operated by the K Line Group, at Yokohama Oguro C-4 Terminal, a full-vehicle terminal operated by the K Line Group, on 9 December.

This is the first time that Kawasaki Kisen Kaisha has supplied biofuel to a vessel it operates in Japan.

The vessel is owned by Norwegian company Gram Car Carriers, a long-term partner of K Line.

Wood signs contract with OMV Petrom to produce SAF in Europe

John Wood Group PLC announced on 19 December that it has been awarded a major contract by OMV Petrom for a major project aimed at boosting sustainable fuel production in South East Europe.

Within the scope of the project, the Petrobrazi refinery in Romania will be the first major production facility for sustainable aviation fuel (SAF) in the region.

The project will utilise Honeywell’s UOP Ecofining™ process technology to produce sustainable aviation fuel (SAF) and hydrogenated vegetable oil (HVO).

 

Moeve to provide easyJet with SAF until 2030

Moeve and easyJet have signed a Memorandum of Understanding (MoU) to accelerate the decarbonisation of air transport through the promotion of Sustainable Aviation Fuels (SAF), in a joint effort to reduce the carbon footprint of air transport. Under the agreement, easyJet will use SAF on its Spanish route network over a six-year period from 2025 to 2030.

Moeve produces SAF from used cooking oil at its La Rábida Energy Park (Huelva), a second-generation biofuel that reduces CO2 emissions by up to 90 per cent over its entire life cycle compared to conventional paraffin.

Incentives Attract $820 Million SAF Project to Illinois

Illinois Governor JB Pritzker, Avina Clean Hydrogen, and the Illinois Department of Commerce and Economic Opportunity (DCEO) jointly announced on December 19 that Avina Clean Hydrogen has selected southwestern Illinois as the location for its $820 million sustainable aviation fuel (SAF) project.

This investment will enable Avina Clean Hydrogen to build a state-of-the-art facility in the region, utilizing KBR’s alcohol-to-jet technology to produce up to 120 million gallons of SAF annually. The project will help Illinois meet its clean energy goals while supporting the state’s rapidly growing clean energy economy.

The facility is expected to reduce approximately 25 million metric tons of carbon emissions from the aviation industry annually over its lifecycle, making a significant contribution to global emission reduction targets. Additionally, the project will create at least 150 full-time jobs and approximately 1,000 construction jobs in Illinois, providing a substantial boost to the local economy.

To promote SAF production and sales, Illinois has also introduced tax credit incentives to encourage its use at airports across the state.

This investment represents a significant step forward in Illinois’ efforts to advance sustainable development and clean energy innovation. It highlights the growing trend of the aviation fuel sector moving toward low-carbon, green solutions. With the increasing global demand for emission reductions and clean energy, Avina Clean Hydrogen’s project will undoubtedly play a key role in the aviation industry’s sustainable transformation in the coming years.

Biofuels Policy Uncertainty, Palm Oil Falls in Five-Day Streak

Malaysian palm oil futures closed lower on Thursday and fell for the fifth consecutive session as they were dragged down by uncertainty over Indonesian and U.S. biofuel policies.

Analysts said crude palm oil prices continued to fall from Wednesday as sentiment in the global vegetable oil market changed this week, in addition to higher vegetable oil prices leading to uncertainty over Indonesian and US biofuel policies, which have led to increased subsidies for their respective projects.

Indonesia’s chief economy minister said the country will increase its gross palm oil export fee to 10 per cent from the current 7.5 per cent to subsidise biodiesel projects. Indonesia plans to increase the mandatory blending rate for palm oil-based biodiesel from 35% to 40%, or B40, on 1 January 2025, which means palm oil demand is expected to rise by nearly 3 million tonnes for the year if Indonesia rolls out B40 as expected.

Final Malaysian March palm oil closed down 0.38 per cent to 4,512 ringgit per tonne, while Dalian soybean oil fell 3 .48 per cent and palm oil 3 .83 per cent, and Chicago soybean oil rose 1 .01 per cent.

Galp plans to start producing biofuels in 2026

Portugal’s Galp Energia (GALP.LS) said on Thursday it expects to start building an industrial-scale unit at its Sines refinery in 2026 to produce biodiesel and biojet fuel from waste.

Last year, Galp set up a joint venture with Japan’s Mitsui & Co (8031.T) with a 75%-25% stake each, and the new label will invest 400 million euros ($415 million) in a hydrogenated vegetable oil (HVO) plant, which will produce 270,000 tonnes a year.

EU palm oil imports continue to decline

The European Union has seen a consistent decline in palm oil imports over recent years. This trend is largely attributed to increasing environmental concerns and the push for sustainability within EU policies. Palm oil production has been widely criticized for its role in deforestation, biodiversity loss, and greenhouse gas emissions, which are major drivers of climate change. In response, the EU has implemented stricter regulations to limit the use of unsustainable palm oil, particularly in biofuels.

One of the key policies driving this decline is the Renewable Energy Directive (RED II), which classifies palm oil-based biofuels as having a high risk of indirect land-use change (ILUC). As a result, the EU plans to phase out the use of such biofuels by 2030. Additionally, growing consumer awareness about the environmental impacts of palm oil has led to a shift in demand, with many companies opting for certified sustainable palm oil or alternative ingredients.

The decrease in imports is also influenced by trade tensions and tariffs between the EU and major palm oil-producing countries, such as Indonesia and Malaysia. These countries have criticized the EU’s policies as discriminatory, arguing that they unfairly target palm oil while overlooking other unsustainable practices. Despite these challenges, the EU remains committed to reducing its reliance on palm oil to meet its climate goals and promote sustainable practices globally.

As the EU continues to lead the charge in environmental reform, this trend highlights the growing importance of balancing trade, sustainability, and global cooperation in addressing environmental issues. The decline in palm oil imports reflects not only policy changes but also a broader shift toward a more sustainable future.

Crude palm oil (CPO) prices fall to one-month lows

Crude palm oil (CPO) futures contracts on Bursa Malaysia’s derivatives market ended lower on Wednesday, falling for a fourth consecutive session, weighed down by declines in rival edible oils.

Crude palm oil prices fell to a one-month low on growing concerns over the biodiesel B40 programme, which starts next month.

At the close, the January 2025 contract fell RM189 to RM4,700 a tonne, the February 2025 contract dropped RM182 to RM4,619 a tonne and the March 2025 contract fell RM196 to RM4,529 a tonne.

April 2025 fell by RM194 to RM4,427 per tonne, May 2025 fell by RM176 to RM4,343 per tonne, and June 2025 fell by RM156 to RM4,271 per tonne.