Japanese firms to undertake feasibility study for SAF, bio-naphtha, and renewable diesel from forest residues

Japan Airlines Co, Marubeni Corporation, Mitsubishi Chemical Corporation, Chugoku Lumber Co, Boeing Japan KK, and Obayashi Corporation, have concluded a memorandum of understanding on a preliminary business feasibility study for the manufacture and sale of sustainable aviation fuel (SAF), bio-naphtha, and renewable diesel from domestic forest residues.

Japan is among the leading countries in terms of forest resources worldwide, with high expectations that thinning materials and residues generated from wood usage can be leveraged as sustainable raw materials due to their potential volume. In addition, the use of wood in large-scale wooden buildings, including high-rise buildings, is currently in the spotlight from the perspective of resource circulation, and it is expected that there will be an increase in opportunities to utilize the residues generated as a result of such initiatives.

A consistent domestic supply chain, from raw materials to production and use, is needed to build a stable system for the supply of SAF in response to the expansion of demand from 2030 onwards, when full-fledged use of SAF is set to commence.

This study envisions the potential use of manufacturing technology developed by Australian tech firm Licella to produce a bio-intermediate (renewable oil) from wood residues, which will then be reformed and refined for use in making products such as SAF, bio-naphtha, and renewable diesel towards the building of a domestic supply chain. This supply will leverage a model involving local consumption of locally produced products.

Specifically, the study will assess the economic viability of the business; consider the raw material supply and processing system as well as the manufacturing process; and evaluate product logistics and effectiveness in reducing CO2 emissions.

The study is scheduled to run until December 2025 and aims to commercialise the product around 2030 depending on the progress of the study.

Cat-HTR platform is the world’s leading hydrothermal liquefaction (HTL) technology, using water to sustainably transform abundant waste feedstocks into an advanced bio-intermediate, upgraded to advanced biofuels, biomaterials and circular plastic through advanced recycling