Start of the Study to Build a Value Chain for Sustainable Aviation Fuel with Used Cooking Oil as Feedstock

Revo International , JGC Japan Corporation, and Japan Petroleum Exploration Co., Ltd. (hereinafter referred to as "JAPEX") begin study to build a value chain in Japan for next-generation aviation fuel SAF (Sustainable Aviation Fuel) that utilizes used cooking oil as feedstock in January 2020.

The International Civil Aviation Organization (ICAO) decided in 2016 "not to increase total CO₂ emissions in the international aviation sector from 2020" as an initiative by the aviation industry requiring rapid action to reduce emissions of greenhouse gases (GHG) worldwide. Based on such a decision, in the aviation industry the development of a stable supply of SAF has been expected, derived from biomass sources, including urban waste, vegetable oil, animal fats, used cooking oil, and lumber, and emissions from steel plants and refineries. Commercialization of aviation fuel utilizing SAF is already moving forward especially in the US and Europe, though still limited as a percentage of total aviation fuel. While Japan's aviation industry is also proceeding with studies and demonstration tests of SAF through public and private efforts, production costs and stable supply of SAF are issues. The industry has an urgent need to establish a stable SAF supply chain in Japan with reasonable economics.

In light of these conditions, Revo International, which has a long-term track record of production and supply of biodiesel fuel made from used cooking oil, JGC, which possesses extensive experience building plants and facilities and is actively promoting the development of environmental business, and JAPEX, which is experienced in oil and natural gas E&P (exploration, development, production and supply) and is pursuing the development of next-generation technologies utilizing knowhow in such areas (hereinafter collectively referred to as "the Companies"), decided to conduct a joint study for the establishment of an SAF production system and to build a value chain in Japan.

The goal of the study aims to quickly realize SAF production with used cooking oil as feedstock in Japan by deploying proven technology which is already applied to the existing plants in the US and other locations. In this study, the Companies will be supported by airlines as the SAF off-takers, domestic oil refining industries with an existing jet fuel supply chain and related governmental agencies, and will focus on establishing an efficient collection network of used cooking oil. The Companies plan to conduct a feasibility study for the production and supply of SAF that employs used cooking oil as the raw material within 2020, and then aim to build an SAF value chain in Japan through promotion. Through the study, the Companies aim to contribute to the establishment of a sustainable and circular society from the perspective of reducing GHG emissions and recycling waste.