Marubeni has begun supplying Sustainable Aviation Fuel*¹ (SAF) produced by the co-processing pathway, which processes petroleum-derived and bio-based feedstocks simultaneously, within Japan. Marubeni procured SAF derived from vegetable oil (used cooking oil) that was produced by HD Hyundai Oilbank, a Korean oil refining company, at its refinery, and supplied it to All Nippon Airways Co., Ltd. at the Chiba terminal of Marubeni Ennex Co., Ltd., a wholly owned subsidiary of Marubeni. This is the first time that SAF based on the co-processing pathway has been supplied within Japan.

 

The Environment Surrounding the Aviation Industry
The aviation industry is currently facing an urgent need to reduce CO₂ emissions throughout the world, and the International Civil Aviation Organization (ICAO) has accordingly introduced a CO₂ emission reduction system.*² Given this new system’s implementation and the Japanese government’s target to increase Japan’s SAF blended ratio in aviation fuel from to 10% by 2030, the demand for SAF, a fuel with great potential as a new-generation low-carbon fuel to reduce CO₂ emissions, is expected to grow.

What is the Co-Processing Pathway Method?
The co-processing pathway is a method used to produce partly bio-derived petroleum products by mixing petroleum-derived and bio-derived feedstock such as vegetable oil (used cooking oil) and inputting them into existing refinery units. Existing units can be used to co-process feedstock without large-scale renovation work, thus allowing for lower capital investment expenditures and an earlier start of SAF production. Therefore, utilizing the co-processing pathway is expected to be an effective option during the transition period until new SAF production facilities are operational and widespread.

Future Outlook
Marubeni formulated its long-term climate change vision in March 2021 and has positioned its green strategy as one of the basic policies for enhancing corporate value in its mid-term management strategy GC2024. Going forward, Marubeni aims to continue making medium- to long-term contributions to global climate change measures, including the decarbonization of the aviation industry by further expanding its SAF sales network.

1 Jet fuel that is not derived from fossil fuels and whose total lifecycle CO₂ emission volume is lower than fossil fuels.

2 In 2016, the ICAO adopted the Carbon Offsetting and Reduction Scheme for International Aviation (hereinafter, “CORSIA”). Under CORSIA, airlines are obligated to procure CO₂ emission credit and offset carbon emissions if their CO₂ emission volumes exceed the given limits, so that their CO₂ emission amounts in their entirety do not increase from the ones recorded in 2021.

Company Overview

Company Name:	HD Hyundai Oilbank
Head Office:	Seongnam City, Republic of Korea
Establishment:	1964
Representative:	President & CEO Young Min Chu
Main Business:	Manufacture and sale of petroleum products
Website:	https://www.hd-hyundaioiilbank.co.kr/eng/main/index.do

Company Name:	All Nippon Airways Co., Ltd.
Head Office:	Tokyo, Japan
Establishment:	1952
Representative:	President and CEO Shinichi Inoue
Main Business:	Air transport business, aerial use business, etc.
Website:	https://www.ana.co.jp/group/en/

Company Name:	Marubeni Ennex Co., Ltd.
Head Office:	Chiba City, Chiba Prefecture, Japan
Establishment:	1973
Representative:	Representative Director and President Koichiro Kawano
Main Business:	Biofuel, petroleum, LP gas, methanol and other organic chemical products, storage management, operation, and rental of product tanks and related facilities
Website:	https://www.marubeni-ennex.co.jp/