Eneos eyes Japan’s 50% SAF market by 2050
Japanese petroleum and metals conglomerate Eneos Holdings said it is targeting to secure 50% of the total sustainable aviation fuel (SAF) market of Japan by 2050 through reviving closed refineries.
The company said it plans to utilise Wakayama refinery site, which terminated its refinery operation, advancing commercialization of SAF business to make it one of the main production sites for SAF in Japan.
It further added it has already concluded a joint agreement on construction of SAF supply chain with Wakayama prefecture, Kao, Suntory.
The company is also planning to supply up to 250,000 tonnes of Hydrogen per annum in 2030, further scaling it to 1-4m tonnes per annum by 2050 (target of 50% of domestic market share) by 2040.
The company already has already announced multiple initiatives to scale hydrogen production including joint study with Osaka Gas and JFE for large-scale utilization of CO2-free hydrogen. The company also launched collaboration with Air Liquide to accelerate the development of low-carbon hydrogen, joint development agreement with SEDC Energy and Sumitomo Corporation on hydrogen project and equity participation in MVCE Gulf Coast, LLC of the US to produce clean hydrogen in the Gulf of Mexico in the U.S.
The company also said it is working with Aramco, Idemitsu Kosan and HIF Global for production of synthetic fuels and e-fuels.
Japan has already set a target of 10% SAF usage for airlines by 2050. Japan Transport and Tourism Research Institute (JTTRI) estimates the theoretic production capacity of SAF could hit 7.06-13.13m kiloliters (kl) annually by 2030, comprising of a 40% blend of carbon dioxide and hydrogen and 32% municipal and industrial waste.
Considering the impact of government policies, JTTRI expects the actual SAF supply to reach up to 1.34m kl per year by 2030, sufficient to provide 10% of the fuel consumption in the aviation industry.