Japan mulls SAF subsidy: reports

The Japanese government is reportedly planning to subsidise sustainable aviation fuel (SAF) purchases by domestic airlines.

Under the plan, the subsidy will be partially funded by airline passengers. The government is working on introducing a levy on airline passengers similar to Singapore’s model.

The oil refiners and distributors will be asked to blend and provide SAF to airlines at airports.

Reports say that the government is likely to finalise an initial draft on the subsidy during the ongoing fiscal year. The legislation, called the Airport Law will ensure measures to address the both supply and demand dynamics of SAF in the country.

In addition, the policy will also ensure robust capital investment for both suppliers with support from municipalities and local governments to develop a used cooking oil collection network that would be supplied to refineries for conversion in to SAF.

To note, several local governments are already working on local UCO collection. Last week, Saffaire Sky Energy, in partnership with JGC Holdings and Revo International, entered in an agreement with the Tachikawa City, Tokyo to recycle used cooking oil to produce SAF.

A signing ceremony for the agreement was also held at Tachikawa City Hall on the same day, with Tokyo’s Mayor Sakai in attendance.