Taiyo Oil SAF production project selected for manufacturing and supply chain development
Published by Oliver Kleinschmidt,
Assistant Editor
Hydrocarbon Engineering,
Taiyo Oil has had its sustainable aviation fuel (SAF) production project, currently under planning for its Okinawa Operations (formerly Nansei Sekiyu K.K.), selected as a subsidised project under the Ministry of Economy, Trade, and Industry’s (METI) ‘Subsidy for Promotion of Transition to a Decarbonised, Growth-Oriented Economic Structure (Sustainable Aviation Fuel (SAF) Manufacturing and Supply Chain Development Support Project).’
Taiyo Oil will accelerate efforts for this project, aiming to complete the facilities by the end of FY2028 and begin supplying SAF and renewable diesel (RD), a next-generation biofuel alternative to diesel, from FY2029.
This project will utilise Honeywell UOP's (UOP) Ethanol To Jet (ETJ) technology, which complies with ASTM Standard D7566 Annex 5, to produce 200 000 kl/y of SAF and RD as a by-product. The introduction of UOP's technology marks the first time it will be implemented in Japan and the Asia-Pacific region. However, the company has already incorporated UOP's technology into several refining facilities at our Shikoku Operations and have built a close and strong relationship with UOP through years of operational and maintenance experience. Taiyo Oil already signed a process license agreement with UOP for this SAF production facility in December 2024 and have commenced basic design work with UOP.
The feedstock material for SAF and RD production will primarily be ethanol sourced from overseas. By utilising existing facilities at the Okinawa Operations, the company will be able to receive feedstock by large vessels and storage tanks, aiming to secure cost-competitive ethanol. In addition, it plans to explore the procurement of domestic ethanol (including ethanol derived from Okinawan sugarcane and ethanol produced utilising abandoned farmland across Japan) and second-generation ethanol, contributing to regional revitalisation through economic circulation.
SAF will be supplied to major domestic airports, including Naha Airport. Leveraging Okinawa’s strategic geographical location at the centre of East Asia, the company aims to export cost-competitive SAF using large vessels to meet significant potential demand across the Asia-Oceania region. In recent years, Okinawa has been expected to develop into a hub for large scale tourism, business, and logistics projects. Through the supply of SAF and RD produced in this project, Taiyo Oil aims to meet the increasing domestic demand for jet fuel, while contributing to greenhouse gas (GHG) reduction in the region and enhancing Okinawa’s attractiveness.
SAF will be supplied not only for passenger aircraft but also for cargo transportation, promoting GHG reduction in cargo flight and contributing to the enhancement of international competitiveness of Japanese industry through GHG reduction of overall supply chain.
Furthermore, utilising the vast unused land at Okinawa Operations, by leveraging the SAF manufacturing and supply project, Taiyo Oil aims to contribute further economic development and job creation in Okinawa, through creating new business, expanding business domain, and strengthening collaboration with decarbonation-related natural resources and energy industries.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/28022025/taiyo-oil-saf-production-project-selected-for-manufacturing-and-supply-chain-development/
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