Neste and ITOCHU have agreed to extend their collaboration with a licensing agreement allowing ITOCHU to become an official distributor of Neste MY Renewable DieselTM in Japan. Based on this agreement, the availability of Neste MY Renewable Diesel will be expanded in the market, for example, to the area around Osaka in order to supply the fuel to the construction site of the Osaka-Kansai Japan Expo taking place in 2025.
Japan has accelerated the steps towards decarbonization in order to meet two ambitious climate goals: carbon neutrality by 2050 and a 46% reduction in greenhouse gas (GHG) emissions by 2030. Neste and ITOCHU share a common vision of renewable fuels playing a key role in reducing greenhouse gas emissions in Japan. The key focus in the current collaboration will, therefore, be not only on selling but also on promoting the use of more sustainable fuels, accelerating the transition from fossil fuels to renewable fuels, and increasing knowledge sharing on renewable diesel and the benefits it provides to its users.
“We are very excited to expand our Neste MY Renewable Diesel offering in Japan. We firmly believe that all solutions are needed to reduce transportation-related emissions and support Japan’s target of reaching carbon neutrality by 2050. We are committed to supporting our customers to reduce greenhouse gas emissions by at least 20 million t annually by 2030,” says Peter Zonneveld, Vice President Sales, Europe and APAC at Neste’s Renewable Road Transportation business unit.
Neste and ITOCHU started collaborating in Japan already in June 2021 to make renewable diesel available to selected customers in Japan. At the time, the partners agreed to build a strategic partnership to accelerate the use of renewable diesel as a low-emission solution for diesel engines in Japan.
“The relationship between Neste and ITOCHU first started as early as in 2010, when we collaborated on renewable diesel in California. We are now very pleased to deepen the relationship by expanding the distribution of renewable diesel in Japan. Renewable diesel is getting a lot of attention as a solution for decarbonising multiple industries such as heavy-duty transportation, off-road and railways in Japan. We are very happy to strengthen the partnership with Neste and thereby help the Japanese market to reduce its greenhouse gas emissions,” says Tatsuya Tanaka, ITOCHU’s General Manager of the petroleum trading department.
By switching fossil diesel to Neste MY Renewable Diesel, GHG emissions can be reduced by as much as 75 – 95% when emissions over the fuel's life cycle are compared with fossil diesel. Neste MY Renewable Diesel is produced from 100% renewable raw materials. It is a drop-in fuel, not requiring any modifications to the existing diesel-powered vehicles or fuel distribution infrastructures.