Idemitsu Kosan, LOPS to conduct joint studies on procurement of SAF feedstock

Used cooking oil

Idemitsu Kosan Co. Ltd. and LOPS Corp., which operates an oils and fats business, have agreed to conduct joint studies on the procurement of sustainable aviation fuel (SAF) feedstock and have signed a basic agreement.

The two companies aim to establish a system to stably procure SAF feedstocks such as used cooking oil (UCO) from various parts of Japan by the late 2020s, in order to implement domestically produced SAF.

As a specific measure to reduce CO2 emissions in the aviation industry, there is a growing social demand to achieve a stable supply of SAF.

SAF is produced from nonfossil-derived raw materials, but one of the challenges is to secure raw materials that are less competitive with food crops.

Through this agreement, the two companies will utilize Idemitsu Kosan’s petroleum product manufacturing technology, LOPS’s knowledge of animal and vegetable oils and fats, and their respective supply chains to procure SAF feedstocks such as UCO in Japan, study optimization and cost reduction of storage and marine and land transport and establish a system and structure for stable procurement.

Idemitsu Kosan is working to establish a domestic SAF production system of 132 million gallons per year to achieve the Japanese government and aviation industry’s goal of replacing 10 percent of fuel consumption by Japanese airlines with SAF by 2030.

To this end, in addition to demonstration using alcohol-to-jet technology at the Chiba Complex, which is scheduled to begin supply in 2026, Idemitsu Kosan is also considering deployment of hydroprocessed esters and fatty acids (HEFA) technology for Unit 2 and beyond, with the aim of starting supply in the late 2020s.

Established in 2007, LOPS is a trading company specializing in oils and fats.

LOPS supplies oil and fat feedstocks for various applications backed by friendly and strong partnerships with producers and has a more than 50 percent share in the export of UCO.

Through this agreement, the two companies will contribute to the decarbonization of aviation fuel as they engage in the issues involved in securing SAF feedstock.