Itochu to supply sustainable aviation fuel to Japan Airlines

Photo: Itochu Corp.

Itochu Corp. announced Nov. 7 that it has reached an agreement with Japan Airlines Co. Ltd. to supply the airline sustainable aviation fuel (SAF) produced by Neste Corp.

SAF will be supplied as fuel for the “Sustainable Charter Flight” scheduled to be operated by Japan Airlines on the Tokyo (Haneda)-Okinawa (Naha) route Nov. 18.

Itochu and Japan Airlines have signed a memorandum of understanding to discuss SAF supply in FY2023 as well.

The International Civil Aviation Organization general assembly has set a goal of net-zero CO2 emissions from aircraft by 2050.

In addition, from 2024 onward, the industry will be required to reduce or offset 15 percent of its emissions from 2019 levels.

The trend of decarbonization in the airline industry is expected to further accelerate, and it is expected that the volume of SAF distribution will increase in Japan in the future as well.

In this environment, the commencement of SAF supply to Japan Airlines, which is one of the leading Japanese airline companies with a broad flight service network, is believed to make a significant contribution to achieving the goal of the Civil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism to replace 10 percent of all aviation fuels with SAF by 2030.

Neste is expanding its SAF production capacity globally. Following the completion of the Singapore refinery expansion and the Rotterdam refinery modification, its global annual production capacity will be 1.5 million tons per year by the end of 2023 and 2.2 million tons per year by 2026.

Itochu concluded a branded distribution marketing agreement with Neste in February and will work for the stable supply of SAF in Japan under the partnership. Itochu has already established a stable SAF supply chain at Haneda Airport and Narita International Airport in Japan by, for example, setting up a domestic supply chain ranging from SAF import and quality management to the SAF delivery up to airports, extending the supply chain up to aircrafts.

Itochu plans to expand the SAF supply base to Chubu Centrair Airport this fiscal year and Kansai International Airport in the first half of next year and expand SAF supply to both domestic and overseas airlines.