Idemitsu to conduct joint study on creating SAF supply chain in Australia

Japanese oil company Idemitsu Kosan Co., Ltd., together with Burnett Mary Regional Group (BMRG) and J-Oil Mills, Inc., will undertake a joint study on establishing a sustainable aviation fuel (SAF) supply chain in Queensland, Australia. The project will be undertaken in cooperation with the Queensland government.

There is a growing social demand to achieve a stable supply of sustainable aviation fuel to reduce CO2 emissions in the aviation industry. SAF is produced from non-fossil fuel derived raw materials, and one of the challenges is to secure raw materials that are less competitive with food crops, while there are multiple technological processes and raw materials for this purpose. 

Pongamia pinnata, a legume that grows throughout Southeast Asia and Oceania, is a non-edible oil feedstock with high oil yield efficiency and is expected to be leveraged as an SAF feedstock.

The project will study the planting and management of Pongamia pinnata trees, CO2 fixation and offsetting through the planting, building an SAF supply chain (harvesting, separation of oil, transportation, and SAF production), and forest investment. The aim is to start small-scale cultivation verification in Queensland by the end of 2023.

The Burnett Mary Regional Group is the peak body for natural resource management within the Burnett Mary region in Queensland. Established in 2001, it is one of 54 national, not-for-profit regional bodies providing an essential link between the community and various programs procured by government and other funding sources. 

BMRG’s vision is “to protect and enhance the agricultural and natural environment of the Burnett Mary region for future generations”. To achieve its vision, BMRG has developed strong relationships with the Australian Federal Government, the Queensland State Government, local governments, and others.

Idemitsu is working to implement diverse and environmentally friendly low-carbon energy, resource-saving, and circulation solutions in society while fulfilling its responsibility to provide a stable supply of energy, mainly fossil fuels including petroleum, under its 2030 Vision “Your Reliable Partner for a Brighter Future” and 2050 Vision “Shape the Change”. 

As part of this plan, Idemitsu plans to establish a green supply chain for biomass-derived fuels and chemicals, such as SAF, biodiesel, and bio-chemicals, by 2030. 

J-Oil Mills is developing a wide range of businesses centered on edible oil and fat products, aiming to realise good taste, health, and low burden by extracting value from plant-derived raw materials, in order to achieve its medium-term business plan “Transforming for Growth” until FY2026 under the vision “Joy for Life® – Bringing joy to the future by food -“. J-Oil Mills has also positioned reducing environmental burden as one of our materiality, and have set a goal of becoming carbon neutral by reducing CO2 emissions by 50% compared to FY2013 by FY2030 (Scope 1 and 2) and to zero emissions by FY2050.