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Charting Å·²©ÓéÀÖ path: SAF Ecosystem in Japan

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Charting Å·²©ÓéÀÖ path: SAF Ecosystem in Japan
Apr 9, 2024

Japan has proposed a 10% Sustainable Aviation Fuel (SAF) target by 2030. This new report evaluates Å·²©ÓéÀÖ feedstocks, technologies, and policies required to develop a SAF ecosystem in Japan and achieve this target.

The need for SAF in Japan

Aviation plays a pivotal role in Japan’s economic and social well-being. Air transport is a vital bridge, connecting communities and facilitating Å·²©ÓéÀÖ flow of goods, investment, and economic progress. However, it is essential for Å·²©ÓéÀÖ country to address Å·²©ÓéÀÖ challenge of emissions reductions associated with aviation growth.

SAF, derived from feedstocks like agricultural residues and waste materials, is a critical solution for reducing aviation emissions. IATA that SAF could contribute 65% of Å·²©ÓéÀÖ emissions reduction required for aviation to achieve 2050 emissions goals. SAF also serves as a drop-in fuel compatible with existing aircraft engines.

Domestic SAF production not only enhances energy security but also aligns with Japan’s economic interests. By using multiple feedstock, SAF facilities can also produce renewable diesel and naphtha, supporting energy security and Å·²©ÓéÀÖ reduction of carbon across various sectors.

Japan has proposed replacing 10% of its 2030 jet fuel demand with SAF, with plans to introduce regulations by mid-2024. This strategic shift, in line with toward carbon neutrality by 2050, holds significant potential for improving carbon emissions in Å·²©ÓéÀÖ aviation industry.

Key takeaways for SAF in Japan

ICF—in collaboration with Boeing, Mitsubishi Heavy Industries, and SMBC Aviation Capital—conducted an in-depth analysis to evaluate Å·²©ÓéÀÖ potential mechanisms to establish a successful SAF ecosystem in Japan and to meet Å·²©ÓéÀÖ proposed 2030 SAF target.

With Å·²©ÓéÀÖ support and local expertise from various industry stakeholders in Japan, this report outlined Å·²©ÓéÀÖ following conclusions:

  • The study reveals significant domestic feedstock availability, with Å·²©ÓéÀÖ potential to produce 11 million kiloliters (2,906 million gallons) of SAF by 2050. Alongside SAF, this feedstock would also yield 4.6 million kiloliters (1,215 million gallons) of renewable diesel and naphtha co-products.
  • However, Japan faces limitations in its production capacity, hindering Å·²©ÓéÀÖ processing of domestic feedstocks into SAF by 2030. The most promising feedstocks for Japan, such as municipal solid waste and renewable electricity, require new supply chains, technologies, and facilities. Developing Å·²©ÓéÀÖse will enable Japan to transition to domestic feedstocks in Å·²©ÓéÀÖ medium to long term while ensuring short-term uptake through imported SAF or easily refined bio-intermediaries like ethanol.
  • Policy support plays a pivotal role. To attract private investment, consistent regulatory frameworks are crucial for SAF facilities. Supporting Å·²©ÓéÀÖ 10% target with clear specifications (including levels before and after 2030, sustainability criteria, and buyout prices) will encourage investment and level Å·²©ÓéÀÖ playing field between domestic and foreign carriers.

While Å·²©ÓéÀÖ analysis showed significant domestic feedstock availability, it outlines challenges related to production capacity and Å·²©ÓéÀÖ need for new supply chains and technologies to support Å·²©ÓéÀÖ production of SAF. Download this report for a complete outline of Å·²©ÓéÀÖ costs and risks associated with SAF facilities.

By strategically addressing Å·²©ÓéÀÖse factors, Japan can pave Å·²©ÓéÀÖ way for a greener aviation industry while ensuring short-term viability through imported SAF.

Download Å·²©ÓéÀÖ full report