Euglena, Japan Airport Terminal Co. sign agreement to build SAF supply chain at Haneda Airport

Japan Airport Terminal Co. Ltd. and Euglena Co. Ltd. announced May 8 that they have signed a memorandum of understanding (MOU) to jointly consider building a supply chain toward commercializing the supply and sale of sustainable aviation fuel (SAF) to airlines at Tokyo International Airport (Haneda Airport), and that Japan Airport Terminal will underwrite the first series of unsecured straight bonds (green bonds) issued by Euglena.

With countries around the world aiming to achieve carbon neutrality by 2050, the importance of decarbonization efforts in the aviation and airport sectors is increasing.

Japan Airport Terminal, which is responsible for the construction, management and operation of Haneda Airport’s passenger terminals, is considering energy-saving measures and initiatives to utilize next-generation energy sources such as hydrogen to reduce CO2 emissions at the passenger terminals and is also promoting collaboration with airlines and other organizations to contribute to the decarbonization of the entire airport.

Meanwhile, Euglena is working with Petronas and Eni on a project to build and operate a commercial biofuel production plant in Malaysia with the aim of commercializing the biofuel business and is promoting the development of ongoing supplier destinations and the expansion of partnerships in order to supply large quantities to domestic users and build a supply chain after the commercial plant is completed.

The two companies share aspirations to achieve a decarbonized society through the supply of SAF.

After repeated discussions between the two companies about business collaboration in the SAF field, they have decided to enter into this MOU agreement, Euglena said.

Based on this agreement, the companies plan to establish a supply chain for supplying SAF to Haneda Airport, and to consider commercializing the supply and sale of SAF to airlines after the supply chain is established.

If the Japanese government’s policy of setting a domestic SAF supply target of 10 percent of aviation fuel consumption in 2030 is applied to Haneda Airport’s actual aviation fuel supply in 2022, approximately 220 million liters (58.1 million gallons) of SAF will be required per year.

Going forward, the two companies will work together to establish a system that can supply up to 50 million liters (13.2 million gallons) of SAF, equivalent to approximately 23 percent of the required amount, to airlines that wish to receive SAF from their bases in Japan.

In addition, Euglena will issue its first series of unsecured straight bonds (green bonds) to Japan Airport Terminal under the following conditions:

“Aiming to realize the group’s long-term vision … we have set measures against climate change as one of materiality and are working to reduce CO2 emissions by 46 percent in fiscal 2030 compared to fiscal 2013, and to achieve net zero by 2050,” said Isao Takagi, chairman and CEO of Japan Airport Terminal. “Until now, we have focused on reducing CO2 emissions from passenger terminals, but this time, through our collaboration with Euglena, which advocates ‘sustainability first,’ and the establishment of a supply chain for SAF to Haneda Airport, which is the key to decarbonizing the aviation sector, and the consideration of commercializing the SAF supply and sales business, we will strive to contribute—even if only a little—to realizing decarbonization at Haneda Airport and improving the international competitiveness of Japan’s airports, including Haneda Airport.”

Mitsuru Izumo, the president and CEO of Euglena, added, “We have been conducting research and development with sustainability at the core and have expanded into healthcare, energy and environmental businesses. We are very pleased to be able to collaborate in the SAF field with Japan Airport Terminal, which is aiming to create an advanced airport that is friendly to both people and the environment. We believe that combining Japan Airport Terminal’s knowledge of the aviation and airport fields and its network with airlines with the SAF produced in this project that we are working on with Petronas and Eni will truly embody [sustainable development goals] … and we are excited at the prospect of taking a big step toward realizing ‘sustainability first.’”