Idemitsu Kosan collaborates with Zen-Noh Grain to secure SAF feedstocks, develop business in North America

Tokyo, Japan-based Idemitsu Kosan Co. Ltd. has signed a memorandum of understanding (MOU) with Zen-Noh Grain Corp. of Covington, Louisiana, a subsidiary of the National Federation of Agricultural Cooperative Associations, regarding a strategic cooperation in establishing a sustainable aviation fuel (SAF) supply chain.

The purpose of this agreement is to secure a variety of vegetable-oil feedstock for hydroprocessed esters and fatty acids (HEFA) technology to develop a North American SAF business and to consider supplying vegetable-oil feedstock to Japan.

To meet growing demand for SAF, it is necessary to establish production technology and flexible feedstock procurement.

Idemitsu Kosan has set a goal of establishing an annual supply system of 500 million liters (132.1 million gallons) of SAF by 2030 and is conducting verification production by introducing alcohol-to-jet technology at its Chiba Complex using the Green Innovation Fund, as well as studying SAF production using HEFA technology at its Tokuyama Complex.

While vegetable oils are used as feedstocks for HEFA technology, securing HEFA feedstock oil to meet the growing demand for SAF worldwide presents a challenge, according to Idemitsu Kosan.

To secure oil as a feedstock, the company will collaborate with Zen-Noh Grain, which operates on a scale comparable to grain majors in the United States, to verify the use of vegetable oil—mainly soybean oil—and vegetable oil derived from inedible oilseeds grown as cover crops.

Details of the collaboration are as follows:

Development of SAF business opportunities in the U.S. and Japan by crushing soybeans handled by Zen-Noh Grain as the HEFA feedstock, and supply of the feedstock for the company’s SAF production.

Study, verification and development for commercialization of oilseed feedstock (assuming camelina, carinata and winter canola as cover crops) in North America.

Research on the use of oil-extraction residue from pongamia for animal feed in Japan.

Idemitsu Kosan said it will promote social implementation of domestically produced SAF through the establishment of SAF production technology and diversification of feedstocks.

In the long term, the company said it will also consider collaboration with the National Federation of Agricultural Cooperative Associations “to realize a diverse and environmentally friendly carbon-neutral energy society, not only in the SAF business, but also in the areas such as the collection of used plastics in Japan.”