Japan provides subsidy for Taiyo Oil’s SAF project based on Honeywell’s ethanol-to-jet technology

Taiyo Oil’s Okinawa operations in Japan. (Photo: Taiyo Oil)

Taiyo Oil’s ethanol-to-jet (ETJ) sustainable aviation fuel (SAF) project at its Okinawa operations was selected for a subsidy in February by Japan’s Ministry of Economy, Trade and Industry.

This facility will be based on Honeywell UOP’s first ETJ license and basic-engineering design in the Asia-Pacific region with a production target of 200 million liters (nearly 53 million gallons) per year.

Expected to begin operation in 2029, Honeywell said the facility becomes the fifth of its kind in the world and will provide a vital supply of SAF to both domestic and international markets, contributing significantly to the growing demand for SAF driven by the aviation industry’s efforts to reduce carbon emissions.

“For more than 40 years, Honeywell has provided Taiyo Oil with key major refining-process units for its Shikoku operations, and we are honored to continue this trusted relationship to help the company advance its decarbonization initiatives,” said Barry Glickman, vice president and general manager of Honeywell Sustainable Technology Solutions. “As demand for SAF continues to increase, the aviation industry faces challenges posed by the limited availability of conventional SAF feedstocks like vegetable oils, animal fats and waste oils. Honeywell’s ETJ SAF technology broadens the available feedstock options to help overcome these challenges.”

The feedstock material for SAF and renewable diesel production will primarily be ethanol sourced from overseas, Taiyo Oil stated.

“By utilizing existing facilities at the Okinawa operations, we will be able to receive feedstock by large vessels and storage tanks, aiming to secure cost-competitive ethanol,” Taiyo Oil stated. “In addition, we plan to explore the procurement of domestic ethanol—including ethanol derived from Okinawan sugarcane and ethanol produced utilizing abandoned farmland across Japan—and second-generation ethanol, contributing to regional revitalization through economic circulation.”

Taiyo Oil said the SAF will be supplied to major domestic airports, including Naha Airport.

“Leveraging Okinawa’s strategic geographical location at the center of East Asia, we aim to export cost-competitive SAF using large vessels to meet significant potential demand across the Asia-Oceania region,” the company added. “SAF will be supplied not only for passenger aircraft but also for cargo transportation, promoting greenhouse-gas (GHG) reduction in cargo flight and contributing to the enhancement of international competitiveness of Japanese industry through GHG reduction of overall supply chains. Furthermore, utilizing the vast unused land at our Okinawa operations, by leveraging our SAF manufacturing and supply project, we aim to contribute further economic development and job creation in Okinawa through creating new business, expanding business domain and strengthening collaboration with decarbonation-related natural resources and energy industries.”

Teruaki Sasaki, an executive with Taiyo Oil, said, “Taiyo Oil’s initiative represents an important leap forward in increasing the production of SAF. By leveraging Honeywell’s ETJ SAF technology, we will be in a better position to help fulfill the global aviation sector’s demand and contribute toward the overall decarbonization goals.”

The rising demand in SAF aligns with Taiyo Oil’s initiatives to produce ETJ SAF in support of global decarbonization goals, Honeywell said.

SAF produced from Honeywell’s ETJ process can be used as a drop-in replacement that requires no modifications to aircraft technology or existing fueling infrastructure.