Prefeasibility study begins in Japan for commercialization of SAF, renewable diesel using domestic forest residues

Source: Marubeni Corp.

Marubeni Corp. recently announced that it and Japan Airlines, Mitsubishi Chemical Corp., Chugoku Lumber Co. Ltd., Boeing and Obayashi Corp. have concluded a memorandum of understanding on a preliminary business feasibility study for the manufacture and sale of sustainable aviation fuel (SAF), bionaphtha, and renewable diesel from domestic forest residues.

This study envisions the potential use of manufacturing technology developed by Licella, an Australian technology company whose patented Cat-HTR™ platform is a leading hydrothermal liquefaction technology, to produce a biointermediate oil from wood residues.

This bio-oil will then be reformed and refined for use in making products such as SAF, bionaphtha and renewable diesel towards the building of a domestic supply chain in Japan.

This supply will leverage a model involving local consumption of locally produced products.

Specifically, the study will:

• Assess the economic viability of the business.

• Consider the raw-material supply and processing system as well as the manufacturing process.

• Evaluate product logistics and effectiveness in reducing CO2 emissions.

The study is scheduled to run until December and aims to commercialize the product around 2030, depending on the progress of the study.

The companies participating in this study will pool their knowledge and expertise toward:

• The realization of the domestic production of sustainable products.

• The creation of new industries utilizing forest resources throughout Japan.

• The promotion of regional revitalization.

In addition, by promoting the circulation of forest resources, they will aim to contribute to the resolution of Japan’s forestry challenges, including carbon fixation, water-resource conservation and disaster prevention.

Japan is among the leading countries in terms of forest resources worldwide, according to Marubeni, with high expectations that thinning materials and residues generated from wood usage can be leveraged as sustainable raw materials due to their potential volume.

In addition, the use of wood in large-scale wooden buildings, including high-rise buildings, is currently in the spotlight from the perspective of resource circulation, and it is expected that there will be an increase in opportunities to utilize the residues generated as a result of such initiatives.