Consortium including Japan Airlines, Marubeni and Mitsubishi Chemical, announce Pre-Feasibility Study for SAF, bio-naphtha and renewable diesel from forestry residues
Japan Airlines, Marubeni, Mitsubishi Chemical , Chugoku Lumber, Boeing Japan, and Obayashi, have concluded a MOU on a preliminary business feasibility study for the manufacture and sale of SAF, bio-naphtha, and renewable diesel from domestic forest residues. This study envisions the potential use of Licella’s Cat-HTR technology.
Overview of announcement
Japan Airlines (“JAL”), Marubeni Corporation (“Marubeni”), Mitsubishi Chemical Corporation (“Mitsubishi Chemical”), Chugoku Lumber Co., Ltd. (“Chugoku Lumber”), Boeing Japan KK (“Boeing”), and Obayashi Corporation (“Obayashi”), have concluded a memorandum of understanding on a preliminary business feasibility study for the manufacture and sale of sustainable aviation fuel (“SAF”), bio-naphtha, and renewable diesel from domestic forest residues (the “Pre-Feasibility Study”).
Overview of the Pre-Feasibility Study
This study envisions the potential use of Licella’s Cat-HTRTM hydrothermal liquefaction (HTL) technology to produce a bio-intermediate (renewable oil) from wood residues, which will then be reformed and refined for use in making products such as SAF, bio-naphtha, and renewable diesel towards the building of a domestic
supply chain. 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; and evaluate product logistics and effectiveness in reducing CO2 emissions.
The study is scheduled to run until December 2025 and aims to commercialise the product around 2030 depending on the progress of the study.
Projected design for the Pre-Feasibility Study
Background and Significance
Japan is among the leading countries in terms of forest resources worldwide, 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 utilise the residues generated as a result of such initiatives.
Roles of each company in the Pre-Feasibility Study
| Japan Airlines |
Manufacturing business Study Entity; Consideration on SAF use |
| Marubeni |
Manufacturing business Study Entity; Overall summary of the Pre-Feasibility |
| Mitsubishi Chemical |
Manufacturing business Study Entity; Technology evaluation support; |
| Chugoku Lumber |
Consideration on raw material procurement and supply methods |
| Boeing |
Technical certification support |
| Obayashi |
Consideration on renewable diesel use |
