Okinawa SAF Production Project Selected for METI's "Sustainable Aviation Fuel (SAF) Manufacturing and Supply Chain Development Support Project"

2025.02.21

Taiyo Oil (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Takahiro Yamamoto) has had its SAF production project, currently under planning for our Okinawa Operations (formerly Nansei Sekiyu K.K.), selected as a subsidized project under the Ministry of Economy, Trade and Industry’s (METI) “Subsidy for Promotion of Transition to a Decarbonized, Growth-Oriented Economic Structure (Sustainable Aviation Fuel (SAF) Manufacturing and Supply Chain Development Support Project).” Taiyo Oil will accelerate efforts for this project, aiming to complete the facilities by the end of FY2028 and begin supplying SAF and renewable diesel (hereinafter “RD”), a next-generation biofuel alternative to diesel, from FY2029.

This project will utilize Honeywell UOP's (hereinafter referred to as “UOP”) Ethanol To Jet (ETJ) technology, which complies with ASTM Standard D7566 Annex 5, to produce 200,000 KL of SAF and RD as a by-product annually. The introduction of UOP's technology marks the first time it will be implemented in Japan and the Asia-Pacific region. However, we have already incorporated UOP's technology into several refining facilities at our Shikoku Operations and have built a close and strong relationship with UOP through years of operational and maintenance experience. We already signed a process license agreement with UOP for this SAF production facility in December 2024 and have commenced basic design work with UOP.

The feedstock material for SAF and RD production will primarily be ethanol sourced from overseas. 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. 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.

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. In recent years, Okinawa has been expected to develop into a hub for large-scale tourism, business, and logistics projects. Through the supply of SAF and RD produced in this project, we aim to meet the increasing domestic demand for jet fuel, while contributing to greenhouse gas (GHG) reduction in the region and enhancing Okinawa’s attractiveness.

SAF will be supplied not only for passenger aircraft but also for cargo transportation, promoting GHG reduction in cargo flight and contributing to the enhancement of international competitiveness of Japanese industry through GHG reduction of overall supply chain.

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.

Project Overview

Planned construction site	Okinawa Operations (Nishihara-cho, Nakagami-gun, Okinawa Prefecture) 　Former Nansei Sekiyu K.K.
Project description	Production of SAF and RD using Ethanol to Jet (ETJ) technology
Production volume	SAF (Neat SAF): 200,000 KL/year *RD will also be produced as a by-product.
Raw materials	Overseas-produced ethanol Future consideration of domestic and second-generation ethanol
SAF and RD production technology licensor	UOP LLC (USA)