March 03, 2025 [SAF Investor]- Japanese petroleum company Taiyo Oil said its Okinawa sustainable aviation fuel (SAF) production project has been selected for the Ministry of Economy, Trade and Industry’s (METI) “Subsidy for Promotion of Transition to a Decarbonized, Growth-Oriented Economic Structure (SAF Manufacturing and Supply Chain Development Support Project).”

With the subsidy, the company plans to complete manufacturing its facilities by the end of FY2028 and begin supplying SAF and renewable diesel from FY2029 onwards.

The company will utilise Honeywell UOP’s ethanol-to-jet (ETJ) technology to produce 200,000 KL of SAF and RD as a by-product annually. It has already signed a process license agreement with UOP for the production facility in December 2024 and have commenced basic design work with UOP.

In addition, the company plans to source ethanol for the feedstock from overseas.

By utilizing existing facilities at the Okinawa operations, the company will be able to receive feedstock by large vessels and storage tanks, aiming to secure cost-competitive ethanol.

In addition, Taiyo is also planning explore procurement of domestic ethanol (including ethanol derived from Okinawan sugarcane and ethanol produced utilising abandoned farmland across Japan) and second-generation ethanol, contributing to regional revitalisation through economic circulation.

The petroleum company said that key customers for the SAF will be major domestic airports, including Naha Airport and broader Asia-Oceania region.

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data