JGC forms JV with Cosmo Oil and REVO to produce SAF in Japan

JGC Holdings Corporation, with Cosmo Oil Co. Ltd. and REVO International Inc., has formed SAFFIARE SKY ENERGY LLC  to locally produce and supply  sustainable aviation fuel (SAF) from used cooking oil in Japan. JGC Holdings and Cosmo Oil will each own 48% of the Yokohama-based company, with REVO International owning 4%.

The company name is a combination of “sapphire,” a gemstone, and  “SAF.” The deep blue color of  sapphires often symbolizes an unwavering spirit, representing the company’s  commitment to  help decarbonise the aviation sector. 

The three companies started a joint feasibility study in the summer of 2020, to determine commercialization, with the aim of building a domestic supply chain from the collection of used cooking oil to production, transport, and supply of sustainable aviation fuel.

SAFFIARE SKY ENERGY aims to become the first large-scale producer of sustainable aviation fuel in Japan. The new company will target annual SAF production of approximately 30,000 kiloliters. The fuel will be sourced entirely from used cooking oil. Construction of the SAF production facility will  begin in the summer of 2023 at Cosmo Oil’s Sakai Refinery in Osaka. Completion is expected by the end of 2024. In addition to SAF, the plant will also produce bionaphtha, a raw material for  bioplastic, and biodiesel. 

This project was the result of a call for proposals from Japan’s New Energy and Industrial Technology  Development Organization (NEDO) to develop SAF production technologies domestically. A safe and stable supply chain will be established by combining the knowledge and expertise of each company. REVO International and JGC Holdings will both be responsible for raw material procurement. Cosmo Energy Group (Cosmo Oil and Cosmo Oil Marketing Co., Ltd.) will be responsible for SAF production, marketing and sales.

Design, procurement, and construction for this facility will be  undertaken by JGC Japan Corporation.