Toyo, JGC Holdings propose to produce SAF in Vietnam

Japan’s Toyo Group, which has a diverse investment footprint in Vietnam, is exploring the production of sustainable aviation fuel (SAF) in Vietnam. On March 7, Koshio Katsuhiko, chairman of Toyo Group, met with Vietnam’s Minister of Transport Nguyen Van Thang.

Toyo Group’s current investment in Vietnam spans real estate, energy, and more, with notable projects including a USD40 million Green Energy Plant in Binh Dinh province in the south central coast and a USD220 million renewable energy project in Bac Ninh province in the north.

Based in Tokyo, Japan, Toyo Group is collaborating with JGC Holdings Corporation, a prominent engineering company specializing in the design and construction of large-scale projects in the energy, petrochemical, and other industrial sectors headquartered in Yokohama, Japan.

This new initiative aligns with global efforts to achieve carbon neutrality, acknowledging that electric vehicles alone will not suffice. The proposed SAF project aims to harness various green energy sources, including waste cooking oil and alternative energies. The project, emphasising raw materials, technology, and cost, is set to undergo a four to six month research phase with an estimated investment of USD200,000 to USD300,000, followed by a detailed planning phase costing about USD1 million.

Nguyen lauded the initiative, highlighting Vietnam’s commitment to sustainable development and green energy transformation in aviation, in line with COP 26 and COP 28 commitments. The country’s ambitious plans include using at least 10% SAF by 2035 and transitioning to 100% green energy and SAF by 2050 to achieve net-zero emissions.

Despite challenges posed by the Covid-19 pandemic and rising fuel costs, the Vietnamese government remains committed to reducing emissions and transitioning to clean fuels. The high cost of SAF, currently two to three times more expensive than fossil-based jet fuels, underscores the importance of domestic production to reduce costs and support Vietnamese airlines in their green transition.

The minister has tasked the Vietnam Aviation Administration with coordinating the SAF production project with Toyo Group and JGC Holdings. The development of policy mechanisms for SAF production and use is also on the agenda, ensuring a comprehensive approach to adopting green aviation fuels in Vietnam.