BusinessDevelopment of SAF Business

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Development of SAF BusinessDevelopment of SAF Business

World’s First: Non-Standard coconut as SAF Feedstock*
Driving Innovation in Sustainable Fuel Development Domestically and Globally

As part of global efforts to combat climate change, the aviation industry is increasingly transitioning from fossil fuels to Sustainable Aviation Fuel (SAF). Our company is pioneering the development of SAF derived from Non-Standard coconut, which do not compete with food sources, positioning us as a global leader in this field. we are advancing business initiatives to commercialize SAF business by 2030, aiming to reduce environmental impact while creating economic value.

*Non-Standard coconut, such as inedible coconuts used as eligible SAF feedstock, have been newly registered on the ICAO (International Civil Aviation Organization) approved feedstock list.

Key Business Activities

  • Global standardization of
    “Non-Standard coconut”
    as SAF feedstock
  • Developing optimized
    catalytic processes for
    neat SAF production
  • Building a supply chain
    from feedstock
    procurement to neat SAF
    production and sales

Topic
GHG Reduction Across the Supply Chain* Targeting a 70% Reduction

From collecting Non-Standard coconut to processing them into CCO (Crude Coconut Oil) and neat SAF production in Japan, we aim to significantly reduce GHG emissions throughout the entire process.

What is SAF?

SAF stands for Sustainable Aviation Fuel.
SAF is made from renewable resources such as used cooking oil, sugarcane biomass, and municipal waste. It offers a significant life-cycle CO2 reduction of approximately 60–80%.

By using plant-based raw materials, the balance of CO2 emissions is offset by CO2 absorption during the plants’ growth.

  • SAF
  • conventional jet fuel

Global SAF supply remains at just 0.1% of the total jet fuel supply

Despite ongoing efforts by the aviation industry to research low-CO2-emission fuels, as of 2022, SAF accounted for only 0.1% of global jet fuel supply. In Japan, domestic production of SAF is similarly limited, underscoring the urgent need to scale up SAF production both domestically and globally.

What is Neat SAF?

Currently, SAF must be blended with fossil-based jet fuels like Jet A-1 for use in aviation.
The term “blended SAF” refers to the fuel after it has been mixed with fossil fuels, whereas “Neat SAF” refers to the state of the sustainable aviation fuel before blending with fossil fuels.

What Makes Us Different

01The World’s First Commercialization of
SAF from Non-Standard coconut

In response to the urgent need for decarbonizing aviation fuels, our company has been at the forefront of research and development for the commercialization of SAF derived from Non-Standard coconut, setting a global precedent.

The Potential of Coconuts as SAF Feedstock

Carbon Number Similar to Jet Fuel Hydrocarbons:

Compared to other biomass fuels like palm oil, jatropha, and rapeseed, Crude Coconut Oil (CCO) contains fatty acids with a carbon number similar to those found in jet fuel hydrocarbons. This structural similarity allows for more efficient processing, reducing the need for additional hydrogen during the hydrocarbon breakdown.

01 The World’s First Commercialization of SAF from Non-Standard coconut
Utilization of All Coconut Parts for Energy and Fuel:

The entire coconut, including the shell, husk, water, and meat, can be repurposed for energy and fuel production. This comprehensive use significantly contributes to GHG reduction and the achievement of carbon neutrality.

01 The World’s First Commercialization of SAF from Non-Standard coconut
01 世The World’s First Commercialization of SAF from Non-Standard coconut01 The World’s First Commercialization of SAF from Non-Standard coconut

02Establishing Non-Standard coconut as a Global SAF Feedstock

The development of SAF from Non-Standard coconut began with the creation of an official definition for those coconuts. With strong support from the Indonesian government, this project has progressed, and in March 2024, Non-Standard coconut were officially added to the ICAO CORSIA Positive List as an approved SAF raw material.

01

Defining Non-Standard coconut

We spearheaded the development of an international standard for coconut eligible for use as SAF feedstock, with backing from the Indonesian government and intergovernmental organizations under the United Nations.

02

March 2024: Non-Standard coconut Officially
Registered as SAF Feedstock

Non-Standard coconut were formally included in the ICAO CORSIA Positive List as SAF feedstock.

03

Building a Sustainable Raw Material Supply Chain for CORSIA Certification

We are promoting Crude Coconut Oil (CCO) production facilities in the countries where feedstcoks are sourced. Additionally, we are establishing a traceability system to track the handling from production sites to CCO plants.

※ICAO:International Civil Aviation Organization
※CORSIA:Carbon Offsetting and Reduction Scheme for International Aviation

A definition of a Non-Standard coconut

  • Too smallToo small
  • SproutedSprouted
  • CrackedCracked
  • RottenRotten

Standard coconut (reference)

  • standard coconut (reference)standard coconut (reference)
  • standard coconut (reference)standard coconut (reference)

03 Advancing Catalyst Development by Utilizing the Superiority of Coconut as a SAF Feedstock

We are harnessing the specific advantages of Crude Coconut Oil (CCO), which has a carbon number structure similar to jet fuel, to facilitate catalytic reactions under low hydrogen pressure. By developing a multifunctional catalyst capable of simultaneously driving hydrogenation, decarboxylation, and isomerization reactions, we aim to efficiently convert CCO into neat SAF. This approach suppresses cracking reactions, creating an eco-friendly, low-hydrogen-consumption catalytic process.

03 Advancing Catalyst Development by Utilizing the Superiority of Coconut as a SAF Feedstock03 Advancing Catalyst Development by Utilizing the Superiority of Coconut as a SAF Feedstock

Development of a Multifunctional Catalyst for Concurrent
Reactions and Enhanced Decarboxylation

We are advancing the design of a multifunctional catalyst capable of facilitating multiple reactions concurrently, with a particular focus on promoting decarboxylation. This innovation represents a significant step toward the realization of a sustainable, low-hydrogen consumption process with reduced environmental impact.

SAF Plant Concept with Integrated Green Energy Circulation

SAF Plant Concept with Integrated Green Energy Circulation

04Successful Production of Neat SAF in Accordance with ASTM Standards

ASTM standards, comparable to Japan’s JIS standards, are industrial specifications developed by ASTM International, the world’s leading standardization organization. Since 2019, we have been conducting joint research with Tokyo University of Agriculture and Technology to develop innovative catalysts for the production of SAF from Non-Standard coconut. In June 2024, we successfully achieved the production of SAF conforming to ASTM standards.

June 2024: Successful production of SAF in accordance with Annex 2 of ASTM D7566

04 Successful Production of Neat SAF in Accordance with ASTM Standards04 Successful Production of Neat SAF in Accordance with ASTM Standards

Topic

70% GHG Reduction Throughout the Supply Chain

Our company has developed a comprehensive business model for sustainable aviation fuel (SAF), which includes sourcing “Non-Standard coconut” from major production countries such as Indonesia and the Philippines, manufacturing coconut oil (CCO), and importing CCO to Japan for the production of neat SAF. This model further encompasses the transportation and distribution of SAF to aviation fuel companies. We estimate a greenhouse gas (GHG) reduction of approximately 70% across the entire process—from feedstock procurement to the production and sale of neat SAF—compared to Conventional Jet Fuel

70–80% GHG Reduction Throughout the Supply Chain70–80% GHG Reduction Throughout the Supply ChainOur business
domain

Future Business Prospects

Looking ahead to the operational launch of our commercial plant in 2030, we are dedicated to addressing the escalating global demand for sustainable aviation fuel (SAF) and contributing to the mitigation of environmental challenges. Our accomplishments, including the successful certification of Non-Standard coconut as a feedstock and the development of neat SAF in accordance with ASTM standards, exemplify our steady advancement within the SAF sector.

In this context, we plan to commence operations of our demonstration plant by 2026. In order to confront the fuel-related challenges faced by the aviation industry and to engage with the significant environmental issues that require global attention, our organization is committed to leading innovative initiatives both domestically and internationally. We will continue to promote demonstration research and pursue further avenues for commercialization.