Itochu to deliver SAF to JAL

Japanese trading house Itochu is to deliver sustainable aviation fuel (SAF) produced by Finnish biofuels producer Neste to Japanese carrier Japan Airlines (JAL).

Itochu and JAL on 25 October agreed to supply Neste’s SAF blended in Europe to JAL’s flights on 18 November, which will connect Japan’s Haneda airport near Tokyo to Naha in south Japan’s Okinawa prefecture. JAL will also use some of the SAF for other flights departing Haneda and Tokyo’s Narita airport, Itochu said.

The blending ratio of the SAF will be around 40pc, according to Itochu. The company last month supplied around 20,000 USG (476 bl) of jet fuel with 39.66pc SAF blend to the UAE’s Ethihad Airways at Narita to be transported to Abu Dhabi.

Itochu and JAL are also negotiating a SAF supply contract for the 2023-March 2024 fiscal year. The details are still under discussion and it could be a multi-year agreement, according to Itochu.

Fellow Japanese carrier All Nippon Airways received Neste’s SAF in 2020, also working with Itochu.

Itochu is accelerating its SAF business to contribute to Japan’s target of 10pc of SAF being used by domestic airlines by 2030. It agreed with Neste in February to deliver Neste’s SAF at Haneda and Narita airports. Itochu plans to expand SAF supplies to other airports in the country, such as Kansai and Chubu.

The company is separately exploring producing blended SAF in Japan, mixing neat SAF produced by Neste with traditional jet fuel, working with the country’s land and transport ministry (MLIT) and domestic refiner Fuji Oil.

MLIT projects Japan’s SAF demand to be 2.5mn-5.6mn kl/yr (43,000-96,000 b/d) by 2030 and 23mn kl/yr by 2050.