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Idemitsu to begin trial of non-edible oilseed crop for aviation fuel

TOKYO, Jan 9 (Reuters) - Idemitsu Kosan  5019.T  will
begin a trial plantation of the non-edible oilseed tree crop
Pongamia in Australia from mid-January to assess its potential
as a feedstock for sustainable aviation fuel (SAF), Japan's No.2
crude oil refiner said on Thursday.
     The plantation will be conducted in collaboration with
Terviva, a U.S. company with over a decade of research and
cultivation expertise in Pongamia, Idemitsu said in a statement.
    Pongamia, a leguminous plant distributed in Southeast Asia
and Oceania, is a highly efficient non-edible oilseed crop that
does not compete with food production, according to Idemitsu.  
    Idemitsu, aiming to establish a supply system for 500,000
kilolitres of SAF annually by 2030, said it has also invested in
Terviva, it said, but did not disclose the investment details.
    Through the trial plantation, Idemitsu will evaluate
long-term cultivation methods for Pongamia and how to optimize
the supply chain from cultivation to SAF production.
    Idemitsu will also explore additional uses for Pongamia,
including creating carbon credits through afforestation, 
producing biomass power pellets from Pongamia shells, and using
pressed oilseed cake as livestock feed.
    Oil extracted from its seeds is expected to serve as a
feedstock for sustainable aviation fuel production, the company
said.
    SAF is considered crucial for the aviation sector to reach
its goal of net zero carbon emissions by 2050, but its adoption
remains in a nascent phase.
    SAF makes up only around 0.3% of global jet fuel usage and
is projected to reach just 0.7% by 2025, according to data from
airline trade body IATA. Experts emphasize that the production
rate of the green fuel needs to grow quickly for the sector to
achieve its emissions targets.  

 (Reporting by Yuka Obayashi
Editing by Tomasz Janowski)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))

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