JAL and ENEOS Sign Joint Procurement Agreement for SAF - Accelerating Decarbonization by Building a Supply Chain in Japan

Japan Airlines (JAL) and ENEOS announced on July 12 that they had concluded a sales agreement for Sustainable Aviation Fuel (SAF). ENEOS will be the first oil sales company in Japan to import SAF and supply it to JAL. The two companies plan to jointly promote decarbonization in the aviation industry, aiming for the early adoption of SAF within Japan.

The aviation industry has set a goal of achieving net-zero CO2 emissions from international flights by 2050, targeting a 15% reduction in emissions compared to 2019 starting this year. In its current medium-to-long-term management plan, JAL has set a target of using SAF for 1% of its total fuel load in fiscal 2025 and 10% in fiscal 2030.

Promoting the spread of domestically produced SAF is crucial for accelerating decarbonization in the aviation industry, which led to this agreement between JAL and ENEOS. JAL, along with All Nippon Airways (ANA) and others, established a private organization called 'ACT FOR SKY' on March 2, 2022, with the aim of developing domestic SAF. ENEOS is also directly involved in domestic SAF and participates as an 'ACT Member,' a key player in establishing the supply chain.

According to SAF annual production forecasts released by IATA (International Air Transport Association), production this year is expected to reach 1.9 billion liters (1.5 million tons), a threefold increase from the previous year. However, this still only accounts for 0.53% of the world's annual aviation fuel demand this year. To achieve zero CO2 emissions by 2050, IATA urges governments worldwide to implement policies promoting SAF adoption.