Latest news with #CosmoEnergyHoldings
Yahoo
18-04-2025
- Business
- Yahoo
Industry leader announces surprising fuel upgrade that could change how we fly
Cosmo Energy Holdings, the third-largest oil refiner in Japan, is beginning to produce sustainable aviation fuel and working toward full-scale production. It will supply the fuel to Japanese airline companies for a cleaner alternative to traditional air travel. As Reuters reported, Cosmo planned production at its Osaka-based Sakai refinery earlier this year. It aimed to produce 30,000 kiloliters of sustainable aviation fuel per year by April. The company supplies eco-friendly fuel to Japan Airlines and All Nippon Airways. This commitment is significant because it is Japan's first domestically produced green fuel for airlines. Cosmo's sustainable fuel is made from cooking oil and is the first large-scale production of its kind in the country. The refiner worked with two other companies to produce it but declined to provide details about the fuel's price and volume. The news from Japan is encouraging worldwide because of how sustainable aviation fuel can reduce the harmful air pollution associated with traditional plane travel. The aviation industry is responsible for about 2% of global energy pollution. This contribution impacts our planet's overheating and leads to public health risks and extreme weather events. In other parts of the world, sustainable aviation fuel companies like LanzaJet have been creating millions of gallons of alternative fuel to offset air travel pollution. That company's fuel is made from low-carbon intensity ethanol, or grain alcohol, using corn. Another company, OXCCU, has been creating jet fuel from air pollution using renewable energy and a combination of hydrogen and carbon dioxide. As a traveler, you can look into flying on planes powered by sustainable fuel and support airlines' efforts to embrace fuels with lower carbon impacts. For example, Delta has been actively working to use sustainable fuels to reduce the environmental impact of its flights. Which of the following sustainable changes would make you most likely to choose a particular airline? Using cleaner fuel Reducing in-flight waste Making it easy to choose low-emissions itineraries I don't pay attention to sustainability when I fly Click your choice to see results and speak your mind. Until sustainable fuel flights become more readily available, you can change the way you travel by embracing train travel and vacationing close to home in places that don't require a flight. When you do fly, consider eco-friendly travel destinations to help minimize your adventures' overall environmental impact. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Reuters
21-03-2025
- Business
- Reuters
Regulations needed to spur airlines to use sustainable fuel, Japan oil refiners group head says
TOKYO, March 21 (Reuters) - Japanese oil refiners believe concrete regulations and frameworks are needed to encourage airlines to use sustainable aviation fuel and develop supply chains to support decarbonization efforts, the head of the industry lobby group said on Friday. Cosmo Energy Holdings (5021.T), opens new tab will launch Japan's first domestic production of SAF in April, a step toward the country's goal of replacing 10% of jet fuel with a cleaner alternative, though cost-cutting challenges remain. here. Japanese refiners must supply SAF equivalent to 10% of their aviation fuel sales by 2030 as part of the country's efforts to combat climate change, which aligns with global initiatives to cut carbon dioxide emissions from airplanes. But no mandatory scheme has been set for airlines, and the oil industry believes a system similar to the one applied to suppliers is also needed for consumers. "Regulations and frameworks on the supply side are relatively advanced, and we are making progress in building a supply chain," Shunichi Kito, president of the Petroleum Association of Japan, told a news conference. "But I believe that the user side, in this case, the airlines, also need similar regulations and frameworks," he added. Kito, who is also the president of Japan's second-largest oil refiner, Idemitsu Kosan (5019.T), opens new tab, emphasized energy transition toward carbon neutrality requires a transformation across the entire supply chain -- from suppliers to off-takers -- making it different from conventional production and sales activities. "This will be a key test in developing a fuel supply chain toward carbon neutrality," he said, adding that achieving this will require understanding from airlines and consumers as well as government support in determining the appropriate cost-sharing proportions and implementation methods.
Reuters
07-03-2025
- Business
- Reuters
Cosmo to launch Japan's first sustainable aviation fuel production in April
TOKYO, March 7 (Reuters) - Cosmo Energy Holdings is set to launch Japan's first domestic production of sustainable aviation fuel in April, a step toward the country's goal of replacing 10% of jet fuel with a cleaner alternative, though cost-cutting challenges remain. Cosmo (5021.T), opens new tab, the nation's third-largest refiner, will produce SAF from used cooking oil at its Sakai refinery in western Japan. "Our goal is to boost SAF supply to 300,000 kilolitres by 2030 through domestic production and imports," Takeshi Takada, general manager of new business development, said. Japanese refiners must supply SAF equivalent to 10% of their aviation fuel sales by 2030, as Japan works to combat climate change and aligns with global efforts to cut carbon dioxide (CO2) emissions from airplanes. A company official said 300,000 kl (1.89 million barrels) would be sufficient to meet 10% of Cosmo's jet sales. Cosmo plans to produce 30,000 kl of SAF annually at Sakai, supply 150,000 kl from its Sakaide site in western Japan using bioethanol and import 120,000 kl from Thailand's Bangchak ( opens new tab and other Asian suppliers, Takada said. The refiner aims to build expertise and customer relationships by launching production and sales ahead of competitors, despite challenges in reducing costs, securing raw materials and locking in buyers, he said. The Sakai project, targeting production of 24,000 kl in fiscal 2025 after accounting for site maintenance, has already secured most customers, including Japan Airlines (JAL) (9201.T), opens new tab, ANA (9202.T), opens new tab and DHL. Cosmo's next goal is to start SAF production at Sakaide by around 2029, with a final investment decision expected in fiscal 2026. Both projects have secured government subsidies, covering about half of capital expenditures. Cosmo declined to disclose Sakai's production costs or SAF prices, but the company expects to turn a profit with the help of subsidies. SAF is estimated to cost three to five times more than conventional jet fuel. While higher production volume could lower distribution costs, significant cost reductions are unlikely due to raw material constraints, which make up a large portion of expenses, Takada said. "Japan's subsidy scheme is at a medium level by global standards ... Countries will compete to offer attractive subsidy schemes for SAF deployment to maintain hub airport status," Takada said. Recently, the Sakaide plant and three other projects secured part of 340 billion yen ($2.3 billion) in government subsidies over five years to support local SAF production. The projects include Eneos' (5020.T), opens new tab 400,000 kl facility in Wakayama, Idemitsu Kosan's (5019.T), opens new tab 250,000 kl plant in Yamaguchi and Taiyo Oil's 200,000 kl project in Okinawa, all still in the design phase. Idemitsu has also secured a separate subsidy for a 100,000 kl project in its Chiba refinery near Tokyo. These projects are key to boosting domestic production and meeting Japan's estimated SAF demand of 1.7 million kl by 2030. ($1 = 147.5700 yen)
Reuters
27-01-2025
- Business
- Reuters
Japan's Cosmo to supply domestic SAF to 2 airlines from April
TOKYO, Jan 27 (Reuters) - Cosmo Energy Holdings (5021.T), opens new tab said on Monday it will start supplying sustainable aviation fuel (SAF) to Japan Airlines (JAL) (9201.T), opens new tab and All Nippon Airways (ANA) (9202.T), opens new tab from April, marking the first supply of domestically produced green fuel. Cosmo, Japan's third-biggest oil refiner, plans to start trial SAF production at its Sakai refinery in Osaka as early as this week, a company spokesperson told Reuters. It is aiming for full-scale production of 30,000 kilolitres per year beginning in April, they added. The refiner, in partnership with two other companies, plans to produce SAF from used cooking oil, marking the first large-scale production in Japan. Cosmo declined to disclose details, including the pricing and volume of SAF it plans to supply to the Japanese airlines.
