Japanese Cardboard Company to Pioneer Sustainable Jet Fuel from Construction Waste by 2027

Rengo, a Japanese cardboard manufacturer, has announced ambitious plans to produce sustainable aviation fuel (SAF) from construction waste by 2027.

As first reported by Nikkei Asia, the company's investment of around 20 billion yen ($133 million) represents a significant step in Japan's efforts to reduce carbon emissions in the aviation sector.

Producing Sustainable Jet Fuel

SAF, known for emitting 70-90% less carbon dioxide over its lifecycle than conventional jet fuel, has emerged as a critical solution in the quest for sustainable air travel.

Rengo's endeavor is consistent with Japan's goal of increasing SAF usage to 10% of domestic airline fuel consumption by 2030, in line with global efforts to combat climate change.

While ethanol derived from crops such as corn and plants has traditionally been the primary source of SAF, Rengo's innovative approach involves repurposing construction waste, which aims to reduce environmental impact while tapping into Japan's industrial resources.

This shift addresses concerns about potential disruptions to Japan's food supply chain caused by traditional ethanol production methods.

It is important to note that in 2023, Japan's Ministry of Economy, Trade, and Industry (METI) made a significant change to energy regulations. They released a new rule allowing the use of lower-carbon ethanol until 2028.

This move helps Japan meet its climate goals through the consumption of lower-carbon ethanol. Additionally, for the first time, US ethanol can now fully enter Japan's biofuel market.

Rengo's subsidiary, Taiko Paper Mfg., will lead the initiative, leveraging its manufacturing and waste management expertise. The company intends to install cutting-edge saccharification, fermentation, and distillation facilities at its main plant to produce ethanol from construction waste.

Rengo's venture, with a target production volume of 20,000 kiloliters per year, is well-positioned to contribute significantly to SAF supply chains.

Waste Wood and Industrial Waste Recovery

Aside from environmental benefits, Rengo anticipates strategic benefits from expanding its waste wood and industrial waste recovery business. While initial production costs may be higher than plant-derived ethanol, scalability and increased supply volume could give Rengo a competitive advantage in the long run.

Japan's aviation industry, which lags behind its European counterparts and the United States in SAF development, stands to benefit from Rengo's pioneering efforts. Incorporating construction waste into SAF feedstock promises to improve procurement network stability, resulting in a more sustainable and reliable source for the industry.

Rengo's projected production volume by 2030 is expected to meet about 1% of SAF's domestic demand, implying a significant market impact. This move demonstrates the company's commitment to sustainability and proactive approach to climate challenges.

Meanwhile, other players in Japan's energy landscape are adopting sustainable solutions. JGC Holdings, a major player in plant construction, plans to begin domestic SAF production using waste cooking oil, highlighting a growing trend in the industry.

However, challenges remain in obtaining waste cooking oil, necessitating the development of strong collection systems.

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