Neste, ITOCHU and GS Caltex Collaborate to Make the First Batch of CORSIA-Certified Sustainable Aviation Fuel Available for Purchase in Japan

(Neste) Neste, ITOCHU and GS Caltex have collaborated to make the first batch of CORSIA-eligible ISCC-certified sustainable aviation fuel (SAF) available for purchase at Narita International Airport in Japan. This is the first time that CORSIA-certified SAF was made available for airlines’ regular purchase at commercial scale, well ahead of the start of CORSIA’s mandatory phase in 2027.

As part of the collaboration, Neste supplied over 1,000 tons of neat (i.e. unblended) CORSIA-eligible and ISCC-certified Neste MY Sustainable Aviation Fuel™ to the refinery of GS Caltex in Yeosu, South Korea to be blended with conventional jet fuel. This marked the first time SAF was blended locally in South Korea. The blended SAF was then transported to Japan for ITOCHU to supply it into the fuel storage facilities at Narita International Airport. The first batch of the fuel will be offered to All Nippon Airlines (ANA) and Japan Airlines (JAL).

“Sustainable aviation fuel is a readily available solution for reducing greenhouse gas emissions from air travel. CORSIA-eligible SAF provides airlines like ANA and JAL an opportunity to credibly reduce aviation emissions. This milestone shows how we are working together with partners like ITOCHU and GS Caltex as well as local governments to develop the supply chains for SAF to make the fuel even more readily available in the Asia-Pacific region and around the world. We are looking forward to further expanding our cooperation with our partners to increase our supply of SAF to airlines,” said Alexander Kueper, Vice President, Renewable Aviation Business at Neste.

“In collaboration with Neste and GS Caltex – our trusted partners – we have successfully established a groundbreaking supply chain for the delivery of CORSIA Eligible Fuel to airports in Japan. We firmly believe that this initiative will significantly contribute to resolving the aviation fuel shortage in Japan. Furthermore, it marks a pivotal step towards the decarbonization of the aviation industry. Looking ahead, we are dedicated to working alongside Neste and GS Caltex to ensure a consistent supply of aviation fuel while advancing our shared goal of decarbonization," said Tetsuya Yamada, Executive Officer, Chief Operating Officer, Energy Division at ITOCHU Corporation.

“This is a great example of working together to help achieve aviation’s net-zero carbon emissions goal, where Neste, ITOCHU and GS Caltex have built a new value chain based on their respective expertise, with active support from the Korean and Japanese governments. This was achieved based on a shared commitment to help the aviation industry with its efforts to decarbonize. Through this business development, the customers will be able to receive a stable supply of CORSIA-eligible SAF ahead of the start of CORSIA’s mandatory phase in 2027, contributing to airlines taking a further step towards reducing their carbon emissions. Moving forward, GS Caltex will further expand its cooperation with partners, Neste and Itochu, to contribute to the decarbonization of the aviation industry in Korea, Japan and globally,” said S. H. Lee, Executive Vice President, Head of Supply & Trading Business Unit at GS Caltex.

CORSIA-eligible SAF
CORSIA is a recognized scheme offering a harmonized way to reduce CO₂ emissions from international aviation to curb its impact on climate change. It was developed by the International Civil Aviation Organization (ICAO), and the implementation of CORSIA is currently in the first, voluntary phase. Once certified by an ICAO-approved sustainability certification scheme, SAF qualifies as a CORSIA Eligible Fuel (CEF) and can be used by an airline to meet the CO₂ emission reduction allocation requirements under CORSIA. In 2022, Neste supplied the first-ever batch of CORSIA-certified SAF as part of a pilot of certifying SAF as a CORSIA Eligible Fuel. Using unblended Neste MY Sustainable Aviation Fuel™ can reduce greenhouse gas emissions (GHG) by up to 80%* over the fuel’s life cycle, compared to using conventional jet fuel.

*) When used in neat form (i.e. unblended) and calculated with established life cycle assessment (LCA) methodologies, such as CORSIA methodology.

Neste (NESTE, Nasdaq Helsinki) uses science and innovative technology to transform waste and other resources into renewable fuels and circular raw materials. The company creates solutions for combating climate change and accelerating a shift to a circular economy. Being the world’s leading producer of sustainable aviation fuel (SAF) and renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals, the company aims to help its customers to reduce their greenhouse gas emissions by at least 20 million tons annually by 2030.

The company’s ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe. Neste is committed to reaching carbon-neutral production by 2035, and will reduce the carbon emission intensity of sold products by 50% by 2040. Neste has also set high standards for biodiversity, human rights and the supply chain. The company has consistently been included in the CDP and the DJSI lists of the world’s most sustainable companies. In 2023, Neste's revenue stood at EUR 22.9 billion. Read more: neste.com

ITOCHU in brief

The history of ITOCHU Corporation dates back to 1858 when the Company's founder Chubei Itoh commenced linen trading operations. Since then, ITOCHU Corporation has evolved and grown over 160 years. With approximately 100 bases in 62 countries, ITOCHU Corporation, one of the leading sogo shosha, is engaging in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, general products, realty, information and communications technology, and finance, as well as business investment in Japan.

GS Caltex in brief

GS Caltex, established in 1967 as South Korea's first private oil refinery, has diversified and differentiated its business portfolio in refining, petrochemicals and lubricants through bold investments and technological innovations. GS Caltex operates a major refinery in Yeosu, South Korea, with a daily crude run capacity of 800,000 barrels, the world’s 4th largest single-site oil refinery. The company produces competitive products with good technology, such as high-quality petroleum products, aromatics, lubricants, olefins, and polyethylene and exports products to about 50 countries around the world. As of 2023, its total business sales are about USD 37.2 billion, and its operating profit is about USD 1.3 billion.

While being reborn as a Lower Carbon Refinery through carbon reduction in existing business areas, GS Caltex is expanding into lower carbon businesses for energy transition, including hydrogen · CCUS, bio, and recycling. Through their subsidiaries, the company extends the network and sustainable impact, aiming to become a leading comprehensive energy company in the energy and chemical sectors and continue creating sustainable value. READ MORE