TOYO Selected for NEDO Project, Advancing SAF with Velocys’ FT Technology and TOYO’s Methanol Process

September 03, 2025

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(Velocys) Toyo Engineering Corporation (President and CEO: Eiji Hosoi, TOYO) has been selected by the New Energy and Industrial Technology Development Organization (NEDO) for its initiative, “Development of Production Technologies for Sustainable Aviation Fuel (SAF), etc.”. TOYO’s proposal, “Feasibility Study on SAF via Gasification FT Synthesis Using Expanded Feedstocks and eSAF Production”, was adopted under the category “Development of SAF Production Technologies Utilizing Diverse Feedstocks”.

With global air traffic projected to rise and the urgent need to reduce greenhouse gas (GHG) emissions, demand for SAF is expected to grow rapidly in the coming years. This project will evaluate the technical and economic feasibility of producing SAF from a wide range of feedstocks—including municipal solid waste—via two distinct pathways: 1) gasification Fischer-Tropsch (FT) synthesis and 2) methanol synthesis and conversion to SAF.

TOYO’s feasibility study will include Velocys’s advanced FT synthesis technology and its own proprietary methanol production technology, developed through decades of engineering innovation.

The study will run for approximately 18 months, from FY2025 through FY2026, and will consider both domestic and international site conditions.

Project Objectives

Quantify SAF supply potential from diverse feedstocks via FT synthesis and methanol-based pathways
Compare the technical and economic characteristics of both production routes
Evaluate business potential of co-producing synthetic fuels such as gasoline and diesel
Identify key challenges and development directions for eSAF using renewable hydrogen and captured CO₂

TOYO has previously conducted pilot-scale continuous SAF production via gasification plus FT synthesis and contributed to studies for building an integrated SAF supply chain under NEDO’s sponsorship.

Going forward, TOYO will leverage its technological expertise and global partnerships to help establish the technological foundation needed for the widespread adoption of sustainable aviation fuel.

FT (Fischer-Tropsch) synthesis is a catalytic chemical reaction that converts carbon monoxide (CO) and hydrogen (H₂) into liquid fuels.

Velocys is a company based in UK and US that develops technologies for producing synthetic fuels, including Sustainable Aviation Fuel (SAF). The company specializes in microchannel reactor technology based on the Fischer-Tropsch process. TOYO concluded a comprehensive collaboration agreement with Velocys in 2021 in the field of renewable fuels such as SAF.

eSAF refers to a type of synthetic aviation fuel (SAF) produced using electrolytic hydrogen and captured CO₂ as feedstocks, and is classified as an e-fuel. READ MORE