Generic Hero BannerGeneric Hero Banner
Latest market news

Japan’s Daio Paper to explore biorefinery

  • Market: Biofuels, Biomass, Petrochemicals
  • 13/05/24

Japanese paper manufacturer Daio Paper is planning a trial biorefinery, aiming to begin commercial production of sustainable aviation fuel (SAF), second-generation bioethanol and biodegradable plastic feedstock by the April 2032-March 2033 fiscal year.

Daio, in partnership with domestic biorefinery venture Green Earth Institute (GEI), plans to develop technology to demonstrate manufacturing the bioproducts by 2030. Daio Paper plans to use wooden biomass, waste paper and paper sludge as feedstock. The company declined to disclose any planned commercial output capacity, as well as location of the biorefinery. The project is financed by Japan's state-owned research institute Nedo.

Daio Paper is attempting to achieve decarbonisation, while weakening paper demand has forced the industry to seek new business opportunities.

Fellow Japanese paper producer Nippon Paper has also tried to develop biorefinery technology with GEI, targeting to begin commercial production of bioethanol for SAF and petrochemical feedstock by 2027-28.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

Japanese firms advance LCO2/methanol carrier project


03/07/25
News
03/07/25

Japanese firms advance LCO2/methanol carrier project

Tokyo, 3 July (Argus) — Japanese shipping firm Mitsui OSK Lines (Mol) and shipbuilder Mitsubishi Shipbuilding have made progress in developing an ocean-going liquified CO2 (LCO2) and methanol carrier, which would play a key role in establishing the country's carbon capture, utilisation and storage (CCUS) value chains. Mol and Mitsubishi have obtained approval in-principle (AiP) from Japanese classification society Class NK for their design concept of a LCO2/methanol carrier. The vessel would ship CO2 out of Japan and deliver CO2-based synthetic methanol (e-methanol) on return voyages to the resource-poor country, the companies announced on 30 June. The AiP certifies that the basic design of the vessel meets international regulation standards, such as technical requirements, as well as relevant safety restrictions covering the transportation of dangerous chemicals and liquefied gases in bulk. This is the world's first issuance of an AiP for a LCO2/methanol carrier, Class NK said. The approval is a major step forward for the companies, which hope to develop the vessel for commercialisation. The target date for its commissioning is still unclear. Mol expects the carrier to help meet Japan's growing demand for CO2 exports and e-methane imports with higher transport efficiency, unlike the use of a dedicated vessel for CO2 or methanol, which results in empty-cargo operation on half of the trips. E-methanol can be produced using CO2 and renewable hydrogen, which will contribute to decarbonising a variety of industries including the maritime shipping sector. Mol has previously invested in US synthetic fuel (e-fuel) producer HIF Global, while working with Japanese refiner Idemitsu and HIF subsidiaries HIF USA and HIF Asia Pacific to develop supply chains for synthetic fuel and e-methanol as well as CO2. HIF plans to produce around 4mn t/yr of e-methanol equivalent by 2030 at its production sites in Tasmania in Australia, Matagorda in the US, Magallanes in Chile and Paysandu in Uruguay by using green hydrogen and CO2, Mol has said. CCUS value chains would help fossil fuel-reliant Japan reduce its greenhouse gas (GHG) emissions by 60pc by the April 2035 to March 2036 fiscal year and by 73pc by 2040-41, against 2013-14 levels, before achieving the net-zero emissions by 2050. The Mol group, for its part, aims to reduce emissions intensity in transportation by 45pc against 2019 levels by 2035, as it works towards overall net-zero emissions by 2050. Japan's GHG emissions totalled 1.017bn t of CO2 in 2023-24 , down by 4.2pc from a year earlier to the lowest in 34 years, according to the country's environment ministry. This also reflected a 27pc decline against a 2013-14 baseline. By Japan Newsdesk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Australia’s Licella aims for SAF project FID in 2026


03/07/25
News
03/07/25

Australia’s Licella aims for SAF project FID in 2026

Sydney, 3 July (Argus) — Australian technology developer Licella is aiming for a final investment design (FID) in the second half of 2026 for its proposed 60mn litres/yr (l/yr) biorefinery at the Isis sugar mill, 265km north of Queensland's state capital Brisbane. Project Swift has engaged contractors for engineering and site investigations after winning an A$8mn ($5.3mn) federal grant last year , a process expected to take 18–24 months and including detailed initial engineering ahead of an FID. The firm plans to use its own its Cat-HTR hydrothermal liquefaction technology for turning sugarcane waste, known as bagasse, into about 40mn l/yr of sustainable aviation fuel and other products. Licella has welcomed the Queensland government's recent announcement of a parliamentary inquiry into using sugarcane products for biofuel projects , saying clear, enabling policy will be needed to bring investment and opportunity to the state at scale. Queensland's biofuel output is largely produced by Singapore-listed Wilmar's Sarina biorefinery, which can make 60mn l/yr of ethanol using about 220,000 t/yr of molasses from the region's sugar mills. About two thirds of this is used in vehicle fuel, Wilmar has said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

HVO demand may hit record as EU rules tighten


02/07/25
News
02/07/25

HVO demand may hit record as EU rules tighten

London, 2 July (Argus) — Stricter biofuel mandates in northwest Europe may push hydrotreated vegetable oil (HVO) consumption to record highs in 2026, as suppliers shift away from conventional biodiesel to meet EU targets. In Germany alone, demand could rise by 1.5mn t — nearly quadruple 2025 levels — according to Argus Consulting. To bypass the 7pc cap on blending conventional methyl ester biodiesel into diesel, suppliers are turning to HVO Class II, boosting trading on the Intercontinental Exchange (Ice) ahead of rising renewables targets next year. A total of 717,500t of used cooking oil-based HVO (Class II) futures traded on Ice in June, up from 140,100t in May and surpassing the previous record of 232,000t in March. The Ice contract — cash-settled and based on Argus spot assessments — launched in 2022 as both a differential to Ice low-sulphur gasoil and outright, with the differential more actively traded. Open interest now extends to June 2026. December positions total 99,000t, close to the 109,000t held in the more liquid Ice Ucome biodiesel contract, Ice data show. Since 20 June, the forward curve has remained in contango, peaking in the fourth quarter. This reflects expectations of rising demand ahead of 2026, when biofuels targets increase in key markets such as the Netherlands and Germany , which are adopting greenhouse gas (GHG) reduction-based mandates. Both recently published draft legislation to transpose the EU's revised Renewable Energy Directive (RED III), proposing to abolish double-counting of Annex IX feedstocks. Obligated parties will need a broader fuel mix to meet higher targets, supporting waste-based HVO demand. Spot market activity has also picked up. Argus Open Markets (AOM) volumes for HVO Class II have reached 36,000t so far in 2025, nearly matching the 2024 total of 44,000t. Trades of palm oil mill effluent-based HVO (Class IV) have hit 22,000t, already exceeding last year's 16,000t. The increase in spot demand has been supported by changes to renewable fuel ticket carryover rules. The Netherlands cut its allowance from 25pc to 10pc for 2025 compliance, reducing flexibility for obligated blenders and prompting more near-term buying. Strong demand and tight supply pushed HVO Class II premiums to a seven-month high in June, peaking at $1,095/m³ on 20 June and holding firm into July. In April, Germany's federal agriculture and food office (BLE) suspended an HVO producer's access to the Nabisy biomass registry and froze Proof of Sustainability (PoS) documents during an investigation. These documents are required to log fuels on compliance platforms and count them towards RED targets. Prices rose following the suspension and remained supported even after the PoS documents were reinstated under the "protection of confidence" principle, as delays and reduced supply continued. Trade flows have also been reshaped by EU anti-dumping duties imposed in February on Chinese biodiesel and HVO. Just 95,000t of HVO arrived at the Amsterdam-Rotterdam-Antwerp (ARA) hub in the second quarter, down from 155,000t a year earlier, according to Kpler data. Arbitrage for standard 5,000t parcels has largely disappeared for Chinese producers facing duties of 21.7pc or more, although flows remain viable for exporters subject to the reduced 10pc rate. Anti-dumping and anti-subsidy duties are already in place for HVO and biodiesel of US and Canadian origin. While US-origin HVO flows to the UK remain unaffected — EU duties were removed in 2022 — the UK launched an anti-dumping investigation into US HVO in March. . By Evelina Lungu HVO (Class II) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Bangkok Airways starts using SAF on commercial flights


02/07/25
News
02/07/25

Bangkok Airways starts using SAF on commercial flights

Singapore, 2 July (Argus) — Bangkok Airways started using sustainable aviation fuel (SAF) on its commercial flights on 1 July, the company said. The move aims to reduce carbon emissions and support Thailand's green aviation goals. The airline will use a blend of 1pc SAF and 99pc Jet A-1 fuel on international flights departing from Bangkok's Suvarnabhumi Airport to destinations including Phnom Penh, Siem Reap, Luang Prabang and the Maldives. Each SAF-powered flight will cut CO2 emissions by an average of about 128 kg. Bangkok Airways trialled SAF on a pilot flight between Samui and Bangkok in 2024. The airline's environmental strategy focuses on climate change and waste management, efficient resource use and adopting alternative energy sources. The company is improving fuel efficiency and reports its corporate carbon footprint across Scope 1-3 emissions. By Shien Ern Tan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more