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Japan’s Itochu buys trial renewable diesel from Neste

  • Market: Emissions, Oil products
  • 01/06/21

Japanese trading house Itochu is importing renewable diesel from Finnish biofuels producer Neste in a trial programme as part of its decarbonisation efforts, targeting commercial use in east Japan's Kanagawa prefecture later this month.

Itochu has signed a purchase agreement with Neste to buy 100 kilolitres (630 bl) of renewable diesel made from waste edible oils and residues of plant oils. Itochu's 53.97pc energy subsidiary Itochu Enex will deliver the renewable diesel to the trading house's 50.1pc retail subsidiary FamilyMart, which plans to use the fuel for its commercial vehicles in Kanagawa's Yokohama city.

FamilyMart aims to completely replace diesel in some of its commercial vehicles in Yokohama. But Itochu has not decided whether to import more renewable diesel as it is trialling its operations with this contract with Neste.

Japanese companies are targeting to reduce CO2 emissions to achieve Japan's 2050 carbon neutrality goal. Petrochemical producer Mitsui Chemicals and trading house Toyota Tsusho have already signed an agreement to buy bio-naphtha from Neste during October 2021-March 2022 to produce bio-petrochemical products.


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