Japan's Cosmo Oil Converts SAF By-Product into Chemical Feedstock

Cosmo Oil has partnered with three Japanese companies to convert sustainable aviation fuel (SAF) by-products into chemical feedstock. This initiative aims to reduce carbon emissions in the chemicals and plastics supply chain.

The partnership involves Cosmo Oil, Maruzen Petrochemical Co., UBE-Maruzen Polyethylene, and Saffaire Sky Energy. Saffaire Sky Energy will manufacture the naphtha from used cooking oil at Cosmo Oil's Sakai Refinery in Osaka. The companies plan to use this bio-based naphtha as a lower-carbon alternative for chemicals and plastics production.

The SAF facility operated by Saffaire Sky Energy on the premises of Cosmo Oil's Sakai Refinery began production in fiscal 2025. The used cooking oil-derived naphtha has obtained certification under the International Sustainability and Carbon Certification (ISCC) system, allowing the companies to track its sustainability attributes.

The initiative is part of a larger effort to establish a domestic supply chain for SAF made from used cooking oil in Japan. Saffaire Sky Energy stated that this project creates value beyond aviation by utilizing the SAF production by-product as a chemical feedstock.

The four companies plan to increase supply volumes and develop additional applications for the material, targeting industries including chemicals, textiles, and packaging.