Hong Kong headed EcoCeres, Inc., an Asia-based innovative biorefinery company and Japan-based Euglena Co., Ltd (Euglena), a leading innovative biotechnology company, have announced the signing of a Memorandum of Understanding (MOU) to collaborate in promoting the use of sustainable aviation fuel (SAF) and Hydrotreated Vegetable Oil (HVO) in Japan.
According to a statement, this strategic partnership aims to advance the adoption of environmentally friendly alternatives in the Japanese aviation and road transportation sectors.
Euglena has established Japan’s first demonstration plant for producing SAF and Renewable Diesel Fuel under its brand “SUSTEO” using used cooking oil (UCO) and microalgae (Euglena) oil as key feedstocks.
The company has actively built a distribution network across land, sea, and air mobility, and aims to scale up microalgae production as a sustainable feedstock option to support future biofuel needs.
EcoCeres is a leading renewable fuel supplier to global markets. The company manufactures sustainable aviation fuel (SAF) and renewable diesel (aka HVO) using proprietary technology at a facility in China with an annual production capacity of 350,000 tonnes of SAF/HVO.
Both renewable fuel products and the facilities have been certified to the International Sustainability and Carbon Certification (ISCC) standard.
Furthermore, a new SAF/HVO biorefinery with an annual design capacity of 420,000 tonnes is currently under construction in Malaysia.
Meet rapidly growing HVO demand
The demand in Japan for renewable diesel is growing rapidly. To meet demand Euglena has imported neat HVO from suppliers such as EcoCeres, prepared it to meet diesel specifications and Japanese customers’ demand, and supplied it to Japanese customers under its SUSTEO brand.
Euglena has been supplying SUSTEO as fuel for diesel-powered vehicles in some of the races entered by Mazda Motor Corporation for some time.
The SUSTEO used in the Super Taikyu Series since 2023, has all been based on EcoCeres’ renewable diesel. It was also used in the final round of the ENEOS Super Taikyu Series at Fuji Speedway from November 15 to 17, 2024, in the MAZDA3 Bio concept from MAZDA SPIRIT RACING in the ST-Q class.
The performance was comparable to that of petroleum-derived diesel fuel. As SUSTEO’s sales and presence in the biofuel market increase, customers in Japan expect a stable supply of SUSTEO.
This strategic partnership, with EcoCeres as a supplier of neat renewable diesel, and Euglena as a SUSTEO marketer and seller ensures that customers in Japan have a stable and reliable supply.
Facilitate SAF deployment
Furthermore, EcoCeres and Euglena will combine their expertise, resources, and networks to facilitate the widespread deployment of SAF, reducing greenhouse gas (GHG) emissions and promoting the transition towards cleaner energy sources.
We are excited to partner with Euglena in this important endeavor to expand the use of Sustainable Aviation Fuel and Renewable Diesel in Japan. Our hope is not only to fulfill the commitments outlined in this MoU but to exceed them, setting new standards for sustainability and inspiring others to join us on this important journey, said James Ni, CEO of EcoCeres.
Both companies are committed to leveraging their strengths to drive innovation, research, and development initiatives that will accelerate the commercialization and adoption of SAF and HVO in Japan, ultimately contributing to the country’s sustainability goals and environmental objectives.
By working together, we can make significant strides towards a more sustainable future for the aviation industry and beyond. Today, we have taken a big step towards contributing to Japan’s greenhouse gas reduction goal. SUSTEO has moved from the introduction phase to continuous use and supply expansion. With the support of the Tokyo Metropolitan Government, SUSTEO is already being used continuously in large heavy machinery at redevelopment construction sites in the Nihonbashi, Otemachi, and Marunouchi areas, which are the front lines of Tokyo, and in popular tourist buses. It will be needed even more in the future. Thanks to our strong partnership with EcoCeres, we are now able to stably provide SUSTEO in the amount needed to customers who want to use it, said Mitsuru Izumo, Founder and President of Euglena.