Japan’s Sustainable Aviation Fuel Initiative: A Step Towards Decarbonisation

Japan turns household cooking oil into aviation fuel

Japan is building a nationwide collection system to turn used cooking oil into sustainable aviation fuel. Cities are partnering with refineries, supermarkets are installing drop-off points, and residents are being given special containers to collect waste oil at home. This is not a pilot scheme. It is part of Japan’s wider effort to create a domestic SAF supply chain and meet aviation decarbonization targets set for 2030.

The shift matters because it redefines household waste oil as a strategic resource. For years, used cooking oil was either poured down drains or thrown away. Now it is being collected, transported, refined, and sold as jet fuel. The approach shows how circular economy thinking is moving from theory to infrastructure.

UK businesses should pay attention. Japan’s experience offers early evidence of what happens when governments, airlines, and local authorities coordinate to build alternative fuel supply chains. The challenges Japan faces around volume, cost, and logistics are the same ones that will shape SAF availability and pricing in the UK and Europe over the next decade.

Shimonoseki and Tokyo lead municipal collection schemes

In Shimonoseki, Cosmo Oil signed an agreement with the city to collect used cooking oil from homes and businesses. The collected oil will be converted into SAF by Saffaire Sky Energy, a specialist producer, and then marketed through Cosmo Oil Marketing. The partnership covers the entire supply chain, from collection through to refining and sales.

Meanwhile, Tokyo launched the “Fry to Fly” initiative to mobilize residents across the capital. Authorities distributed 13,000 special funnels to make it easier for households to collect and store waste oil. Supermarkets and neighborhood collection points were set up to receive the oil once residents had gathered it. According to France 24 reporting, collection volumes doubled after the awareness campaign began.

However, the scale remains limited. Even if Tokyo collected all recoverable household oil, it would cover only around a quarter of Japan’s 2030 SAF target. This gap highlights the central problem: household collection can contribute to supply, but it cannot solve the entire demand equation on its own.

Yokohama City joined the effort with similar messaging. Officials stated that SAF made from waste cooking oil can cut life-cycle CO2 emissions by approximately 80% compared with conventional aviation fuel. This emissions reduction is why local governments are willing to invest in collection infrastructure and public engagement.

Airlines build partnerships to secure SAF feedstock

Japan Airlines has launched its “Let’s Fly with Used Cooking Oil” project to secure raw material for SAF production. The airline set a target to replace 10% of onboard fuel with SAF by 2030. To meet this goal, JAL is working with supermarkets and other collection points to recover household waste oil that would previously have been discarded.

This approach reflects a broader trend. Airlines are no longer waiting for fuel suppliers to solve the SAF availability problem. Instead, they are actively participating in feedstock collection and supply chain development. For JAL, securing access to waste cooking oil is a commercial necessity tied directly to its decarbonization commitments.

ENEOS, one of Japan’s largest energy companies, is also responding to the SAF supply challenge. The company is building import capacity while developing a large-scale domestic refinery system. This dual approach indicates that Japan recognizes it will need both domestic production and international supply to meet its aviation fuel goals.

Consequently, the SAF market in Japan is taking shape around a mix of local collection, industrial refining, and cross-border fuel trade. The model emerging is not self-sufficient but rather a coordinated effort to maximize available feedstock from multiple sources.

Collection volumes fall short of national SAF demand

Despite the success of municipal collection programs, household waste oil alone cannot satisfy Japan’s SAF requirements. Reuters-backed coverage confirmed that the available volume from households is far below what the aviation sector will need by 2030. Therefore, Japan will require a combination of household collection, commercial oil recovery, imports, and large-scale industrial production.

The challenge is both logistical and economic. Collecting small quantities of oil from thousands of households is labor-intensive and costly. Refining that oil into SAF adds further expense. Furthermore, airlines need fuel at a price point that does not make flying prohibitively expensive. Big increases in volume, demand, and affordability are needed before SAF becomes a mainstream option.

Japan’s experience demonstrates that local collection schemes can work, but they are not sufficient by themselves. The gap between what households can provide and what airlines need is substantial. This reality is forcing policymakers and industry to think beyond residential collection and toward integrated supply strategies.

For UK businesses, this is a preview of what SAF supply chains might look like over the next decade. Collection infrastructure, refining capacity, and cost structures will all need to evolve in parallel. Companies involved in logistics, waste management, or fuel supply should watch how Japan scales these programs and where the bottlenecks emerge.

Essential details about Japan’s cooking oil SAF program

• Shimonoseki partnered with Cosmo Oil to collect household and commercial cooking oil for conversion into SAF through Saffaire Sky Energy.
• Tokyo distributed 13,000 funnels to residents and doubled collection volumes after launching its “Fry to Fly” awareness campaign.
• Japan Airlines aims to replace 10% of its fuel with SAF by 2030 and is working with supermarkets to secure waste cooking oil feedstock.
• SAF made from waste cooking oil can reduce life-cycle CO2 emissions by approximately 80% compared with conventional jet fuel, according to Yokohama City.
• Even with full household participation, Tokyo’s current collection effort would cover only about a quarter of Japan’s 2030 SAF target.
• ENEOS is building both import capacity and large-scale domestic refining infrastructure to meet growing SAF demand.
• Japan’s strategy combines household collection, commercial oil recovery, imports, and industrial production to meet aviation fuel goals.

What UK businesses should consider about SAF supply chains

Japan’s approach reveals the complexity of building SAF supply infrastructure. The programs are working at a municipal level, but scaling them nationally requires coordination across government, industry, and consumers. This is not unique to Japan. UK businesses in aviation, logistics, and fuel supply will face similar challenges as SAF mandates tighten and airline decarbonization commitments come due.

For companies tendering for public sector contracts, SAF availability and pricing could become a factor in supplier selection. PPN 06/21 already requires carbon reduction plans from suppliers. As SAF becomes more widely available, procurement criteria may start to favor suppliers with lower aviation emissions. This shift will matter for businesses that rely on air freight or have significant travel footprints.

Additionally, the cost structure of SAF remains a concern. Collecting, refining, and distributing SAF from waste cooking oil is more expensive than producing conventional jet fuel. Until production scales and costs fall, SAF will carry a price premium. Businesses that depend on air travel or freight should factor this into their planning. Carbon reporting under frameworks like the Environmental Reporting Guidelines will increasingly need to account for SAF use and associated costs.

There is also an opportunity for businesses involved in waste management and circular economy activities. If the UK follows a similar path to Japan, waste cooking oil could become a valuable commodity rather than a disposal problem. Companies that can aggregate, transport, and supply feedstock to refineries may find new revenue streams. However, this will require investment in collection infrastructure and partnerships with fuel producers.

Furthermore, businesses should monitor how SAF mandates develop in the UK and EU. The UK government has committed to achieving at least 10% SAF in the aviation fuel mix by 2030. This target mirrors Japan’s ambitions and suggests that similar supply chain challenges will emerge here. Early engagement with net-zero planning can help businesses anticipate these changes and adjust their operations accordingly.

Finally, the Japan case shows that government policy and local action are both needed to build SAF supply. Businesses should not assume that SAF will simply become available at scale without coordinated effort. Engaging with industry bodies, participating in collection schemes, and understanding feedstock supply dynamics will become increasingly important as the market develops.

Where to find further information on SAF and aviation decarbonization

The UK government’s Jet Zero Strategy sets out the policy framework for aviation decarbonization and SAF deployment in the UK. It includes details on mandates, targets, and support mechanisms for SAF production.

The Department for Transport also provides guidance on SAF mandates, including consultation documents and policy updates. These resources are essential for businesses that need to understand regulatory timelines and compliance requirements.

For technical information on SAF feedstocks and production pathways, the International Air Transport Association (IATA) publishes regular reports and fact sheets. The IATA SAF resources cover production standards, certification, and global supply developments.

Businesses looking to understand carbon accounting for aviation emissions should refer to the UK government’s environmental reporting guidelines. These explain how to measure and report aviation-related emissions, including the treatment of SAF in carbon calculations.