Neste and ITOCHU Forge Licensing Agreement to Boost Renewable Diesel Distribution in Japan

Photo: Wataru Tsuda, Tatsuya Tanaka, Peter Zonneveld, Tsuyoshi Matsumoto, Norihito Saito, Ee Pin Lee, Katja Wodjereck, Kenji Tanaka and Sami Jauhiainen. Source: ITOCHU

(IN BRIEF) Neste and ITOCHU have expanded their collaboration through a licensing agreement, enabling ITOCHU to become an official distributor of Neste MY Renewable Diesel™ in Japan. This collaboration aims to increase the availability of renewable diesel in the country, supporting Japan’s decarbonization efforts. The partnership focuses on promoting the use of sustainable fuels and facilitating the transition from fossil fuels to renewable alternatives. Neste’s renewable diesel can reduce GHG emissions by up to 75-95% and does not require modifications to existing diesel vehicles. The collaboration also extends to the availability of Neste MY Sustainable Aviation Fuel™ in Japanese airports, aiding the reduction of emissions from aviation.

(PRESS RELEASE) ESPOO, 29-May-2023 — /EuropaWire/ — Neste (HEL: NESTE), the world’s leading producer of sustainable aviation fuel and renewable diesel, and renewable feedstock solutions for various polymers and chemicals industry uses, and ITOCHU have reached an agreement to further their collaboration through a licensing agreement, allowing ITOCHU to become an official distributor of Neste MY Renewable Diesel™ in Japan. This partnership aims to expand the availability of Neste’s renewable diesel, including the Osaka region, to cater to the fuel demand of the Osaka-Kansai Japan Expo construction site in 2025.

Japan has intensified efforts to decarbonize in line with its ambitious climate goals of achieving carbon neutrality by 2050 and reducing greenhouse gas (GHG) emissions by 46% by 2030. Neste and ITOCHU share a common vision of renewable fuels playing a vital role in reducing GHG emissions in Japan. The collaboration focuses not only on selling renewable diesel but also on promoting its use, accelerating the transition from fossil fuels to renewable fuels, and facilitating knowledge sharing on the benefits of renewable diesel.

“We are very excited to expand our Neste MY Renewable Diesel offering in Japan. We firmly believe that all solutions are needed to reduce transportation-related emissions and support Japan’s target of reaching carbon neutrality by 2050. We are committed to supporting our customers to reduce greenhouse gas emissions by at least 20 million tons annually by 2030,” says Peter Zonneveld, Vice President Sales, Europe and APAC at Neste’s Renewable Road Transportation business unit.

Neste and ITOCHU began their collaboration in June 2021 to make renewable diesel accessible to selected customers in Japan. The partners committed to establishing a strategic partnership to expedite the adoption of renewable diesel as a low-emission solution for diesel engines in the country.

“The relationship between Neste and ITOCHU first started as early as in 2010, when we collaborated on renewable diesel in California. We are now very pleased to deepen the relationship by expanding the distribution of renewable diesel in Japan. Renewable diesel is getting a lot of attention as a solution for decarbonizing multiple industries such as heavy duty transportation, off-road and railways in Japan. We are very happy to strengthen the partnership with Neste and thereby help the Japanese market to reduce its greenhouse gas emissions,” says Tatsuya Tanaka, ITOCHU’s General Manager of the petroleum trading department.

Switching from fossil diesel to Neste MY Renewable Diesel can lead to GHG emissions reductions of up to 75 to 95%* when considering the fuel’s life cycle. Produced entirely from renewable raw materials, Neste MY Renewable Diesel is a drop-in fuel that requires no modifications to existing diesel-powered vehicles or fuel distribution infrastructure.

Expanding the availability of renewable fuels in Japan

The extended partnership between Neste and ITOCHU also builds upon their existing collaboration to enhance the availability of Neste MY Sustainable Aviation Fuel™ (SAF) in the Japanese market. Utilizing Neste MY Sustainable Aviation Fuel can reduce GHG emissions by up to 80% over the fuel’s life cycle compared to fossil jet fuel**. Currently, Neste and ITOCHU are supplying SAF at Haneda, Narita, and Chubu International Airports, supporting Japanese airlines and the government in meeting their emission reduction targets.

*) The GHG emission reduction percentage varies depending on the region-specific legislation that provides the methodology for the calculations (e.g. EU RED II 2018/2001/EU for Europe and US California LCFS for the US), and the raw material mix used to manufacture the product for each market.

**) When used in neat form (i.e. unblended) and calculated with established life cycle assessment (LCA) methodologies, such as CORSIA methodology

Neste Corporation

Susanna Sieppi
Vice President, Communications

Further information: Please contact Neste’s media service, tel. +358 800 94025 / media@neste.com (weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/for-media/releases-and-news/subscribe.

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of sustainable aviation fuel and renewable diesel and developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce their greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. Our ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. We are introducing renewable and recycled raw materials such as liquefied waste plastic as refinery raw materials. We have committed to reaching carbon-neutral production by 2035, and we will reduce the carbon emission intensity of sold products by 50% by 2040. We also have set high standards for biodiversity, human rights and supply chain. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2022, Neste’s revenue stood at EUR 25.7 billion. Read more: neste.com

ITOCHU in brief

The history of ITOCHU Corporation dates back to 1858 when the company’s founder Chubei Itoh commenced linen trading operations. Since then, ITOCHU Corporation has evolved and grown over 160 years. With approximately 100 bases in 62 countries, ITOCHU Corporation, one of the leading sogo shosha, is engaging in domestic trading, import and export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, general products,realty, information and communications technology, and finance, as well as business investment in Japan and overseas.

SOURCE: Neste Corporation