Japan’s Eneos Oil in Carbon Credit Deal and Starts Sustainable Aviation Fuel Study

Japanese oil company Eneos has agreed to buy carbon credits from a forestry project in Niigata prefecture.

The agreement is with Niigata Prefectural Agriculture and Forestry Association for J-Credits. The project is expected to generate about 10,000 credits a year over a 16-year certification period.

Japan’s J-Credit scheme has been operated by the country’s Ministry of Economy, Trade and Industry since 2013.

Under the J-Credit Scheme, the government certifies the amount of greenhouse gas emissions (such as CO2) reduced or removed by sinks through efforts to introduce energy-saving devices and manage forests, as "credit.“

This scheme, which was created by expansively integrating the Domestic Credit Scheme and the Offset Credit (J-VER; Japan's verified emissions reduction) Scheme, is administered by the central government.

Credits created under the scheme can be used for various purposes, such as achieving the targets of the Nippon Keidanren's Commitment to a Low Carbon Society, and carbon offset.

Eneos will use the J-Credits to help it meet a goal of reducing scope 1 and 2 greenhouse gas emissions by 46% by 2030 compared with 2013 levels.

Eneos also announced the company will partner with global multi-energy firm TotalEnergies, to conduct a feasibility study for a sustainable aviation fuel (SAF) production unit at the Eneos Wakayama refinery in Arida, Japan.

The proposed unit, with an annual production capacity of 300,000 tons of SAF, will process waste or residue sourced notably from the circular economy, mainly used cooking oil and animal fat.

This collaboration will leverage the companies' respective areas of excellence and expertise

to develop mass production of SAF and a sustainable supply chain for SAF in Japan by 2026, which will lead to a significant reduction in CO2 emissions from air transportation.

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