Japan: Japanese companies focus on the establishment of an E-fuel supply chain

On May 27, 2024, Idemitsu Kosan, along with ENEOS, Toyota, and Mitsubishi Heavy Industries (MHI), announced their agreement to introduce carbon-neutral fuels in Japan by 2030. The agreement defined carbon-neutral fuels as the fuels that limit carbon dioxide (CO2) emissions across their entire product life cycle, including synthetic fuels, e-fuels, and biofuels.

As part of this agreement, the companies have conducted a study to facilitate the introduction and promotion of carbon-neutral fuels, contributing to Japan's carbon neutrality goals. They will play major roles in supply, technology, and demand as they jointly undertake this initiative. The agreement outlines two major objectives for this study: