(English Translation of the original Japanese version)

Report of the Initiatives for Next-generation Aviation Fuels

Roadmap for Establishing Supply Chain
for Next-Generation Aviation Fuels~ Aiming to Commence Utilizationby the 2020 Tokyo Olympics and Paralympics ~July 2015
Initiatives for Next-generation Aviation Fuels
INAF, JAPAN(English Translation of the original Japanese version)

Report of the Initiatives for Next-generation Aviation Fuels
Roadmap for Establishing Supply Chain for Next-Generation Aviation Fuels~Aiming to Commence Utilization by the 2020 Tokyo Olympics and Paralympics~
July 2015
Initiatives for Next-generation Aviation Fuels
Contents
Explanatory Notes ...................................................................................................................... 2
Disclaimer .................................................................................................................................. 2
Executive Summary.................................................................................................................... 3
1. Initiatives for Next Generation Aviation Fuels ..........................................................6
1. Background Behind Establishment of the INAF ................................................................ 6
2. Review Structure and Overview of Activities .................................................................... 8
II. Details of Each Review Structure’s Activities ...........................................................9
1. Plenary Sessions ................................................................................................................. 9
2. Steering Committee .......................................................................................................... 13
3. Subcommittee 1 ................................................................................................................ 14
4. Subcommittee 2 ................................................................................................................ 16
5. Subcommittee 3 ................................................................................................................ 18
6. Subcommittee 4 ................................................................................................................ 20
III. Review Results .....................................................................................................21
1. Basic Understanding......................................................................................................... 21(1) Significance of Review ............................................................................................... 21(2) Positioning of Review Results .................................................................................... 23(3) Consideration of the Implementing Enterprise ........................................................... 24(4) Consideration of the System Encompassing Aviation Fuel Supply ............................ 24
2. Roadmap........................................................................................................................... 28(1) Roadmap for Establishing a Supply Chain for Next-Generation Aviation Fuels ........ 28(2) Raw Material Procurement and Production ................................................................ 30①Municipal Waste ....................................................................................................... 30②Microalgae ................................................................................................................ 33③Natural Oils (Excluding Waste food oil) .................................................................. 35④Waste food oil ........................................................................................................... 37⑤Non-edible biomass (Cellulosic Sugar) .................................................................... 39⑥Woody Biomass ........................................................................................................ 41(3) Handling during Transport, Mixture as Well as at Airports and Aircraft ................... 43
3. Future Issues for Review .................................................................................................. 44(1) Consideration of the Business Promotion Framework................................................ 44(2) Consideration of Costs ................................................................................................ 45(3) Issues to be Addressed in Business Implementation ................................................... 46(4) Direction for Resolving Issues .................................................................................... 47
References .................................................................................................................................48
Principal Acronyms .................................................................................................................. 49
Data ........................................................................................ Appendix (Japanese version only)-1-Explanatory Notes○ Aviation fuelA general term referring to the fuel used for aircraft. This term is used to refer to a concept
comprising the terms of “conventional aviation fuels,” “next-generation aviation fuels”
and “alternative aviation fuels.”○ Conventional aviation fuelJet fuel which is derived from crude oil and currently used as fuel for aircraft. Kerosene,etc.
○ Next-generation aviation fuelUnlike conventional aviation fuel, fuel that is not derived from crude oil but derived frombiomass. A diverse range of raw materials is possible, including that produced frommunicipal waste, waste timber, non-food plants, sugar, alcohol or microalgae.
○ Alternative aviation fuelDrop-in aviation fuel certified under the ASTM D7566 standard as an alternative toconventional aviation fuel. Currently, this fuel as used for aircraft is a mixture ofconventional aviation fuel and next-generation aviation fuel.

Disclaimer
This report was compiled after careful deliberation by the Initiatives for Next Generation
Aviation Fuels, and does not necessarily reflect the views of individual members. The report
also contains statements related to the future. These statements are expectations based on avariety of information as of the time such discussions took place and involve uncertainties
that may entail to results different from those noted herein.

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Executive Summary
1. Significance of Formulating a Roadmap for Japan(1) From the standpoint of energy security and reduction of greenhouse gas emissions in theaviation sector as well, industry, government and academia need to collaborate to promote
the introduction of next-generation aviation fuels. So that a broad range of variety ofinterested parties cooperate, it is important that a broad overview be provided ofnext-generation aviation fuels.
(2) In other countries, activities have been furthered which promote the introduction of
next-generation aviation fuels and alternative aviation fuels. Such efforts include the sales
agreement for alternative aviation fuels concluded between British Airways and Solena
Fuels under the GreenSky London project, the sales agreement for alternative aviation
fuels concluded between United Airlines and AltAir Fuels, as well as the use andpreparation of alternative aviation fuels for commercial flights and team travel during the2014 FIFA World Cup in Brazil and the 2016 Rio de Janeiro Olympics and Paralympics.
(3) It is within this context that the Initiatives for Next Generation Aviation Fuels (INAF)
were established in May 2014 to formulate a roadmap with the aim of establishing a
supply chain for next-generation aviation fuels in Japan. The INAF is comprised of 46
organizations from industry, government and academia.
(4) The roadmap compiled after INAF deliberations offers a rough sketch of a path leading to
the introduction of next-generation aviation fuels, and brings together the entire supply
chain from the procurement of raw materials, production of next-generation aviation fuels,
their mixture with conventional aviation fuels to produce alternative aviation fuels, andrefueling of aircraft after the fuel has been transported to the airport.
(5) For business development, more substantive discussions are needed which are based on
this sketch. It is hoped that, in the future, a broad range of parties, not only those who aremembers of the INAF, will work together to accelerate the establishment of a supply chain
for next-generation aviation fuels, and show the world Japan's advanced commitment to
next-generation aviation fuels when the Tokyo Olympics and Paralympics open in 2020.
2. Summary of the Roadmap(1) In order to establish a supply chain for next-generation aviation fuels by 2020, fuelproduction was reviewed by adopting six raw materials: municipal waste, microalgae,
natural oils, waste food oil, non-edible biomass and woody biomass, for the formulation ofa roadmap.
(2) The development of a supply chain for next-generation aviation fuels from these raw
materials will enable the production of next-generation aviation fuels and supply ofalternative aviation fuels to begin by FY 2020, and thereafter, the quantity supplied will be
expandable.
(3) The principal path to be followed in the future is formulation of a business plan during FY2015 ~ 2016, the design and construction of a plant from FY 2016 ~ 2018, trial operation-3-

in FY 2019, and commencement of fuel supplies in FY 2020. Also, by FY 2018, handling
methods, which take into account international guidelines, will need to be developed forthe way in which these fuels are to be handled during transport and mixture as well as at
airports and aircraft, just as has been done for conventional aviation fuels. Moreover,mixing methods need to be considered, which take into account fuel quality management,
cost and other factors.
(4) Policy incentives promoting the introduction of next-generation aviation fuels are a
prerequisite to this roadmap. In addition, to realize this roadmap, it is necessary to reduce
costs so that next-generation aviation fuels are price competitive with conventional
aviation fuels, establish markets for by-products, as well as develop additional
technologies, and it would be desirable that a detailed review be immediately launchedwith the goal of business development.
(5) The specific details concerning mixing ratios for next-generation aviation fuels, business
expenses, estimated price of alternative aviation fuels, quantity demanded, quantity able tobe supplied and other such particulars will be reviewed during formulation of a detailed
business plan.
(6) The characteristics of each raw material are as follows:① Municipal waste: Municipal waste is a fuel production business undertaken in major
cities in Japan, and a path along which the early commencement of production andfuture expansion of supply can be anticipated based on the quantity of municipal waste
available, presence of collection systems, gasification, cleanup, FT synthesis, and thedegree to which applicable technologies for upgrade have advanced.
② Microalgae: Microalgae is a fuel production business undertaken in other countries, andbecause of the high oil productivity rate per unit area and the fact that competition withfoods can be mitigated, this is a path whose supply can be expected to be expanded overthe long term through the establishment of technology for stable and large quantity
cultivation of microalgae.
③ Natural oils: Natural oils are a fuel production business undertaken in Japan. Honeywell
Company UOP has established a track record with this technology. In addition to theprogress being made in commercialization in the United States, natural oil raw materials
are available in regions around Japan, and because natural oils are able to be physicallycollected, this path can be expected to commence early.
④ Waste food oil: Waste food oil is a fuel production business undertaken in Japan. Most ofsuch production is already put to other uses. However, the fact that there is a collection
system and highly developed production technology which takes into account advances
made in other countries, this is a path where the production of next-generation aviation
fuels can be expected to commence early.
⑤ Non-edible biomass: Non-edible biomass is a business in which fuel production can also
be anticipated in other countries. Growth-arrested bioprocess, which is at the core of thisbusiness, is an isobutanol production method having high raw material efficiency, so
this is a path where supply can be expected to be increased over the long-term.
-4-⑥ Woody biomass: Woody biomass is a fuel production business undertaken in regions
throughout Japan. Because this raw material is an untapped resource available in large
volume in Japan, this path can be expected to increase supply over the long term
through construction of an economically efficient raw material collection system.
3. Future Considerations(1) When operating the business, a business promotion framework, which is able to beconstruct the ideal system for ensuring each enterprise’s profit, will be determined by thoseenterprises participating in the project in line with a concrete business model, while
keeping in mind that the framework is an important factor affecting financing.
(2) It is unavoidable that the price of alternative aviation fuel, which is calculated based on thenecessary costs for such a business, will significantly exceed the price of conventional
aviation fuels over recent years. In order to establish a supply chain for alternative aviation
fuels, it is important that such consideration proceed from the standpoint that businesses
such as fuel producers and air carriers which comprise the supply chain, users of airline
services which are growing and expanding, and the broad-based public which enjoys thebenefits of greenhouse gas countermeasures and energy security bear costs in keeping withthe degree to which such benefits are enjoyed.
(3) The means which have been considered for making up the aforementioned pricedifferential include lowering costs through improvements at each stage of the supply chain,system optimization, technological innovation, user fees, area charges, and public support,
and further debate on such means is awaited. Furthermore, it is necessary thattechnological and development systems be refined through operation of a demonstration
project, that by-products be used and applied, advances made in the schedule for upgrading
to accommodate a diverse range of raw materials, and, moreover, advances be madethrough the promotion of sales and purchases.
(4) In 2020 when the Tokyo Olympics and Paralympics are scheduled to open, the MRJ,
which is currently being developed and will be Japan's first domestically manufactured
passenger aircraft in 50 years, is also scheduled to be flying through the skies of Japan andthe world, so the manufacture of next-generation aviation fuels in Japan as well as thecommencement and promotion of an alternative aviation fuel supply is a good opportunity
for Japan, which advocates a national commitment to tourism, the environment andtechnology, to establish a new presence, and it is desirable that the promotion of thisbusiness be accelerated now.

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I. Initiatives for Next Generation Aviation Fuels
1. Background Behind Establishment of the INAF
The demand for commercial air services is projected to increase steadily in the future, andincreases in the number of passengers as well as the volume of cargo have continued at anannual rate of 5% such that, in 20 years, demand will be approximately 2.6 times higher thanits current level 1 . Therefore, for air transport to grow, it is essential that sustainable
development be based on the promotion of measures to counter global warming and ensure
energy security for a stable supply of fuel.
As for aviation sector, measures to address global warming, carbon neutral growth has become
an international pledge, backed by such moves as the resolution (CNG2020 2) passed at theGeneral Assembly of the International Civil Aviation Organization (ICAO 3), stating thatcarbon dioxide emissions 4 from the international aviation sector would not be allowed toincrease beginning in 2020 5 . In every country, along with the introduction of highly
fuel-efficient equipment and the realization of efficient transport through advances in air
traffic control technology, activities have intensified in the move toward introduction of
next-generation aviation fuels. From the standpoint of energy security as well, the UnitedStates is promoting the development and introduction of next-generation aviation fuels fromthe standpoint of reducing dependence on foreign oil, and momentum is gaining in industry as
such activities are advanced in each country.
As for the situation in other countries at the beginning of 2014 in regard to the introduction of
next-generation aviation fuels, in 2012, as part of the GreenSky London project, British
Airways and Solena Fuels reached an agreement for the sale of alternative aviation fuels, andthe site for construction of a refining plant on the outskirts of London was announced in 2014.
In addition, United Airlines concluded a sales agreement for alternative aviation fuels in 2013
with AltAir Fuels. Under this project, next-generation aviation fuel and conventional aviationfuel will be mixed at a plant, which will be an improved existing facility, and the supply ofalternative aviation fuel is scheduled to commence at Los Angeles Airport in 2014 6 .
Furthermore, in Brazil, preparations are underway to use 7 next-generation aviation fuels forcommercial flights and transporting teams during the 2014 FIFA World Cup as well as the2016 Rio de Janeiro Olympics and Paralympics.
1

Based on estimates prepared by the Boeing Company (see reference 3).
CNG is an acronym of Carbon Neutral Growth.
3
ICAO is an acronym of International Civil Aviation Organization, a specialized institution under the auspices of theUnited Nations, concerned with international civil aviation and headquartered in Montréal.
4
Carbon dioxide emissions from the international aviation field are approximately 1.5% of total global emissions (basedon IEA data in reference 4).
5
Paragraph 6 of the 2010 ICAO General Assembly resolution (see reference 1)
6
As of March 2015 commencement of supply has not been confirmed, but an application for subsidies presented by
AltAir Fuels regarding investment for increasing production capacity was accepted in 2014 and it seems the project isprogressing. (See September 10, 2014 news release by the California Energy Commission)
http://www.energy.ca.gov/releases/2014_releases/2014-09-10_naturalgas_biofuels_grants.html
7
During the 2014 World Cup, Brazil's GOL Airlines used alternative aviation fuel, which was a 50% mixture ofnext-generation aviation fuel using non-edible corn oil and had cooking oil as the raw material (IATA data (reference 2) p.
11). Preparations are also underway for the Olympics and Paralympics.
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The 2020 Tokyo Olympics and Paralympics offers the perfect opportunity for Japan to show
the world its progressive commitment, and such a response is also sought in the aviation sector.
The establishment of a supply system for next-generation aviation fuels, an issue that isalready urgent, needs to be accelerated so as to realize supply of alternative aviation fuels at
airports in Japan in FY 2020. There is no single raw material or production method fornext-generation aviation fuels. Because the burden placed on the global environment asviewed through production costs and lifecycles differs depending on the quantity of raw
material which can be procured, location where such fuel is produced and supplied as well asother conditions, these factors need to be integrated and optimized from many different
perspectives. To that end, it is essential that a roadmap be based on consideration from acomprehensive point of view looking across the entire supply chain including raw material
procurement, production technology and distribution routes, as well as the legal framework.
Taking into account the period of time required to establish such a supply system and based on
an awareness that domestic companies possessing such technology and business know-how
need to collaborate to immediately address this issue, the University of Tokyo, Boeing
Company, Japan Airlines Co., Ltd., Nippon Cargo Airlines Co., Ltd., All Nippon Airways Co.,
Ltd., Narita International Airport Corporation and the Japan Petroleum Exploration Co., Ltd.
designed a plan to launch a collaborative structure of organizations involved with
next-generation aviation fuels, prepared the founding purpose shown in Chart 1, and called oninterested parties to join together.
After this course of action was taken, the Initiatives for Next Generation Aviation Fuels wasestablished in May 2014.
Chart 1: Founding Purpose of the Initiatives for Next Generation Aviation Fuels
In aviation, carbon neutral growth has become an international pledge, which has been backed by theGeneral Meeting of the International Civil Aviation Organization (ICAO) resolving not to allow carbon
dioxide emissions to increase beginning in 2020 (CNG2020) in the international aviation sector. In theaviation sector which is expected to grow globally in the future, the reduction of carbon dioxide
emissions is an urgent issue to be addressed in fulfilling this pledge. All countries are actively working
to make next-generation aviation fuels more widespread as they serve as an important measure forachieving the goal of reducing carbon dioxide emissions worldwide.
In such context, a roadmap is essential which is based on consideration from a comprehensive point ofview looking across the entire supply chain including raw material procurement, production technology
and distribution routes, as well as the legal framework for establishment of a supply structure fornext-generation fuels in Japan.
Based on the aforementioned awareness of the issue, the Initiatives for Next Generation Aviation Fuels
shall be established to promote the establishment of a supply structure and make if become more
universal in regard to next-generation aviation fuels.
April 2014
The University of Tokyo, Boeing Company, Japan Airlines Co., Ltd., Nippon Cargo Airlines Co., Ltd.,All Nippon Airways Co., Ltd., Narita International Airport Corporation and the Japan Petroleum
Exploration Co., Ltd.

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2. Review Structure and Overview of Activities
For the Initiatives for Next Generation Aviation Fuels (INAF 8), the seven organizations thatdrafted the aforementioned founding purpose serve as the steering committee members, andthe companies and other organizations associated with the supply chain for aviation fuels,
including the steering committee members, are the INAF’s members (Chart 2). Also, theINAF has set up four subcommittees, which will organize and deliberate issues and solutions
pertaining to ① supply chains using municipal waste for the raw material (First
Subcommittee), ② supply chains using oils produced by microalgae for the raw material(Second Subcommittee), ③ supply chains using other materials for the raw material (Third
Working), and ④ legal system (Fourth Subcommittee).
As the subcommittees developed an understanding of salient issues and the plenary sessions
shared such information and compiled questions to be addressed, the INAF prepared aroadmap for establishing a supply chain for next-generation aviation fuels in Japan over theperiod of approximately one year.
Chart 2: Members of the Initiatives for Next-generation Aviation Fuels

While information and awareness of the issues was shared among members and scenarios
anticipated for establishing supply chains for each raw material in the aim of introducing
next-generation aviation fuels, issues particular to each type of raw material as well as
common issues, including development of a legal framework, were identified and solutions
compiled, and a framework leading to concrete operations were studied and reviewed in thesubcommittees and plenary sessions. Furthermore, the website has been utilized tocommunicate such information externally9.

8INAF is an acronym of the Initiatives for Next Generation Aviation Fuels
Public announcement given regarding establishment of the Initiatives on July 9, 2014. The website URL is
http://inaf-japan.tumblr.com/.

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II. Details of Each Review Structure’s Activities
1. Plenary Sessions(1) General Overview of Activities
At the plenary sessions, an awareness of the issues related to next-generation aviation fuels
were shared among the members, and reports prepared and given on the progress made by thesubcommittees and information shared about global trends by inviting experts from othercountries.
(2) Membership Roster: See Chart 2 (P11)(3) Meetings Held and Summary of Proceedings①First Plenary Session: Friday, May 30, 2014, 13:30~16:00(Venue: Sanjo Conference Hall, The University of Tokyo)

The first plenary session was the first meeting of the INAF, so the steering committee
provided information about the background behind establishment of the INAF and its purpose.
The session discussed the direction future activities would take. More specifically, after the
University of Tokyo provided on overview of the INAF as well as information pertaining to
the global context in relation to the INAF’s activities, Nippon Cargo Airlines Co., Ltd., Japan
Airlines Co., Ltd., and All Nippon Airways Co., Ltd. furnished information about theirrespective efforts to reduce environmental load in the aviation sector, trends pertaining to thedevelopment and use of next-generation aviation fuels around the world, and issues to beaddressed in having next-generation aviation fuels more widely used. The Boeing Company
presented information about the company’s global activities regarding next-generation
aviation fuels. During the question-and-answer portion, a question was posed to confirm
whether the municipal waste to be used as a raw material was the raw waste treated at waste
disposal sites or whether it was the ashes after incineration at a waste treatment site. The reply
was that the former is the raw material to be reviewed and, at the current point in time,
consideration is being given to general municipal waste collected in the Tokyo metropolitan
area. Also, a question was posed about the provisional calculations produced by air carriers,
and confirmation indicated that air carriers would like to begin using next-generation fuels tothe extent possible no later than 2020 when the Tokyo Olympics and Paralympics are held.
②Second Plenary Session: Tuesday, June 10, 2014, 10:00~12:00 (venue: Boeing Japan)
Item: The Status of Bio-derived Fuels for Aviation (The Boeing Company)

At the second plenary session, a technical fellow of the Boeing Company and also chairman of
an ASTM standards 10 technical subcommittee concerned with next-generation aviation fuels
10Standards established and issued by ASTM International, the world's largest international standard organization,
regarding performance and test methods for materials associated with a wide range of industrial products including aviation
fuel. The organization has approximately 160 technical committees, and sets standards for a variety of materials and otheritems under each committee's purview, and there are over 12,000 standards. (Source: ASTM International’s website)-9-

came to Japan and provided information about technical matters related to next-generation
aviation fuels as well as the status of establishment of international standards, and thisinformation was shared with the entire INAF membership. The main items were as follows.
 Air transport differs from land transport, and for the extended future, aircraft have no choice
but to depend on liquid fuels with high energy density.
 For that reason, the diversification of fuels is an issue of vital importance to air carriers, andfrom the standpoint of reducing that burden, the Boeing Company is working to develop andmake next-generation aviation fuels more widespread.
 For fuels proposed as next-generation aviation fuels to be certified for use as drop-in fuels11
on aircraft which have been designed on the basis of the properties of conventional aviation
fuels refined from fossil fuels, it is essential that an original equipment manufacturer (OEM),such as the Boeing Company, which has full knowledge of aircraft systems participate.
 The ASTM standards, which are the international standard for aviation fuels, are stipulated in
D7566 Annex for next-generation aviation fuels, and in D7566 for alternative aviation fuels,
including the ratios 12 for mixture with next-generation aviation fuels.
 At the time the meeting was held (June 10, 2014), the standards for next-generation aviation
fuels were FT SPK13 (D7566 Annex A1) and HEFA SPK14 (D7566 Annex A2), and SIP 15
was also soon to be enacted (on June 15, 2014, a standard was set in D7566 Annex A3).
 The Boeing Company has hopes for a fuel known as Green Diesel, which is produced frombiomass derived oils, to be a next-generation aviation fuel in the future, and is working tohave standards enacted in the ASTM D7566 Annex. Currently, Green Diesel andnext-generation aviation fuel (HEFA SPK) are fractionated, but both are chemically similar
with the exception of freezing points 16, so consideration is being given to incorporating afreezing point that Green Diesel will be able to satisfy into the D7566 standard. If analternative aviation fuel, which is a mixture of Green Diesel and conventional aviation fuel,can be used for aircraft, the ratio of aircraft fuel that is able to be produced from raw material
will increase, so it is expected that there will be a tremendous increase in the quantity ofnext-generation aviation fuels produced. (The name Green Diesel is often misunderstood to be
the same as biodiesel, and beginning in 2015, it has been called High Freeze Point HEFA.)③ Third Plenary Session: Monday, September 1, 2014, 13:30~16:30(Venue: Narita International Airport)

11

Drop-in fuel has the same properties as conventional aviation fuel, and no changes are required to the existing
infrastructure such as aircraft, airports, fuel supply facilities and so on for use in aircraft.
12
Percentage that next-generation aviation fuels account for of alternative aviation fuels
13
FT SPK: Fischer-Tropsch Hydroprocessed Synthesized Paraffinic Kerosine.
FT synthesis is hydrocarbon synthesis developed by German researchers F. Fischer and H. Tropsch. It is a method thatuses a gas mixture of carbon monoxide and hydrogen at a specific ratio for the raw material to produce naphtha andkerosene-gas oil by using iron, ruthenium, cobalt or another metal catalyst. Products show a wide-ranging distribution frommethane to wax in accordance with the Schulz-Flory distribution (see data from the JX Nippon Oil & Energy Corporation(reference 18).
14
HEFA SPK: Synthesized Paraffinic Kerosine from Hydroprocessed Esters and Fatty Acids, also known as Bio SPK(Bio Derived Synthesized Paraffinic Kerosine).
15
SIP: Synthesized Iso-Paraffines from Hydroprocessed Fermented Sugars, also known as DSHC (Direct Sugar to
Hydrocarbon).
16
Temperature at which a substance begins to freeze, also known as the congealing point or freezing point.

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After the second plenary session, the INAF’s activities moved into full swing in July. On July
9th, the INAF’s establishment was publicly announced, and the subcommittees began theirinvestigations. At the third plenary session in September, these circumstances was taken into
account and the status of reviews conducted by each subcommittee over previous two months
since July was confirmed at a full session of the INAF’s members, and information wasprovided about the aircraft fueling facilities at Narita International Airport and a tour was also
taken of the facilities.
With regard to the First Subcommittee which was reviewing a supply chain using municipal
waste as the raw material, Japan Airlines Co., Ltd., National Institute of Advanced Industrial
Science and Technology, and Toyo Engineering Corporation provided on overview oftechnical options for gas production from municipal waste. The deliberations were premisedon a fuel price of 100 JPY per liter, and not all raw materials would be converted tonext-generation aviation fuel, but when used in combinations with electricity and otherproducts, economic competitiveness in the production would be pursued. IHI Corporation
provided an explanation about the Second Subcommittee, which was investigating a supply
chain in which oils produced by microalgae would be used as the raw material, and an
explanation was given to the effect that attention will be focused on the issue of quantitative
matching of fuel supply and demand with the aim of formulating a roadmap. Nippon Cargo
Airlines Co., Ltd. provided an explanation about the Third Subcommittee which wasinvestigating a supply chain where materials other than municipal waste and microalgae would
be used as the raw material, and a presentation was given of the raw materials narrowed down
for review, stating that the manufacture, refinement and supply of these will be examinedaccording to their location as the investigation proceeds further. The Boeing Company
provided an explanation regarding the Fourth Subcommittee which was studying the legal
system and talked about the status of review concerning waste treatment and inspections forfuel quality as well as wishes presented by each subcommittee for revisions in the legal
system.
With regard to Item 2, the Narita International Airport Corporation provided an explanation of
the routes and structure used for aircraft fuel as well as an overview of the facilities, statingthat because Narita International Airport is an inland airport, aviation fuel is unloaded at Chiba
Port in Tokyo Bay and transported to the airport by pipeline. At the airport, aircraft are fueledfrom hydrants, and information was shared about issues pertaining to cases where
next-generation aviation fuels are introduced.
④Fourth Plenary Session: Thursday, November 6, 2014, 10:00~12:30(Venue: Faculty of Engineering, The University of Tokyo)- 11 -

The fourth plenary session in November welcomed US government officials and anext-generation aviation fuel enterprise, which were invited by the Boeing Company to speakat a seminar sponsored by the University of Tokyo and Boeing Company17, and the parties
concerned from the United States shared information with the entire INAF membership about
the business development of production and supply of next-generation aviation fuels as well as
examples of efforts to introduce next-generation aviation fuels in the United States.
Mr. Hileman of the Federal Aviation Administration (FAA) gave an overview of the FAA's
efforts aimed at having next-generation aviation fuels more widely used as well as policies
promoting the introduction of next-generation aviation fuels with attention directed to thequantification of environmental, economical and social issues. Mr. Holladay from the
Department of Energy (DOE) gave an overview of the DOE's efforts in the context of overall
US government's efforts related to next-generation aviation fuels as well as the importance ofcollaboration among government departments and agencies. Mr. Fleming from LanzaTech18
gave a summary of the demonstration testing and development projects, which the company isundertaking, as well as the company's processes for consideration of the environment and such
advantages.
During the exchange of opinions after the three gave their presentations, discussions focusedon points such as, although the use of next-generation aviation fuels has advantages forenvironmental improvement in the sense of reducing greenhouse gases, such fuels need to becompetitive at the current point in time in terms of pricing with conventional aviation fuels;that if a structure is able to be constructed so that raw material may be procured at a low price,
such a structure would give next-generation aviation fuels price competitiveness, and this issue
is considered to be a challenge but not impossible; and that one method of lowering the overall
manufacturing cost cited was the production of comparatively high priced biochemical
products as a by-product, but it would be necessary to have demand for and quantity of the
by-product produced to match the anticipated scale of production of next-generation aviation
fuels. Furthermore, it was confirmed that sustainability, which should be discussed in the
background of next-generation aviation fuels, is a broad concept that not only includes
greenhouse gases, but also hydrological cycle systems, atmospheric environment as well as
biodiversity.
⑤Fifth Plenary Session: Wednesday, January 28, 2015, 13:30~16:30(venue: Sanjo Conference Hall, The University of Tokyo)

17“Aviation and Environment Workshop” held on November 5, 2014. Data is available at the following URL:
http://aviation.u-tokyo.ac.jp/event.html (viewed May 4, 2015)18
LanzaTech developed a unique processing method that uses microorganism based fermentation to convert gases,
including carbon monoxide and carbon dioxide, into fuel and chemical products such as ethanol and butadiene, and has
worked to create a business of licensing the technology (see March 26, 2014 news release by Mitsui & Co., Ltd.).

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At the fifth plenary session, the Secretariat provided suggestions on the main points for the
INAF’s report in preparation for the summary due in several months while taking into accountpreviously held discussions, and the INAF confirmed that the work should proceed in the
direction proposed. Also, reports were given about the progress of each subcommittee's
investigations and these reports were shared with the entire INAF membership.
During the plenary session discussions regarding consideration given to the summary,questions were raised about the necessity of nationwide efforts in regard to promoting the
introduction of next-generation aviation fuels, the points regarding which detailed review
should proceed in dividing up roles between the government and private sector, as well as thenecessity for a debate about how Japan should undertake future allocation, including with theautomobile sector, of hydrogen, a large quantity of which is needed in the process considered
for refining next-generation aviation fuels.
⑥ Sixth Plenary Session: Friday, April 3, 2015, 13:00~15:00(Venue: Sanjo Conference Hall, The University of Tokyo)
Item: Report of the Initiatives for Next Generation Aviation Fuels

At the sixth plenary session in April which was also the last general meeting, the basic points
to be included in the draft report, which had been coordinated within the INAF since
mid-March, were confirmed. In the subsequent exchange of opinions, there was debate about
numerical transactions such as investment scale. In regard to this, it was pointed out that such
figures are necessary for illustrating to a wide variety of audiences the fuel production
business, that there is a risk information pertaining only to numerical figures might take on alife of its own, that numerical figures are forecast based on hypotheses and there is a methodof noting to the effect that future results may differ from forecasts. It was decided that thisissue would be settled in the final reconciliation process of the report.
Also, this would be the final plenary session held, and reconciliation of the report would bedone by email and it was confirmed that the plan was to have the report released publicly at a
general public symposium in July after the translation into English.
2. Steering Committee(1) General Overview of Activities
The Steering Committee certified newly participating members in the INAF, planned theplenary sessions and reviewed the summary.
(2) Membership Roster:A total of seven organizations form the membership of the steering committee: The Universityof Tokyo, Boeing Company, Japan Airlines Co., Ltd., Nippon Cargo Airlines Co., Ltd., All
Nippon Airways Co., Ltd., Narita International Airport Corporation and the Japan Petroleum
Exploration Co., Ltd.

- 13 -

(3) Meetings Held
In addition to holding a total of eight meetings as described below, information was shared anddiscussions conducted by email.
 1st: Wednesday, May 14, 2014
15:30~17:30(Venue: Boeing Japan)nd 2 : Tuesday, June 10, 2014
12:00~13:00(Venue: Boeing Japan)rd
13:00~15:00(Venue: Boeing Japan)
 3 : Monday, June 30, 2014th
10:00~11:00(Venue: Narita Int’l Airport)
 4 : Monday, September 1, 2014th
 5 : Wednesday, November 12, 2014
13:00~15:00(Venue: Boeing Japan)th 6 : Wednesday, November 18, 2014
15:00~17:00(Venue: Boeing Japan)th
15:00~17:00(Venue: Boeing Japan)
 7 : Wednesday, January 21, 2015th
 8 : Monday, March 16, 2015
10:00~12:00(Venue: Boeing Japan)th
15:00~17:00(Venue: Boeing Japan)
 9 : Friday, April 24, 2015(4) Summary of Proceedings of Each Session
At each session of the steering committee, discussions were held on the INAF’s operations,which included deliberating plans for plenary sessions, verifying the meeting material,establishing and checking on the progress of subcommittees, preparing press releases,
coordinating each subcommittee's investigations, managing the overall schedule, and planning
the symposium.
3. Subcommittee 1(1) General Overview of Activities
A roadmap was considered from the standpoint of early realization of a supply chain for whichmunicipal waste serves as the raw material, while taking into account possibilities for future
growth of such business. In order to clarify issues pertaining to the three methods for
producing next-generation aviation fuels, which are 1) the conversion of synthesis gas, which
is produced by gasification of municipal waste, to liquid fuel by means of FT synthesis andthen upgrading the liquid fuel, 2) the use of bacterial cells for ethanol fermentation ofsynthesis gas, which is produced by gasification of municipal waste and made into aviationfuel by increasing the carbon chain count (ATJ 19), and 3) the use of yeast for ethanol
fermentation of dehydrated pulp obtained from separating, pulverizing and pulping municipal
waste and then ATJ processing after distillation, the subcommittee investigated thedevelopment of business employing these methods on the premise that domestically produced
fuel would be supplied at a price of 100 JPY per liter, which is the same as the price of
conventional aviation fuels in recent years. The initial review was conducted to verify theconsistency of small scale systems based on purely domestic production, as well as formulatea roadmap.
(2) Membership Roster:A total of 21 organizations are members of the First Subcommittee: ITOCHU ENEX Co., Ltd,
19

Acronym of Alcohol to Jet. ATJ is a method of producing next-generation aviation fuel using alcohol as the raw
material, and there are two types of production from isobutanol and from ethanol, and consideration is being given to
establishing provisions for both under ASTM D7566 Annex.

- 14 -

ITOCHU Corporation, Japan Aerospace Exploration Agency, ORIX Environmental Resources
Management Corporation, National Institute of Advanced Industrial Science and Technology(Chair), JFE Engineering Corporation, Shell Japan Ltd., Japan Petroleum Exploration Co., Ltd.
(preparation of business development scenarios), The University of Tokyo, Toyo Engineering
Corporation (technical summaries), Japan Asia Investment Co., Ltd., Japan Airlines Co., Ltd.
(Secretariat), Nomura Research & Advisory Co., Ltd., Hitachi Zosen Corporation, Mitsui
Engineering & Shipbuilding Co., Ltd., Mitsui Global Strategic Studies Institute, Ministry of
Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism,
Ministry of the Environment, New Energy and Industrial Technology Development
Organization and IATA 20 Japan (International Air Transport Association).
(3) Meetings Held and Summary of Proceedings
In addition to holding a total of eight meetings as described below, information was shared anddiscussions conducted by email.
① First meeting: Friday, July 4, 2014, 14:00~17:00 (Venue: Boeing Japan)
National Institute of Advanced Industrial Science and Technology, Hitachi Zosen Corporation
and JFE Engineering Corporation gave presentations to share information about the current
state of technology for gasification of municipal waste, and the subcommittee’s objectives
were shared, which was to investigate a supply chain for production using municipal waste asa raw material on the assumption of domestically produced next-generation aviation fuel being
priced at 100 JPY per liter.
② Second meeting: Friday, July 25, 2014, 14:00~17:00 (Venue: Boeing Japan)
Mitsui Global Strategic Studies Institute, Toyo Engineering Corporation and ITOCHU
Corporation each gave presentations to share information about LanzaTech’s bacterial cells,
FT synthesis and the GreenSky London Project. Items to be reviewed concerning production
technology and processes, demonstration plants and commercial plans, and economic
competitiveness were discussed and consolidated.
③ Third meeting: Friday, August 22, 2014, 11:30~16:00 (Venue: Biomass Refinery
Research Center, National Institute of Advanced Industrial Science and Technology)
At the Biomass Refinery Research Center of the National Institute of Advanced Industrial
Science and Technology, a tour was conducted of a bench-scale plant 21 for producing aviationfuel in an integrated manner from raw material with a BTL (biomass to liquid) process
employing the FT synthesis, and discussions were held on commercialization ideas, energy
calculations, and the consolidation of review items.
④ Fourth meeting: Friday, September 5, 2014, 14:00~17:00 (Venue: Boeing Japan)
Discussions were held with the aim of developing this business on the condition that thegasification and reforming furnace by the Japan Recycling Corporation, which is a wholly
owned subsidiary of JFE Engineering Corporation, is utilized, and consideration was divided
into demonstration plants and commercial plants, and the current circumstances surrounding
20

An international industrial group comprised of air carriers, etc., which is headquartered in Geneva and Montréal.
A bench scale plant is larger than a lab scale plant fabricated in a research laboratory, and smaller than a demonstrationor commercial plant.

21- 15 -

facilities for aviation fuel production were consolidated.
⑤ Fifth meeting: Friday, October 3, 2014, 14:30~17:00 (Venue: Boeing Japan)
Discussions were held concerning provisional calculations pertaining to the profitability of
production of next-generation aviation fuels by means of gasification of municipal waste andthe FT synthesis.
⑥ Sixth meeting: Friday, October 17, 2014, 14:30~17:00 (Venue: Boeing Japan)
Discussions were held on Hitachi Zosen Corporation’s technology for producing
next-generation aviation fuel with the use of yeast for ethanol fermentation of dehydrated pulp
obtained from separating, pulverizing and pulping municipal waste and then undergoing ATJ
processing after distillation, as well as on business schemes and the supply chain all the way
through to aircraft fueling.
⑦ Seventh meeting: Thursday, November 27, 2014, 13:30~17:00 (Venue: East Japan
Works, JFE Steel Corporation (Chiba region))
Based on an explanation by Japan Petroleum Exploration Co., Ltd. concerning case studies ofinvestment evaluations for next-generation aviation fuel production businesses using
municipal waste as the raw material, information was shared about assessing investments forbusiness development, referencing a technique known as framing which is conducted in thefirst step of the investment of violation process.
⑥ Eighth meeting: Friday, January 16, 2015, 15:00~17:00 (Venue: Boeing Japan)
Based on an explanation by IATA on worldwide trends pertaining to next-generation aviationfuel supply chains and quality inspection systems, discussions were held on fuel standards andquality inspections, and the future schedule for putting together a summary was confirmed.
4. Subcommittee 2(1) General Overview of Activities
In regard to a supply chain for next-generation aviation fuel which uses the raw material oil
content known as algae oil produced from microalgae, because such a process is undertakenfrom production of raw material which differs from other paths, and it is assumed that the raw
material will be produced overseas in view of the climate and required area suitable for suchgrowth, and that production may be repeated because microalgae which exist in nature areused, and that there are differences in oil content depending on the type of microalgae used, aroadmap was drafted while seeking collaboration and cooperation for such business and taking
into account that there are different elements in development related to production process andproduction technology.
The current situation is one in which previous reviews have been accomplished through thedemonstrative stage and efforts are being made to create a larger scale. Accordingly, theexamination considered the manner in which support is to be provided for business
implementation as well as issues after upgrading, and the possibilities for collaboration andcooperation not just among producers but also refiners and others. Production will take place
overseas for large-scale demonstrations and full-scale business development, so the issues tobe addressed are: in what state may fuel be brought into Japan and under what terms.
- 16 -

(2) Membership roster:A total of 28 organizations are members of the Second Subcommittee: IHI Corporation (Chair),
ITOCHU Corporation, ORIX Environmental Resources Management Corporation,
K-laboratory Co., Ltd., National Institute of Advanced Industrial Science and Technology,
Sumitomo Corporation, Japan Petroleum Exploration Co., Ltd., All Nippon Airways Co., Ltd.
(Secretariat), Chitose Laboratory, Chiyoda Corporation, The University of Tokyo, Toyota
Central R&D Labs, JGC Corporation (Deputy Chair), Japan Asia Investment., Ltd., Nomura
Research & Advisory Co., Ltd., PHOENIX BUSINESS CO., LTD., Microwave Chemical Co.,
Ltd., Mitsui Global Strategic Studies Institute, Mitsubishi Research Institute, Inc., euglena Co.,
Ltd., Ministry of Agriculture, Forestry and Fisheries, Ministry of Economy, Trade and Industry,
Ministry of Land, Infrastructure, Transport and Tourism, Ministry of the Environment,
Ministry of Defense, New Energy and Industrial Technology Development Organization,
National Agriculture and Food Research Organization, and International Air Transportation
Association (IATA).
(3) Meetings Held and Summary of Proceedings
In addition to holding a total of five meetings as described below, the review proceeded inworking groups (WG) from the fourth meeting on (see ④ Fourth meeting), and after
information was shared by email among the subcommittee's members, the roadmap preparedby the working group was examined at the fifth meeting. Also, the working group conducted
an exchange of opinions with experts on alternative aviation fuels at the IATA head office.
① First meeting: Wednesday, July 9, 2014, 14:45~17:00 (Venue: Boeing Japan)
After the objectives of the Second Subcommittee were shared, discussions were held on theissues, and requests presented concerning systematic reforms and the future schedule. The
Subcommittee commenced discussions on the premise the provision of one percent of theaviation fuel consumed by Japan's air carriers by FY 2020. Furthermore, for the cultivation of
microalgae, a vast land area with good growing conditions is needed, and it is anticipated thatsuch cultivation will take place overseas. It was indicated that public support would benecessary if discussions are premised on the aim of supplies at a price of 100 JPY per literwhich is the same as the price of conventional aviation fuels in recent years.
② Second meeting: Monday, August 4, 2014, 15:30~18:00 (Venue: Boeing Japan)
New Energy and Industrial Technology Development Organization (NEDO) gave apresentation on the current state of the development of production technology to derive fuelfrom microalgae in Japan, and BioFuel Systems, a Swiss company invited by PHOENIX
BUSINESS CO., LTD., gave a presentation on technology and activities for producing oilfrom microalgae in the ocean, and this information was shared.
③ Third meeting: Wednesday, August 27, 2014, 15:30~17:30(Venue: All Nippon Airways Co., Ltd)
Discussions were held on issues related to technology development, the quantity ofnext-generation aviation fuels demanded, and the utilization of public funds.
④ Fourth meeting: Friday, September 19, 2014, 9:00~11:30 (Venue: Boeing Japan)
Euglena Co., Ltd. gave a presentation and shared information about the company's research- 17 -

and business plans. Also, in order to prepare a draft of the roadmap, a working group wasestablished which was comprised of IHI Corporation, Japan Petroleum Exploration Co., Ltd.,
Chitose Laboratory, JGC Corporation, euglena Co., Ltd. and the Secretariat.
⑤ Fifth meeting: Monday, January 19, 2015, 15:30~17:30 (Venue: Boeing Japan)
Taking into account the formulation of a roadmap for supplying next-generation aviation fuelwhich uses algae oil produced from microalgae as the raw material, discussions were held
based on the working group’s proposal. While continuing to give consideration to achieving
the milestones and targets for the quantity of fuel produced in FY 2020 and FY 2030, review
was conducted of the significance of a roadmap starting with microalgae, measures forrealization of production of next-generation fuels that are price competitive, and the necessityof public support.
5. Subcommittee 3(1) General Overview of Activities
Examination was conducted of the possibilities for realizing next-generation fuels which use
for the raw material elements other than municipal waste and algae oil produced frommicroalgae, while also bearing in mind overseas production for large-scale demonstration
projects and full-scale business development. Also, with regard to product importation, bio
crude oil importation and technology upgrades, reviews were conducted about addressing thediversification of raw materials, ensuring sources of hydrogen, and technical issues. After
discussions which included possibilities for collaboration and cooperation, principallyinvestigating the processes and technologies for refining raw material to produce fuel which
was of interest to the members of the subcommittee, a roadmap was ultimately formulated inwhich the raw materials covered would be natural oils (with the exception of waste food oils),
waste food oil, non-edible biomass (cellulosic sugar; hereinafter the same) and woody
biomass.
(2) Membership roster:A total of 24 organizations are members of the Third Subcommittee: ITOCHU ENEX
Corporation, ITOCHU Corporation, Japan Aerospace Exploration Agency, Kawasaki Heavy
Industries, Ltd., Green Earth Institute Co., Ltd., K-laboratory Co., Ltd., National Institute ofAdvanced Industrial Science and Technology, Japan Petroleum Exploration Co., Ltd., Chiyoda
Corporation, The University of Tokyo, Toyota Central R&D Labs, JGC Corporation,
Nikki-Universal Co., Ltd., Japan Asia Investment Co., Ltd., Nippon Cargo Airlines Co., Ltd.
(Secretariat), Nomura Research & Advisory Co., Ltd., Mitsui Engineering & Shipbuilding Co.,
Ltd., Mitsubishi Heavy Industries, Ltd./Mitsubishi Hitachi Power System, Ltd., euglena Co.,
Ltd., Ministry of Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport andTourism, Ministry of the Environment, New Energy and Industrial Technology Development
Organization and National Agriculture and Food Research Organization.
(3) Meetings Held and Summary of Proceedings
In addition to holding a total of six meetings as described below, from November on,
information was shared and discussions conducted within the subcommittee while separate- 18 -

discussions were conducted between the Secretariat and the relevant members, in addition toemail correspondence.
① First meeting: Thursday, July 3, 2014, 14:00~16:00 (Venue: Boeing Japan)
After confirming the purpose of the INAF and this subcommittee, a presentation was given
and questions asked about Mitsubishi Hitachi Power System, Ltd.’s woody biomass
gasification and FT synthesis technology. Later discussions were held on current issues to beaddressed as well as the content to be considered during the following subcommittee meetings.
② Second meeting: Wednesday, July 30, 2014, 14:00~16:00 (Venue: Boeing Japan)
Along with examining importation of raw material and products for fuel, the Green Earth
Institute gave a presentation about growth-arrested bioprocess technology and an overview ofthe business, and Nikki-Universal Co., Ltd. gave a presentation providing an overview and theachievements made with technology from Honeywell UOP (hereinafter, “UOP”), and thisinformation was shared.
③ Third meeting: Wednesday, August 20, 2014, 14:00~16:00 (Venue: Boeing Japan)
Taking into account previous discussions, the focus of the expected review of a supply chain
not dependent on municipal waste or microalgae was organized into four categories: 1)
importation of fuel produced overseas, 2) Japanese corporations producing fuel overseas andthen the importation of such fuel, 3) importation of raw material and then the production offuel in Japan, and 4) production of raw material and fuel production in Japan, and the current
status of each category was confirmed.
④ Fourth meeting: Friday, September 26, 2014, 13:30~15:00 (Venue: Boeing Japan)
Taking into account discussions at the third meeting, there are options with regard toimportation which can be envisioned no matter what raw material is used, and because it
would be more efficient to conduct a detailed review during the process of businessdevelopment, such a review by the subcommittee was shelved, and raw materials andtechnologies were selected that would be available for producing next-generation aviation
fuels by FY 2020, and discussions proceeded toward the formulation of a roadmap for fuelproduction.
⑤ Fifth meeting: Friday, October 10, 2014, 14:00~16:00 (Venue: Boeing Japan)
After presentations, which were given by the Green Earth Institute, Mitsubishi Hitachi Power
System and ITOCHU Corporation, on business scenarios conducive to examination of aroadmap, discussions were held.
⑥ Sixth meeting: Monday, October 20, 2014, 14:00~16:00 (Venue: Boeing Japan)
The Green Earth Institute and Mitsui Engineering & Shipbuilding Co., Ltd. each gave
presentations on a roadmap for next-generation aviation fuel using, respectively, non-ediblebiomass and waste food oil as the raw material. In order to commence production of
next-generation aviation fuel by FY 2020, roadmaps were compiled and drafted for the four
raw materials including natural oils, about which a presentation had been given by
Nikki-Universal Co., Ltd., and for woody biomass, about which a presentation have been
given by Mitsubishi Hitachi Power System, so as to pursue the feasibility of multiple raw
materials.
- 19 -

6. Subcommittee 4(1) General Overview of Activities
Information was shared regarding the current state of inquiries presented by eachsubcommittee about the legal system and procedures. And, the subcommittee members sharedthose matters that are feasible under the current legal system with regard to the business of
producing next-generation aviation fuels as currently anticipated. It is essential that any
examination be based on concrete business models including whether or not it is possible tosimplify procedures, and discussions were held about the legal system concerningnext-generation aviation fuels at each stage of the supply chain, quality management of fuel,and standards.
(2) Membership roster:A total of 19 organizations are members of the Fourth Subcommittee: IHI Corporation, Japan
Aerospace Exploration Agency, Green Earth Institute Co., Ltd., National Institute of Advanced
Industrial Science and Technology, Japan Petroleum Exploration Co., Ltd., Chitose Laboratory,
The University of Tokyo, Narita International Airport Corporation, Japan Asia Investment Co.,
Ltd., The Institute of Energy Economics, Japan, Nomura Research & Advisory Co., Ltd., The
Boeing Company (Secretariat), Mitsubishi Heavy Industries, Ltd./Mitsubishi Hitachi Power
System, Ltd., euglena Co., Ltd., Ministry of Economy, Trade and Industry, Ministry of Land,
Infrastructure, Transport and Tourism, Ministry of the Environment, New Energy andIndustrial Technology Development Organization and International Air Transportation
Association (IATA).
(3) Meetings Held and Summary of Proceedings
A total of five meetings were held as described below and information was shared as well as
deliberations conducted by the subcommittee.
① First meeting: Tuesday, July 8, 2014, 14:00~16:00 (Venue: Boeing Japan)
After confirming the purpose of the Fourth Subcommittee, the members exchanged ideas
about the direction of future discussions, and conducted hearings to inquire about requests forlegal system revisions from the First, Second and Third Subcommittees. Also, the Narita
International Airport Corporation gave a presentation about aircraft fueling facilities at the
airport, and information was shared about standards pertaining to aviation fuel as well as theactual state of fuel transport and fueling at the airport.
② Second meeting: Tuesday, July 15, 2014, 14:00~16:00 (Venue: Boeing Japan)
In a hearing with the First Subcommittee, views were expressed requesting flexible treatment
under the Waste Disposal Law for the transportation of waste material across administrative
districts, and, because such transportation is possible under the current system, it was
confirmed that such verification for compliance is needed based on a specific business plan.
Also, an overview was presented of the Cartagena Act 22, which is the system used for
22

Act on the Conservation and Sustainable Use of Biological Diversity through Regulations on the Use of Living
Modified Organisms (Act No. 97 of June 18, 2003). It is known as the “Cartagena Act” because it was enacted as adomestic law for ratifying the Cartagena Protocol (named after Cartagena, Columbia where the meeting was held
to debate the protocol).

- 20 -

genetically modified microalgae.
③ Third meeting: Tuesday, July 22, 2014, 14:00~16:00 (Venue: Boeing Japan)
During hearings with the Second and Third Subcommittees, it was pointed out that fuelproduction facilities are in the demonstration stage and that the amount of investment for plant
construction is large, so requests were made for public support, and discussion held which
took into account trends in other countries.
④ Fourth meeting: Thursday, December 4, 2014, 13:30~15:30 (Venue: Boeing Japan)
The requests for systematic reforms presented by the First, Second and Third Subcommittees
were compiled, and information was shared about systems and standards pertaining to aviation
fuel.
⑤ Fifth meeting: Thursday, January 15, 2015, 13:30~15:30 (Venue: Boeing Japan)
IATA gave a presentation about global trends concerning supply chains for next-generation
aviation fuels and quality inspection systems, and a question and answer session was held.
Information pertaining to aviation fuel systems and standards was compiled.
III. Review Results
1. Basic Understanding(1) Significance of Review① Positioning of Aviation Sector Measures in the Context of Worldwide Measures toCounter Global Warming
In the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC)
which was released in November 2014, the extreme likelihood was once again pointed out thatanthropogenic emissions of greenhouse gases are the dominant factor in global warming andthat sustained reductions are needed over a wide range of greenhouse gas emissions to limit
warming and other climate change. In December 2014, at the 20th Climate Change Conference(COP20) under the United Nations Framework Convention on Climate Change, debate ismoving forward on an international framework to take effect in 2020 in regard to mitigation
and adaptive strategies to address global warming23.
The IPCC, COP and other international organizations have indicated in great detail the risks
arising from climate change, including sea level rise, abnormal weather, natural disasters andso on, and the International Energy Agency (IEA) has pointed out that postponing thestrengthening of measures to address global warming will avert 1.5 trillion USD in low carbon
investment (approx. 180 trillion JPY 24) before the year 2020, but an additional investment in
the sum of 5 trillion USD (600 trillion JPY) will be required to subsequently return to thecourse of change to the proper direction25. In view of these circumstances, there is no question
that, in the aviation sector as well, industry, countries and the ICAO 26 need to collaborate to23

Global warming mitigation measures are measures for reducing emissions of greenhouse gases, and global
warming adaptive measures are measures to alleviate the adverse effects of warming by reconciling the way inwhich nature and society interact.
24
Converted at a rate of 120 JPY to 1 USD; hereinafter the same.
25
IEA: World Energy Outlook Special Report “Redrawing the energy-climate map”, 10 June 2013, P11.
26
The reduction of greenhouse gases from international airports is addressed through the ICAO in accordance- 21 -

strengthen measures to counter global warming.
② Utilization of Next-Generation Aviation Fuels for Reduction of Greenhouse Gases
and Energy Security in the Aviation Sector
The use of next-generation aviation fuels is one of the aviation sectors four principal measures
for reducing greenhouse gases along with the development and introduction of aircraft having
high fuel efficiency, improvement of flight systems, and the introduction of economicallycompetitive methods. Particularly, at the current point in time when practical implementation ofelectric propulsion aircraft is not anticipated, even looking ahead into the medium and long-term
future extending to the year 2050, next-generation aviation fuels and alternative aviation fuels,
which are drop-in fuels that may be utilized with current aircraft and related infrastructure, areregarded as an important means supporting a reduction in greenhouse gases. With demand foraviation transport and aviation fuel expected to increase in the future, assuming a mixture ratioof 10%, the quantity of next-generation aviation fuel to be demanded in 2050 is estimated to bearound 36.8 million to 57.5 million tons (oil equivalent conversion) 27.
The ICAO and IATA have also pointed out the importance of such next-generation aviation
fuels and are working to promote their introduction. After the 2013 ICAO General Assembly
passed a resolution requesting that the ICAO and member countries work to promote theintroduction of next-generation aviation fuels, the Alternative Fuels Task Force (AFTF),
which was established by General Assembly resolution, has been assessing the lifecycle ofnext-generation aviation fuels and forecasting production levels. Those results will be reported
to be General Assembly in 2016.
Also, countries are proceeding with consideration of next-generation aviation fuels from thestandpoint of energy security. Japan's Basic Energy Plan 28 also indicates that the country’s
energy security environment is becoming increasingly severe, and, in order to address such asituation, it is important that industry, government and academia collaborate and work together
to promote the introduction of next-generation aviation fuels.
③Sustainability of Next Generation Aviation Fuels
In the consideration of next-generation aviation fuels, it is necessary to attend to reductions ingreenhouse gases throughout the entire supply chain, competition with foodstuffs, anddiversity. Next-generation aviation fuels emit almost the same level of greenhouse gases whenburned as conventional aviation fuels do, but, if next-generation aviation fuels are derived
from biomass, then carbon is absorbed in the raw material growth process, so in terms of the
carbon cycle, it is possible to have zero emissions in terms of the carbon cycle. However,when viewing the entire supply chain, a review is required which takes into accountgreenhouse gas emissions during conversion of the land use associated with raw material
cultivation as well as production and transport. On this point, there are high expectations forwith the Kyoto Protocol adopted in 1997, and just as with international maritime transport, it does not cover
reduction targets for each country.
27
IEA Bioenergy: “The Potential Role of Biofuels in Commercial Air Transport – Biojetfuel”, September 2012, P8
28
Cabinet decision dated April 11, 2014 (see reference 8)- 22 -

cellulosic materials and microalgae from the standpoint of sustainability on account of areduction in greenhouse gases and avoidance of competition with foodstuffs, and thedevelopment of such technology are being advanced worldwide.
④ Business Development for Next-Generation Aviation Fuels
For business development, it is essential that a specific quantity of fuel be ensured which will
be committed to upgraded facilities, that there be collaboration and joint ventures of several
companies to that end, and that a supply system will be established for diesel and otherby-products. Also, the construction of a more general-purpose business system, rather than asystem requiring rigorous business terms, is necessary for developing the business ofnext-generation aviation fuel production in Japan as well as its subsequent expansion.
Business growth is achieved through technological innovation derived from accumulated
knowledge as well as significant cost reductions achieved in system optimization. It is
important that a demonstration project be instituted, and that such results lead to technologicalinnovation and cost reductions so as to generate momentum for specific business development.
Furthermore, in developing the supply chain business for next-generation aviation fuels, thequantity of demand is an important factor. Also, at one time, fuel costs accounted forapproximately one third of total expenses for aircraft transportation operations, and fuel prices
also are an important factor in the efforts, made for business development. Alternative aviation
fuels are a substitute for conventional aviation fuels, so demand over the short and medium
term will be influenced by changes in the price of conventional aviation fuel. However, inview of the aforementioned importance of alternative aviation fuels and next-generation
aviation fuels, the key to business development is for issues of demand and price to be
overcome through industry, government and academia collaborating to construct andimplement measures to promote the introduction of next-generation aviation fuels.
(2) Positioning of Review Results
Forty-six organizations with an interest in next-generation aviation fuels have participated in
the INAF’s planning, and the results of reviews during discussions which take into account theknowledge held by these organizations have been compiled in this report. This report ispresented as a roadmap that organizes, along with the period up to when production iscommenced, matters to be achieved as well as issues to be overcome in the future for eachprocess in the production of next-generation aviation fuels and supply of alternative aviation
fuels, for which there is a high likelihood of being produced by businesses in Japan.
This report presents an overall picture of the entire supply chain from procurement of raw
materials to production of next-generation aviation fuel, its mixture with conventional aviationfuel to produce alternative aviation fuel and then its transport and supply to aircraft, and thisreport offers a sketch with the aim of having next-generation aviation fuels introduced, and it
includes not only the results of reviews, but also the material used in the process ofdeliberation. In heading for business development in the future, the final round of discussions
necessary for specific business development are needed in the fields of government policy,- 23 -

products, raw materials, technology, sustainability, distribution, cost calculations, financing,equipment, and business administration based on this sketch.
In the future, it is hoped that business development will be advanced through the collaborationof a wide range of interested parties not limited to the organizations participating in the INAF.
(3) Consideration of the Implementing Enterprise①Advantages for the Implementing Enterprise
The implementing enterprise supporting the supply chain for next-generation aviation fuel will
be able to enjoy a variety of benefits by, above all, being involved in the aviation business,
which is expected to see dramatic growth. Also, it can be expected to respond appropriately toenergy trends. Moreover, over the short term, it will present an image of being an excellent
company with the capability to contribute to measures to counter global warming, whichappeal to clients, and over the medium and long term, the implementing enterprise will
construct a bridgehead obtaining a variety of operating profits including those from derivative
operations by occupying a front-runner position in the growing field of supplying
next-generation aviation fuels.
②Relationship with Stakeholders
For instance, as it can be understood from the fact that United Airlines concluded a sales
contract for alternative aviation fuel with AltAir Fuels in 2013 and that the airline is advancing
efforts related to the introduction of alternative aviation fuels combining next-generation
aviation fuel, the relationship between air carriers and fuel producers is the crux of the supply
chain for next-generation aviation fuel.
Also, looking at the example of KLM, the KLM Corporate Biofuel Programme was started in2012. In cooperation also with the companies participating in the programme (initially started
with eight companies in 2012, six more were added in 2013, two more along with one
government ministry in 2014 so that, as of October 2014, 17 organizations are participating),
one commercial flight per week is operated between New York and Amsterdam, using
alternative aviation fuel derived from biomass. Through such programs, participatingcompanies are able to appeal to society about the extent of their awareness of environmental
issues, and air carriers are able to acquire preparations for full scale use of alternative aviationfuel through the use of aviation fuels in this programme.
(4) Consideration of the System Encompassing Aviation Fuel Supply①Aviation Fuel Supply Chains and Systems(a) Conventional Aviation Fuels
The principle system applicable to the supply chain for conventional aviation fuels are largely
considered to be those shown in Chart 3. Conventional aviation fuel comes under hazardous
materials classified as “Category IV Class II petroleum” (flashpoint at one atmosphericpressure is 21°C or higher but lower than 70°C) as prescribed by the Fire Service Act. So, ineach process along the supply chain, the fuel is basically required to be safely handled under
the auspices of the Fire Service Act.
- 24 -

Chart 3: Principal Systems Applicable to Supply Chain for Conventional Aviation Fuel・Fire Service Act
1. Fuel production
・High Pressure Gas Safety Act
facilities
・Relevant ordinances of local governments
2. Tr anspor t

Etc.

・Fire Service Act (tankers, tank containers, tank trucks)
・Petroleum Pipeline Business Act (pipelines)

3. Airports

・Fire Service Act (oil storage tanks, high-end facilities and other aircraft fueling facilities in general)

4. Aircraft・Civil Aeronautics Act (airworthiness, examination of operating provisions)(b) Next-Generation Aviation Fuels
A general overview of the supply chain for next-generation aviation fuel is shown in Chart 4.
Chart 4: Supply Chain for Next-Generation Aviation Fuel
Conventional aviation fuelproduction/procurement

Conventional aviation fuelNext-generation aviation fuelproduction/procurement
Transport of conventional andnext-generation aviation fuelNext-generation aviation fuelTankers, tank containers, tanker trucks, pipelines

Tankers, tank containers, tanker trucks, pipelines

MixtureAt a mixing facility, next-generation aviation fuel is combined with conventional aviation fuelTransport ofalternative aviation fuelTankers, tank containers, tanker trucks, pipelines

Storage tanks
AirportHydrants

Fueler (fuel tank truck)

Servicer (fuel hose vehicle)
Aircraft

Aircraft

In terms of standards, alternative aviation fuels are certified and utilized as having the same
properties as conventional aviation fuels, and just as with conventional aviation fuels, they areapplicable under the system shown in Chart 3 above as pertains to the Fire Service Act andother laws and regulations. As for any impact that next-generation aviation fuels andalternative aviation fuels have on transportation facilities and aircraft fueling facilities atairports, it is important to steadily compile actual examples in consideration of safety while
also taking into account that alternative aviation fuels have the same properties asconventional aviation fuels.
Also, at major airports within Japan, tanks, hydrants and other fueling facilities are used
jointly by multiple petroleum wholesalers, who are the fuel vendors, and multiple air carriers,
who are the fuel purchasers, and, even if a certain air carrier would like to procure alternative
aviation fuel, the consent of all parties associated with the joint use fueling facility is necessary
and the setting of a new user fee will be necessary, so, when alternative aviation fuels arehandled at an airport, preparations are necessary for establishing such a system (see pp. 36~38of the attached documentation). The development of such a structure at airports will benecessary even at those airports where there is a fueler fueling system, hydrant fueling systemor a combination of the two.
②Standards for Aviation Fuel- 25 -

(a) International Standards for Aviation Fuel: ASTM Standards
With regard to aviation fuels, the performance necessary for safe operation of aircraft isprescribed and standards have been set to ensure such performance. With regard to standards
for aviation fuel, the de facto international standard is the ASTM standard, and a standard,
which is known as D1655, has been prescribed for conventional aviation fuels 29. Also, astandard, which known as D7566, has been prescribed for alternative aviation fuels which
combine next-generation aviation fuels with conventional aviation fuel.
(b) Procedure for Enacting ASTM Standards for Aviation Fuel
The procedure when establishing new ASTM standards pertaining to aviation fuel or whenamending the specifications of current standards is prescribed in ASTM D4054 30, and there
are three procedural stages. The test program in Stage I comprises procedures for certifyingthat candidate fuels do have an adverse effect on engine safety, durability or performance. The
tests, which aircraft manufacturers and aircraft engine manufacturers conduct internally, inStage II comprise procedures for certifying in-house that, when the candidate fuel is used, thecompany's products will function safely and there are no problems with airworthiness. During
this stage, the parties continue to coordinate their activities with aviation authorities. The
establishment or amendment of standards in Stage III comprise procedures through which thedraft investigation report prepared based on the test and verification results in the
aforementioned Stages I and II is examined by the technical committee responsible for aircraft
fuels at ASTM International to determine the advisability of enacting a standard 31.
(c) Standards for Alternative Aviation Fuels
The ASTM standard for alternative aviation fuels is D7566. This standard covers fuels
combining next-generation aviation fuels with conventional aviation fuel, and next-generation
aviation fuels are prescribed in annexes to D7566. Currently, there are three specified inannexes, FT SPK (Annex A1, established in 2009), HEFA SPK (Annex A2, established in2011) and SIP (Annex 3, established in 2014), and the mixture ratios are up to 50% for FT
SPK and HEFA SPK, and up to 10% for SIP. Also, in 2015 or 2016, the enactment ofstandards for three new fuels is expected, including High Freeze Point HEFA (Green Diesel).
D7566 prescribes the standards and test methods required when producing or shipping
alternative aviation fuels, but there are no stipulated procedures or quality control methods forverifying compliance with the standard during the distribution process after shipment from theproduction plant. Quality control in the distribution process is prescribed in otherdocuments 32.This point is the same also for the aforementioned (②(a)) D1655.
③Quality Control of Aviation Fuel(a) Overview
29

Jet A-1, which accounts for the bulk of the aviation fuel used in Japan, is one fuel that complies with D1655.
Available for purchase on the ASTM International website (http://www.astm.org/Standards/D4054.htm) (62
USD as of February 26, 2015). A user's guide is also available free of charge on the CAAFI website, a groupconcerned with next-generation aviation fuel (http://www.caafi.org/information/pdf/D4054_Users_Guide_V6_2.pdf).
31
According to the Midwest Aviation Sustainable Biofuels Initiative (MASBI), the amount of time and money required
when enacting a completely new ASTM standard for aviation fuel from scratch is at least three years and 30
million USD (approximately 3.6 billion JPY). See reference 14.
32
For example, ICAO 9977, EI/JIG Standard 1530, JIG 1, JIG 2, API 1543, API 1595, ATA-103, etc.
30

- 26 -

In contracts for sale of aviation fuel, the time at which ownership is transferred is generally at
the point when the fuel is feed into an aircraft at an airport, and the fuel vendor is required toprovide fuel, which has been ordered by the purchasing air carrier, that complies with thequality for said fuel at the time of fueling when ownership is actually transferred. As describedabove with regard to aviation fuels, conventional aviation fuels, next-generation aviation fuels
and alternative aviation fuels are certified under the respective standards D1655, D7566
Annex and D7566 at the time of production. Also, the aviation fuel fed to aircraft is supplied
after a process in which it is handled in transportation and at the airport, but the vendor, who
has ownership of the fuel during transportation to and storage at the airport, is required todeliver fuel, which meets the standard at the time of production, to air carriers in a state where
the quality is controlled, maintained and complies with the standard under an establishedtransportation and quality control method.
(b) International Handling of Aviation Fuel along the Supply Chain
Quality controls along the supply chain after certification under D1655 or D7566 at the time offuel production and shipment have been standardized in accordance with establishedcommercial practices, and such practices are shown in general in Chart 5, which is based on
ICAO documentation33.
Chart 5: Quality Control of Aviation Fuel along the Supply Chain

Note: Chart has been prepared based on IATA documentation from the Fourth Subcommittee (Attachment p. 150),
and p. 35 of the FAA documentation diagraming a synopsis of the ICAO documentation.

For certification at the time of fuel production and shipment, testing for compliance with all
quality standards prescribed in D1655 and D7566 is performed for each batch, and, whencertifying to the effect that compatibility with quality standards continues in each process ofthe supply chain, it is customary to conduct inspections of each batch according to 10 items34,
which have been simplified down from the inspection conducted at time of production andshipment. According to a survey conducted by the FAA, the former costs between 1000 and2000 USD, and the latter between 100 and 200 USD. Also, for testing under D7566, there aresome portions where modifications to D1655 testing devices need to be made, but suchmodifications are not considered that difficult of an obstacle for the introduction of alternative
aviation fuel 35.
33

ICAO 9977, Manual on Civil Aviation Jet Fuel Supply, First Edition - 2012
Density, distillation characteristics, flashpoint, freezing point, dissolved gum, copper corrosion, missed
separation index based on the micro-separometer method, color, thermal conductivity, and thermal stability
35
Reference 13, pp. 45 and 50.
34- 27 -

2. Roadmap(1) Roadmap for Establishing a Supply Chain for Next-Generation Aviation Fuels(See Chart 6)
As shown in Chart 6, a roadmap has been formulated for utilizing technology that companies
in Japan possess or have available to use to produce next-generation aviation fuels andestablish a post-production supply chain to begin making use of alternative aviation fuel.
Chart 6: Roadmap for Establishing a Supply Chain for Next-Generation Aviation Fuels
Production of next-generation aviation fuels
Fiscalyear Items within squares are Opportunities

Items in parentheses are Challenges

2015

Formulate business plan

2016

Design, construct andhave trial operation ofdemonstration plantfor producing nextgeneration aviation
fuels

2017

(demonstration project)(demonstration project)

2018

2019

2020

2021
～

(Raw material→）

Municipal
waste（ASTM standard→）

FT-SPK（ATJ *)

Micro
algae

Naturaloils

Usedfood oil

HEFA-SPK HEFA-SPK HEFA-SPK

Handling in
NonWoody
mixture,ediblebiomass transport,
biomass
airports,（ATJ *)FT-SPK

aircraft・Determine plant size and construction
location
・Verify applicable laws and systems
・Select and determine technology to beused・Verify treatment of intellectual property
rights・Set up a business promotion framework
・Determine the defrayment of expenses
and assignment of results
・Plan markets for by-products
Etc.
・Prepare basic design and detailed design
・Procure materials, equipment,machinery, etc.
・Manage project(work schedule, expenses, quality) Etc.

・Operate plant and establish
maintenance system
・Establish markets for by-products
・Analyze results of demonstration
plant ( production process, fuel(demonstration project)
quality )Etc.
・Reflect results of analysis ofdemonstration project in commercial
project
Expand scale
・Reduce production costs throughof production
system optimization and development(commercial project)of mass production technology
・Formulate business plan, and design,
construct and have trial operation ofcommercial plant, produce nextgeneration aviation fuels
Etc.
Producenext-generation
aviation fuels

Notes:• The size of the plant project increases in order from small to large beginning with lab, bench, demonstration andcommercial. Here, an assumption that the size will increase beginning in FY 2021 has been taken into account, and the
projects have been arranged so that a demonstration project is implemented by FY 2020 and a commercial project in FY
2021 or thereafter.
• The roadmap for each raw material is based on the results of reviews conducted by each subcommittee (see appendix(only Japanese version) pp. 76, 105, 135 and 136).
• Provisions for the ASTM standard ATJ have not been prescribed in D7566 Annex as of May 2015, but enactment of suchprovisions is anticipated in 2015 or 2016.

① Raw Materials
Of those raw materials, the technology for which Japanese companies possess or able to utilize
for producing next-generation aviation fuels, fuel production was reviewed and consolidated
into six raw materials, municipal waste, microalgae, natural oils (excluding waste food oils;
hereinafter the same), waste animal oil, non-edible biomass (cellulosic sugar; hereinafter thesame), and woody biomass, while giving overall consideration to the feasibility of production
from the standpoint of raw material procurement and the capability to address increased
demand in the future over the approximately five years remaining until FY 2020. After
realizing the production of next-generation aviation fuels and commencement of supply ofalternative aviation fuel by FY 2020 through an expansion of operations producing
next-generation aviation fuels from each of these raw materials which have the featuresdescribed below, supplies will be able to be increased thereafter.
- 28 -

With regard to municipal waste, Japan has a collection system in place, and the production
technology for this raw material has also been used in the GreenSky London Project, plus
there are ASTM standards as well. Research on microalgae has advanced as part of thestrategic next-generation biomass energy utilization and development project of the New
Energy and Industrial Technology Development Organization (NEDO), and there are ASTM
standards for production technology. The production technology for using natural oils as theraw material is being used already in projects in the United States and there are ASTM
standards enacted. Japan has a collection system for waste animal oil, this production
technology is being used in projects overseas, and there are also ASTM standards. The
enactment of ASTM standards for production technology employing non-edible biomass areunder review, and when the standards are established, the high yields from this raw material
will make it possible to produce fuel. Within the NEDO project, research on woody biomass isbeing advanced, and construction of an economically competitive collection system would
allow the untapped raw material in Japan to be utilized effectively. In the future, if demand
exceeds the supply of these raw materials, there is also the option of importing any of these
raw materials.
②Path for Establishing Supply Chain
In the limited time period of approximately five years, the business entity needs to be set up
for the fuel production project, a feasibility study conducted as well as other research done toformulate a business plan and then construct a plant (basic design, detailed design,
procurement, construction, trial operation), which will need to be completed by FY 2019 inorder to establish a supply chain for next-generation aviation fuels by FY 2020. Consideringthat plant design, construction and trial operation will require a period of two to three years, aroadmap is needed so that a business plan is formulated in FY 2015 or 2016, the plantdesigned and constructed in FY 2016 to 2018, trial operation conducted in FY 2019, and the
supply of fuel begun in FY 2020. Depending on the raw material, commencement of fuelsupply may also be anticipated in FY 2018 to 2019.
After next-generation aviation fuels are produced, they will be combined with conventional
aviation fuel to produce alternative aviation fuel, and then transported to airports where, after
being fed into aircraft, they will be used to fly the aircraft. For each process in this supply
chain, it is necessary to develop handling methods in accordance with international guidelines,
just as with conventional aviation fuels, no later than FY 2018 when production of
next-generation aviation fuels is anticipated to begin.
This roadmap is premised on there also being a policy initiative aimed at promoting the
introduction of next-generation aviation fuels. Also, to realize the roadmap, it is necessary tofurther improve, develop and optimize technology, establish markets for by-products, andcontinue to reduce costs with the aim of being competitive in terms of price with conventional
aviation fuels, and it is desirable that a detailed review be initiated immediately with the aimof business development.

- 29 -

③Facilitating Establishment of a Supply Chain
A supply chain for next-generation aviation fuels is established through the cooperation andcollaboration of interested parties in a diverse range of sectors. So, in order to set up thebusiness entity for the fuel project, public relations activities are needed to gain theunderstanding of businesses, investors and other related parties. Providing tours for VIPs, whocome to Japan for the Tokyo Olympics and Paralympics, of the supply chain from theproduction of next-generation aviation fuels all the way through to fueling aircraft withalternative aviation fuels as well as offering test flights in aircraft using alternative aviation
fuels are considered useful for expanding the business to other countries and attracting
investment from overseas.
In addition, the distribution of aviation fuel is premised on the fuels compliance with standards,
and what is needed for compliance with such standards is for the produced next-generationfuel to satisfy the properties prescribed in D7566 Annex, and the alternative aviation fuelwhich has been mixed with conventional aviation fuel to satisfy the properties prescribed in
D7566. There are also methods through which the fuels are certified by a third-party
organization. There are also cases where it may be considered useful in practical terms for thefuel sold to comply with standards verified by a third-party organization for the benefit ofJapanese businesses that newly produce next-generation aviation fuels and alternative aviation
fuels and for the broader distribution of such fuels in the future. From the same standpoint, it isalso useful to build up a track record of fuel use by having flights of aircraft using alternative
aviation fuel, which has been mixed with samples of next-generation aviation fuels produced
during trial operation of the plants. Furthermore, it is also important to calculate the reduction
effect on greenhouse gas emissions throughout the entire supply chain.
When formulating a detailed business plan, the particulars will be studied for the mixture ratioof next-generation aviation fuels, business expenses, estimated price of alternative aviation
fuel, quantity demanded, quantity capable of being supplied, and other items.
(2) Raw Material Procurement and Production①Municipal Waste(a) Business Overview
The existing collection system will be used to secure municipal waste for the raw material toproduce next-generation aviation fuel. It is anticipated that a large quantity of municipal waste
will be able to be secured in large urban areas, and locations for plant siting will be consideredwhile also taking into account the timing for renovation of a large incinerator facility. For fuelproduction, of the three available methods which are the method by which municipal waste isgasified, the synthesis gas cleaned up and then undergoing FT synthesizing and hydrocracking,the method using ATJ from ethanol produced directly from municipal waste, and the othermethod using ATJ from ethanol produced through synthesis gas from municipal waste,
Japanese companies possess technology for the method which uses FT synthesis and there are
already ASTM standards for this production method (FT SPK). This method is technicallyadvanced, while it is estimated that it will take several years until ASTM standards are enacted- 30 -

for the two fuel production methods employing ATJ from ethanol, therefore, businessdevelopment of fuel production using FT synthesis will move forward. The review of businessdevelopment will proceed with an eye toward the establishment of ASTM standards for fuelproduction by means of ATJ from ethanol.
(b) Path Leading to Commencement of Supply by FY 2020 (See Chart 7)
Technical advancements will be made at the level of the demonstration plant in gasification,cleanup, FT synthesis and upgrading technologies. When the implementing entity isdetermined, then business planning, demonstration plant design and construction can beundertaken from FY 2015 to 2017, and, after trial operation is conducted in FY 2017 and 2018,
the production of next-generation fuel can be expected to begin in FY 2018. The results fromthe demonstration plant will be taken into account, and, after studying whether or notelemental technology may be applied to a commercial plant as well as the most appropriate
conditions and disincentives for each process, confirmation will additionally be made with ademonstration plant as to whether or not capability can be demonstrated if these are combined,
and efforts aimed at developing a commercial project will begin in FY 2019. The same pathwill be taken for production using ATJ, if ASTM standards are prescribed.
Chart 7: Roadmap for Supply of Next-Generation Aviation Fuel Using Municipal Waste as the Raw Material
FiscalYear

Challenges

Opportunities< Formulation of business plan >2015 ● Set up business entity for demonstration project, review plant concept, formulate
business plan

■ Ascertaining the specific properties of the mystical waste
serving as a raw material, and selecting cleanup technology

2016 next-generation aviation fuel (1) >● Estimate cost of constructing demonstration plant, and construct the plant■ Appropriately managing project< Design, construction and trial operation of demonstration plant for production of< Design, construction and trial operation of demonstration plant for production of
next-generation aviation fuel (2) >2017 ● Construct demonstration plant and prepare for trial operation< Increase in production scale (1) >■ Appropriately managing project■ Establishing trial operation framework● Launch organization to study commercial plant project< Design, construction and trial operation of demonstration plant for production of
next-generation aviation fuel (3) >● Trial operation of demonstration plant< Production of next-generation aviation fuel (1) >2018● Produce next-generation aviation fuel at demonstration plant< Increase in production scale (2) >● Determine scale and site for construction of commercial project, and review systems
for collecting municipal waste over a wide area

< Production of next-generation aviation fuel (2) >● Supply alternative aviation fuel which combines the fuel produced at the2019
demonstration plant< Increase in production scale (3) >● Prepare basic design of commercial plant< Production of next-generation aviation fuel (3) >2020● Operate demonstration plant, conclude operations, and reassess them
< Increase in production scale (4) >● Make a determination on investment in commercial project2021 < Increase in production scale (5) >～ ● Design, construct, operate and maintain commercial plant■ Appropriately managing project■ Analyzing results of demonstration plant operation■ Appropriately managing project■ Analyzing results of demonstration plant operation■ Reflecting the results of analysis of demonstration plant in the basic
design for a commercial plant■ Conducting feasibility study for commercial project■ Reflecting the results of analysis of demonstration plant in the commercial
project■ Soliciting and securing operators, investors and other parties to be
involved in commercial project■ Establishing the business entity to produce next-generation aviation fuelusing municipal waste as the raw material■ Advancing the commercial project to be undertaken by the business entity

Notes: This is a roadmap organizing the path and issues to be addressed which are anticipated for producing
next-generation aviation fuel and commencing the supply of alternative aviation fuel by FY 2020 on thebasis of the review results produced by the First Subcommittee.

(c) Position of this Path in the Context of the Overall Supply of Alternative Aviation FuelJapan has a system for collecting municipal waste and it is easy to procure this raw material.
- 31 -

FT synthesis-based fuel production technology has been adopted in the GreenSky London
Project and the reliability of the technology is high at the current point in time, so this isconsidered to be one fuel production path effective for establishing a supply chain fornext-generation aviation fuel by FY 2020. ATJ-based production from ethanol is also similarly
considered to be an effective path because the enactment of the relevant ASTM standards isanticipated in the near future. Also, because a large quantity of municipal waste is discharged
in Japan, this path can be expected to allow for an increase in the quantity of fuel produced in
keeping with increases in demand in the future, if a municipal waste collection system over abroad area can be operated in an economically competitive manner.
(d) Characteristics of the BusinessThis business utilizes the existing collection system to procure municipal waste within Japan,
and using this as the raw material, produces next-generation aviation fuel domestically. It
contributes to a recycling-oriented society in terms of the use of waste as a resource. Also, thequantity of municipal waste and the amount of air transportation, which is proportional to thequantity of fuel that needs to be produced, will tend to increase along with the increase inpopulation, so procurement of this raw material accompanying an expansion in production isconsidered to be relatively easy.
(e) Evaluation
Most municipal waste is already being recycled, but taking into account the quantity ofmunicipal waste available as a raw material, the presence of a collection system, and thedegree to which utilization technology has advanced, municipal waste can be expected to serve
as a path providing the capability for an early start to production as well as allow for future
increases in supply to produce next-generation aviation fuel in Japan.
In preparation for business development, it is important that improvements be made which are
tailored to the business of next-generation aviation fuel in terms of the collection of large
quantities of raw material, the gasification and reforming facilities when producing synthesis
gas from municipal waste, and the cleanup technology used in the process prior to FT
synthesizing of synthesis gas.
One criterion concerning the quantity of raw material to be collected for business development
is that securing 2000 tons per day of municipal waste permits 1000bpsd 36 (oil equivalent
conversion of approximately 159L each day) of next-generation aviation fuel to be produced.
This is equivalent to the amount of municipal waste discharged by 2 million people, and,depending on the site of the production plant, municipal waste will need to be collected frommultiple local governments. If an integrated processing is sought for collecting general waste
and industrial waste as well as transportation of the waste across prefectural and municipal
boundaries in order to secure such a large quantity of municipal waste, then it needs to be kept
in mind that procedures will be required under the Waste Disposal Law. Existing gasification36

bpsd is an abbreviation of barrel per stream day, referring to the quantity processed per day when the facility is
operating at full capacity. One barrel of crude oil is approximately 159 L.

- 32 -

reforming facilities are based on the concept of averting any generation of dioxin and having
zero landfill disposal, so the gasification and reforming process is not necessarily suited to the
production of synthesis gas conducive for aviation fuel production. Also, cleanup technology
needs to be improved so as to increase the precision with which materials that are
anti-catalysts in the FT synthesis and contained in synthesis gas are removed by a combinationof the present technologies that have already been developed.
②Microalgae(a) Business Overview
Next-generation aviation fuel is produced by hydrorefining oil content known as algae oil,which is produced by microalgae. One continuous process from the growth of microalgae toproduction of next-generation fuel is the focus of this operation. Taking into account thatphotosynthesis causes microalgae to propagate, the microalgae is cultivated in warm locations
where there is ample sunlight and in outdoor cultivation facilities such as pools, so locations
for siting such a facility were reviewed with an eye toward cultivation and fuel production
overseas. A business operation is envisioned through collaboration with parties mainly
associated with the enterprise pursuing research as part of the NEDO project. There are
already ASTM standards for the production technology (HEFA-SPK).
(b) Path Leading to Achievement of Goal (See Chart 8)
In FY 2015 and 2016, tests will be conducted on large-scale cultivation of microalgae, and an
integrated process developed extending from raw material production to fuel production. In
FY 2016 and 2017, a demonstration cultivation facility will be constructed at a location
suitable for the cultivation of microalgae, and along with expanding the scale of production
and considering cost-cutting measures, the properties of algae oil, which differ depending on
the type of microalgae, will be taken into account and consideration given to sharing therefinement process. In FY 2018 and 2019, stable large volume cultivation of microalgae will
be verified, and issues to be addressed in moving toward the commercial project identified aswell as points studied for improvement. In FY 2020, the production and supply ofnext-generation aviation fuel will commence, but it is envisioned that efforts will continue tobe advanced for increasing the scale of cultivation and improving efficiency of the production
process, as well as increasing the quantity of next-generation aviation fuel produced.
(c) Position of this Path in the Context of the Overall Supply of Alternative Aviation Fuel
Technology will need to be established for large-scale stable cultivation and cost reductions,and the quantity of next-generation aviation fuel that will be able to be produced in FY 2020
will be limited. After FY 2020, when technology has been established for large-scale stable
cultivation of microalgae at a reduced cost, this path is expected to allow for an increase in the
production of next-generation fuel in keeping with future rising demand through theprocurement of large volumes of the raw material microalgae due to the high reliability ofhydrorefining technology for producing next-generation aviation fuel from algae oil.
(d) Characteristics of the Business- 33 -

Because it is anticipated that locations having a climate suitable for the cultivation of
microalgae are overseas, supply chains are possible for both the production of next-generation
aviation fuel overseas and then its importation into Japan as well as production overseas andits application to air carriers at local airports. Because microalgae absorb carbon during thegrowing process, it can be regarded as having zero emissions in the carbon cycle, and issustainable in that sense. It also contributes to the formation of a recycling-oriented society. In
addition, raw material production for next-generation aviation fuel is incorporated into theoperation, so the procurement of raw material accompanying an increase in production isconsidered to be relatively easy.
Chart 8: Roadmap for Supply of Next-Generation Aviation Fuel
Using Oil Produced from Microalgae as the Raw Material
FiscalYear

Challenges

Opportunities<Formulation of business plan (1)>2015

● Increase productivity of microalgae cultivation● Develop a process integrating the extraction of algae oil from cultivation and the
production of next-generation aviation fuel from algae oil● Determine locations suitable for cultivation■ Establishing technology for large volume and stable cultivation of microalgae■ Taking into account that the properties of algae oil produced differ dependingon the type of microalgae, and conducting review on sharing processes when
producing fuel from each of these algae oils
■ Consolidating the issues to be addressed accompanying importation of algae
oil into Japan< Formulation of business plan (2) >

2016

2017

● Increase productivity and formulate business plan which takes into account the
integrated process● Construct a demonstration level large volume cultivation facility at a site suited for
cultivation< Design, construction and trial operation of demonstration plant for production of
next-generation aviation fuel (1) >● Review technology for low-cost, large volume and stable cultivation of microalgae● Design and construct demonstration plant for production of next-generation aviation fuel■ Consolidating a process for sharing and a process for not sharing theprocesses for producing fuel from algae oils having different properties■ Appropriately managing project< Design, construction and trial operation of demonstration plant for production of
next-generation aviation fuel (2) >2018 ● Conduct trial application of technology for low-cost, large volume and stable cultivation
at a demonstration cultivation facility● Design and construct demonstration plant for production of next-generation aviation fuel< Design, construction and trial operation of demonstration plant for production of
next-generation aviation fuel (3) >2019 ● demonstration project
Construct and have trial operation of demonstration plant for production of next● generation aviation fuel< Production of next-generation aviation fuel >● Cultivate microalgae and demonstration facility, and produce next-generation aviation
2020 < Increase in production scale (1) >● Increase scale of microalgae cultivation taking into account the scale of the commercial
project< Increase in production scale (2) >2021 ● Advance commercial project which takes into account the scale of microalgae able to be
cultivated～● Increase scale of next-generation fuel production by increasing scale of cultivation

Notes:■ Appropriately managing project■ Appropriately managing project■ Analyzing results of demonstration plant operation■ Reflecting the results of analysis of demonstration plant in the commercial
project■ Securing site for large volume cultivation■ Reducing cultivation costs in stages, and improving cultivation productivity byincreasing cultivation scale■ Improving refining efficiency when producing next-generation aviation fuelfrom algae oil

This is a roadmap organizing the path and issues to be addressed which are anticipated for producing
next-generation aviation fuel and commencing the supply of alternative aviation fuel by FY 2020 on the basis of
the review results produced by the Second Subcommittee.

(e) Evaluation
Although there are issues to be addressed concerning microalgae in reaching a mass
production level, oil productivity per unit area is high and competition with foodstuffs can be
mitigated, so the previous understanding held in 201237 when there was great expectation for
its use as a raw material in fuel production still holds today, and, from a long-term perspective,
it is a segment enabling preparation for the production of next-generation aviation fuel that isboth feasible and sustainable.

37

Council on Competitiveness-Nippon (reference 17), p. 1.

- 34 -

In preparation for business development, a large-volume stable cultivation technology needs tobe established and productivity increased of the microalgae cultivation, and taking into
account the production process for algae oil and the properties of algae oil which differ
depending on the type of microalgae, an economically competitive process for production offuel from algae oil needs to be established. It is important that enterprises engaged in thecultivation of microalgae and production of algae oil work together to set production targets
and milestones and then achieve them so as to resolve these issues to realize businessdevelopment.
In promoting this business in the future, attention also needs to be given to procedures under
the legal system. When expanding this business on a commercial scale, it is anticipated thatmicroalgae will be cultivated in an open system. But, if the cultivated microalgae is genetically
recombined, then procedures will be required in accordance with the Cartagena Act (see note
22), which prescribes restrictions on the use of genetically modified organisms. In cases where
non-native species of microalgae are used as well, the Quarantine Act, Invasive Alien Species
Act and other laws will need to be kept in mind based on the specific operational configuration.
Also, if the next-generation aviation fuel produced from microalgae (HEFA SPK) consists ofsaturated hydrocarbons, such production may fall within the purview of chemical substances 38
requiring notification in accordance with the Act on the Evaluation of Chemical Substances
and Regulation of Their Manufacture, so such matters need to be addressed early, including
the confirmation of any procedures.
③ Natural Oils (Excluding Waste food oil)(a) Business Overview
Utilizing UOP’s next-generation aviation fuel production technology, several types of naturaloils are used as raw material and put through a preprocess hydroprocess and fractionation
process to produce the next-generation aviation fuel, Honeywell Green Jet FuelTM. It isenvisioned that the implementing enterprise will operate the business based on a licensing
agreement with UOP. There is already an ASTM standard for the production technology(HEFA-SPK).
(b) Path Leading to Commencement of Supply by FY 2020 (See Chart 9)
In FY 2015, several types of raw materials will be selected for use, and simulations of the
production of next-generation aviation fuel performed. In FY 2016, the basic design will be
formulated for a demonstration plant with the detailed design, construction and trial operationof the plant taking place from FY 2017 to 2018. Production of next-generation aviation fuelwill begin at the plant in FY 2019. From FY 2020 on, it is anticipated that the results of the
production process for next-generation aviation fuel at the demonstration plant and products
will be taken into account to design and construct a commercial plant increasing the quantity
processed by three to five times so as to augment the quantity of next-generation fuelproduced.

38

MITI2-10 “Alkane (C=10~29),” MITI2-9 “Nonane,” MITI2-8 “octane,” etc.

- 35 -

Chart 9: Roadmap for Supply of Next-Generation Aviation Fuel Using Natural Oils as the Raw Material
FiscalYear

Opporturnities

Challenges< Formulation of business plan >2015● Select multiple candidate raw materials● Conduct simulation of next-generation aviation fuel production process using UOPtechnology■ Selecting raw materials that can be stably procured■ Determining implementing enterprise< Design, construction and trial operation of demonstration plant for production of
next-generation aviation fuel (1) >2016 ● Conduct trials for producing fuel from selected candidate raw materials(oversees implementation anticipated)● Prepare basic design for demonstration plant■ Concluding licensing and engineering agreement with UOP< Design, construction and trial operation of demonstration plant for production of2017 next-generation aviation fuel (2) >● Prepare detailed design for demonstration plant■ Appropriately managing project2018 next-generation aviation fuel (3) >● Construct and have trial operation of demonstration plant■ Appropriately managing project< Design, construction and trial operation of demonstration plant for production of< Production of next-generation aviation fuel (ongoing from 2019) >2019● Operate demonstration plant, and produce next-generation aviation fuel< Increase in production scale (1) >● Commence basic design for commercial plant2020 < Increase in production scale (2) >～ ● Prepare basic design, detailed design for commercial plant, construct and operate■ Narrowing down raw materials to ensure operational stability of plant■ Commencing plant operation, appropriately managing andmaintaining operations■ Reflecting results of demonstration plant operation■ Increasing scale of demonstration plant production capacity by 3~5Notes: This is a roadmap formulated from the standpoint of back casting on the assumption that production of next-generation
aviation fuel and supply of alternative aviation fuel will commence by FY 2020 on the basis of the review results
produced by the Third Subcommittee which take into account knowledge possessed by Nikki-Universal Co., Ltd.

(c) Position of this Path in the Context of the Overall Supply of Alternative Aviation Fuel
Because the fuel production technology used in this path has been developed by somecompanies in the United States for commercialization39 and natural oils for the raw material
can be physically gathered in areas within Japan, this is considered to be a fuel production paththat will be effective for establishing a supply chain for next-generation fuel by FY 2020. Also,
if natural oils can be collected in large volume in an economically efficient manner, this pathcan be expected to increase the quantity of fuel produced in keeping with future increases indemand.
(d) Characteristics of the BusinessThis business collects natural oils available in regions within Japan and uses them as the raw
material to produce next-generation aviation fuel in Japan. Next-generation aviation fuel canbe produced at one plant using tallow, non-edible oil and many other types of natural oils forthe raw material. Also, in the production process, Honeywell Green DieselTM is also produced
as a by-product, so, if as anticipated High Freeze Point HEFA is prescribed in ASTM D7566
Annex in 2015 or 2016, it is expected that next-generation aviation fuel will be able to be
produced in large volume at a low cost by FY 2020.
(e) Evaluation
Next-generation aviation fuel using natural oils as the raw material is widely produced aroundthe world. UOP utilizes tallow, inedible oil and other natural oils as the raw material at its
demonstration plant in the United States to produce 250 barrels per day (approx. 40kL) of
39

The technology to be used for the United Airlines project at Los Angeles Airport in the United States is UOP’s
Renewable Jet Process. (See note 6 for information about this project)- 36 -

next-generation aviation fuel (Honeywell Green Jet FuelTM), and supplies alternative aviationfuel for demonstration flights to the US military as well as private air carriers. There is also
spinoff technology40, which UOP developed jointly with other companies and has a businesstrack record on a commercial scale of over 10,000bpsd of raw material processed, and thetechnology has been evaluated as highly reliable.
Although a characteristic of this business is that several types of natural oils can be used as theraw material to produce fuel at one plant, in order to ensure operational stability of the plant in
preparation for business development, it is useful to limit the natural oils for raw material. For
that reason, when the operation is initially begun, several types of natural oils will be used as
the raw material in order to ensure quantity, but, thereafter, as operations are continued, it will
be important to select appropriate raw materials and ensure their procurement so that thisbusiness may develop. Also, expanding outlets for High Freeze Point HEFA (Green Diesel) bystrengthening collaboration with the automobile industry is also useful for increasing
production of next-generation aviation fuel. Just as with microalgae, the relationship between
HEFA SPK and regulations concerning chemical substances needs to be kept in mind.
④Waste food oil(a) Business Overview
Existing collection systems are utilized to secure waste food oil for raw material to produce
next-generation aviation fuel through refining and upgrading. There are already ASTM
standards for the production technology (HEFA-SPK). Focusing on Chiba, southern Ibaraki,
southern Saitama and eastern Tokyo where large quantities of waste animal oil are collected,
and an implementing enterprise is envisioned which will comprise three processes: raw
material supply, preparation of crude fuel, and separation/refinement. The technology for
producing next-generation aviation fuel by using waste animal oil as the raw material and thenpreparing crude fuel and separating and refining it makes use of the same technology as
production from algae oil and natural oils.
(b) Path Leading to Commencement of Supply by FY 2020 (See Chart 10)
In FY 2015, the properties of waste animal oil capable of being collected will be ascertained to
select the refining technology applicable to such properties, and the optimum site for the fuelproduction plant will be reviewed based on routes along which waste food oil is collected. In
FY 2016 to 2018, the basic design and detailed design for the fuel production plant will be
prepared and the plant constructed. In FY 2018 and 2019, the plant will undergo trial operationand improvement by taking into account the results of tests and analyses of product samples.
The production of next-generation aviation fuel and the supply of alternative aviation fuel will
begin in FY 2020. From FY 2020 on, candidate sites for second and third operations will be
The derived technology is the EcofiningTM Process, which was jointly developed by UOP together with Italy's
ENI SpA. Using this technology, a plant, which has the capability to produce more than 130 million gallons per
year of green diesel (approximately 20 million kL), has been operating since 2014 (in Louisiana, United States)(according to a UOP press release dated March 15, 2014(*)).The plant does not produce aviation fuel, but theEcofiningTM Process is a technology that is also capable of producing next-generation aviation fuel.
(*) http://www.uop.com/?press_release=honeywell-uop-renewable-fuel-technology-powering-largest-commercial-advanced-biofuel-facility-in-u-s
40- 37 -

selected and reviews will be conducted on expanding the operation after feasibility studies are
performed while taking into account the quantity of waste animal oil that is able to be secured.
(c) Position of this Path in the Context of the Overall Supply of Alternative Aviation FuelJapan has a commercial system for collecting waste food oil and procurement of the raw
material is easy. By adopting technology from UOP in the United States, Neste Oil Oyj in
Finland or some other source that is highly applicable to the waste food oil whose collection is
anticipated, this is considered to be one path for fuel production where the reliability of thetechnology is high at the current point in time and will be effective for establishing a supply
chain for next-generation aviation fuel by FY 2020. On the other hand, the theoretical level41
of next-generation aviation fuel supply which is able to be produced from the procurable waste
food oil is not sufficient to meet estimated future demand 42 and the likelihood of increasing
the scale of production is low43, so it is positioned as a supplement until large-scale fuelproduction can be realized.
(d) Characteristics of the BusinessThis business utilizes the existing collection system to procure waste food oil within Japan,
and produce next-generation aviation fuel domestically using this oil as the raw material. It
contributes to the formation of a recycling-oriented society in terms of utilizing waste as aresource. However, it needs to be kept in mind that, presently, most of the waste food oil inJapan is added to compound feed, or is put to use as a raw material for soap and otherindustrial applications.
(e) Evaluation
Although most of the waste food oil in Japan is currently being put to other uses, because acollection system is in place and the Boeing company's activities in China44 have moved
forward to develop the production technology to a high degree of proficiency, it is expected to
be a strong path which will allow for the early production of next-generation aviation fuel.
In preparation for business development, the number one issue to be addressed is maximizing
the quantity of waste animal oil collected, and, the optimum technology needs to be adopted
for producing the greatest quantity of fuel possible in accordance with the physical propertiesof the waste food oil raw material, for which the quantity collected is able to be maximized.

41

The current quantity of commercial waste food oil collected is 300,000 tons per year (estimate), and, evenassuming that all of this is able to be used as raw material, the quantity of next-generation fuel produced isestimated to be around hundred and 120,000 kL.
42
The quantity of conventional aviation fuel consumed by Japan's air carriers is approximately 8.5 million kL(2013 Annual Report on Air Transport Statistical Surveys, Ministry of Land, Infrastructure, Transport andTourism), and, even if alternative aviation fuel (50% mixture ratio) was used for 10% of that, the quantity ofnext-generation aviation fuel demanded would be approximately 430,000 kL.
43
In Japan with its decreasing population, because an increase in the quantity collected cannot be anticipated andmost of the commercial waste animal oil is already used for livestock feed (added to component feed), forindustry (soap, paint, ink, etc.), there are limits on the quantity of waste food oil which can be used as raw
material for next-generation aviation fuel.
44
On March 21, 2015, the Boeing Company used alternative aviation fuel on a Hainan Airlines commercial flight(B737-800) from Shanghai to Beijing. It was a 50% mixture of next-generation aviation fuel produced by Sinopec(China Petrochemical Corporation) using waste food oil collected from restaurants in China as the raw material.

- 38 -

Just as with microalgae, the relationship between HEFA SPK and regulations concerningchemical substances needs to be kept in mind.
Chart 10: Roadmap for Supply of Next-Generation Aviation Fuel Using Waste food oil as the Raw Material
FiscalYear

Opporturnities

Challenges< Formulation of business plan (1) >● Survey the storage quantities and unit prices of waste animal oil in the areas targeted
for this business2015 ●
Ascertain the physical properties of the waste food oil which can be collected, and therefining technology applicable to such physical properties●
Select the most appropriate candidate sites for the plant along the collection route< Formulation of business plan (2) >2016● Determine the fuel production capacity of the plant in keeping with the quantity of
waste food oil which can be collected and used
● Determine the implementing enterprise, and review operational profitability■ Acquiring license for selected refining technology■ Finding location for production facility■ Determining production capacity of plant, taking into accountoperational profitability■ Reviewing production process, and calculating greenhouse gas
emissions effect< Design, construction and trial operation of demonstration plant for production of next-

2017 generation aviation fuel (1) >● Prepare basic design and detailed design for plant, and initiate construction work
< Design, construction and trial operation of demonstration plant for production of
next-generation aviation fuel (2) >2018 ● Construct, complete and have trial operation of the plant● Conduct tests and analyses of the quality of fuel samples< Design, construction and trial operation of demonstration plant for production of
next-generation aviation fuel (3) >2019● Perform plant improvement work based on the results of fuel sample tests andanalyses● Conduct trial operation after plan improvements, produce fuel samples, and test andanalyze them

■ Appropriately managing project■ Appropriately managing project■ Assessing quality of first fuel samples■ Improving apparatus to enhance fuel quality■ Assessing quality of second fuel samples< Production of next-generation aviation fuel >2020 ● Operate fuel production plant, and produce next-generation aviation fuel～Notes:■ Commencing operation of plant, and appropriately managing andmaintaining operation

This is a roadmap formulated from the standpoint of back casting on the assumption that production of
next-generation aviation fuel and supply of alternative aviation fuel will commence by FY 2020 on thebasis of the review results produced by the Third Subcommittee which take into account knowledge
possessed by Mitsui Engineering and Shipbuilding Co., Ltd.

⑤Non-edible biomass (Cellulosic Sugar)(a) Business Overview
Sugar solution is produced through scarification of non-edible biomass, which then undergoes
bioconversion to produce isobutanol and then ATJ to produce next-generation aviation fuel.
The Green Earth Institute supports the production of isobutanol from sugar solution, and it isanticipated that an operation in collaboration with other enterprises will manage the upstream
portion from securing raw materials to the production of sugar solution as well as thedownstream portion of the production of next-generation aviation fuel from isobutanol. Largevolume production in the future is conditioned on the procurement of the raw material
non-edible biomass from the United States or other countries outside Japan. Production of
isobutanol from sugar solution uses a growth-arrested bioprocess. Because the microorganisms
used in the production process do not propagate, this fuel production is expected to have highraw material yield without energy loss from propagation and thus be highly productive. ASTM
is currently reviewing standards for ATJ from isobutanol.
(b) Path Leading to Achievement of Goal (See Chart 11)
In FY 2015 and 2016, samples of isobutanol will be produced for next-generation aviation fuelproduction, and a fuel production plant will be designed, constructed and undergo trial
operation in FY 2016 and 2017. Also when ASTM standards are enacted for ATJ from- 39 -

isobutanol, from the standpoint of promoting fuel sales, it is anticipated that certification,
stating that the production method for this operation complies with ASTM standards, will beacquired from a third-party organization. In FY 2018, next-generation aviation fuel will begin
to be produced at the initially constructed plant, and the results obtained from this plant will betaken into account in proceeding to design, construct and conduct trial operation of a plant onan even bigger scale. Thereafter as well, it is anticipated that the operation will be expanded byfurther increasing plant scale and licensing the growth-arrested bioprocess so as to further
increase production.
Chart 11: Roadmap for Supply of Next-Generation Aviation Fuel
Using Non-edible biomass (Cellulosic Sugar) as the Raw Material
FiscalYear

Opporturnities

Challenges< Formulation of business plan >● Verify the expanded scale of isobutanol production for next-generation aviation fuel2015 ● Produce sugar solution from non-edible biomass, collaborate with partner companies
on the production of next-generation aviation fuel from isobutanol, and formulate ab i constructionl< Design,
and trial operation of demonstration plant for production of nextgeneration aviation fuel (1) >2016 ● Have outside contractor produce samples of next-generation aviation fuel from
● isobutanol■ Verifying the expanded scale of isobutanol production employing growth-arrested
bioprocess■ Forming the next-generation aviation fuel production enterprise with partnercompanies■ Contracting to commission production of next-generation aviation fuel samples
from isobutanol■ Enacting ASTM standards for ATJ< Design, construction and trial operation of demonstration plant for production of nextgeneration aviation fuel (2) >● Construct and have trial operation of demonstration plant for fuel production● After ASTM standard enacted for ATJ, certify that the fuel produced in this operation

2017< Increase in production scale (1) >● Site for construction of commercial fuel production plant■ Appropriately managing project■ Assessing profitability of entire process from raw material procurement to fuelproduction< Design, construction and trial operation of demonstration plant for production of nextgeneration aviation fuel (3) >● Conduct trial operation of demonstration plant for fuel production

2018■ Appropriately managing project■ Establishing production structure for demonstration plant■ Analyzing operational results of demonstration plant■ Reflecting results of demonstration plant analysis in commercial project< Production of next-generation aviation fuel (ongoing from 2018) >● Produce next-generation aviation fuel at demonstration plant< Increase in production scale (2) >● Formulate business plan for commercial project● Procure financing for commercial project, and design and construct commercial plant

2019
2020

< Increase in production scale (3) >■ Appropriately managing project● Construct and conduct trial operation of commercial plant< Increase in production scale (4) >● Produce next-generation aviation fuel at commercial plant
2021 < Increase in production scale (5) >～ ● Increase size and expand commercial production plant for next-generation aviation fuelNotes:■ Appropriately managing project■ Innovating technology for mass production

This is a roadmap organizing the path and issues to be addressed which are anticipated for producing
next-generation aviation fuel and commencing the supply of alternative aviation fuel by FY 2020 on thebasis of the review results produced by the Third Subcommittee which take into account knowledge
possessed by the Green Earth Institute.

(c) Position of this Path in the Context of the Overall Supply of Alternative Aviation Fuel
By using growth-arrested bioprocess which has high raw material yield without the energy
loss accompanying propagation of micro-organisms, which was inevitable with conventional
fermentation methods, highly productive fuel production has been made possible. So, if
non-edible biomass can be collected in large volume and in an economically efficient manner,then this path can be expected to increase the quantity of fuel produced in keeping with future
increases in demand.
(d) Characteristics of the Business
Fuel production overseas is also anticipated to enable collaboration with other enterprises in
the upstream and downstream portions aside from the production of isobutanol from sugar
solution as well as to enable stable and inexpensive procurement of the raw material- 40 -

non-edible biomass. In such a case, supply chains are conceivable for both importing into
Japan as well as supplying air carriers at local airports overseas. Also, because the raw
material non-edible biomass absorbs carbon during the growing process, it can be regarded ashaving zero emissions in terms of the carbon cycle, and, in that sense, this business issustainable.
(e) Evaluation
Growth-arrested bioprocess, which is at the core of this operation, has properties that differ
from conventional fermentation methods. While, conventionally, only C6 sugars could be used
for biomass and microorganisms would propagate during fermentation generating
fermentation inhibitors and decreasing productivity, the growth-arrested bioprocess is notdependent on propagation, so productivity does not decline even if fermentation inhibitors arepresent. In addition, non-edible biomass C5 and C6 sugars can be used. This is expected to bea highly efficient method for producing isobutanol from raw material.
In preparation for business development, it is necessary to increase the overall scale of theprocess integrating the downstream portion from securing raw material to sugar solution
production as well as the upstream portion covering growth-arrested bioprocess and the
production of next-generation aviation fuel from isobutanol. Besides isobutanol,
growth-arrested bioprocess also enables conversion to amino acids, and achievements havebeen made in increasing the scale of the conversion process to amino acids. Because there areexamples of such implementation on a scale approaching commercialization in the UnitedStates, it is important that such cases be taken into account when realizing an increase in scale.
⑥Woody Biomass(a) Business Overview
Using woody biomass as the raw material, next-generation aviation fuel is produced byupgrading, after FT synthesis, the source gas produced with biomass gasification technology.
It is anticipated that FT synthesis, which uses untapped biomass in Japan, will be performed at
locations near the raw material and the upgrading from FT synthesized crude fuel will be
implemented intensively at a large scale facility. There is an ASTM standard for the
production method (FT-SPK). Biomass gasification technology uses oxygen and water vapor
as the gas supplying agents to burn some of the raw material to form a high temperature fieldof 800 to 1200°C, and this heat converts the biomass into source gas whose principal
components are hydrogen and carbon monoxide (thermal decomposition gasification).
(b) Path Leading to Achievement of Goal (See Chart 12)
In FY 2015, construction will move forward on an integrated production system fornext-generation aviation fuel. In FY 2016, a system will be structured for collecting untappedwoody biomass as well as a system for returning project benefits, including greenhouse gas
emissions effects, to the parties comprising the supply chain so as to form an enterprise for thedemonstration plant project for fuel production. From FY 2017 to 2019, the demonstration
plant will be designed, constructed and undergo trial operation, and the production of- 41 -

next-generation aviation fuel will begin in FY 2020. From FY 2020 on, it is anticipated thatissues to be addressed will be identified based on results obtained from the demonstration
plant and a commercial plant will be reviewed that reflects the acquired knowledge in an effort
to advance the launch of a commercial project.
Chart 12: Roadmap for Supply of Next-Generation Aviation Fuel Using Woody Biomass as the Raw Material
FiscalYear

Challenges

Opporturnities< Formulation of business plan (1) >● Configure business model from raw material collection to fuel production● Develop catalyst for next-generation aviation fuel production, and review system
optimization

2015< Formulation of business plan (2) >■ Establishing an economically competitive collection system for woody
biomass■ Improving technology, including raising the quality of the gas in thegasification process from raw material■ Forming the enterprise comprising the supply chain from raw material
collection to fuel production2016 ● Launch demonstration project● Formulate business plan for demonstration plant< Design, construction and trial operation of demonstration plant for production of2017 next-generation aviation fuel(1) >● Design and construct demonstration plant■ Appropriately managing the project2018 next-generation aviation fuel(2) >● Construct demonstration plant■ Appropriately managing the project< Design, construction and trial operation of demonstration plant for production of< Design, construction and trial operation of demonstration plant for production of2019 next-generation aviation fuel(3) >● Construct and conduct trial operation of demonstration plant< Production of next-generation aviation fuel >2020 ● Operate demonstration plant and produce next-generation aviation fuel● Analyze results of demonstration plant operation< Increase in production scale >■ Establishing operational and maintenance structure of the plant
Identifying and verifying issues to be addressed concerning thecommercial plant based on the results of the demonstration plant■ Establishing an economically competitive raw material collection systemthat corresponds to the scale of the commercial plant■ Establishing fuel production technology that corresponds to the scale ofthe commercial plant■

2021
Formulate business plan for commercial project～ ●● Design, construct and conduct trial operation of commercial plant● Operate commercial plant, and produce next-generation aviation fuelNotes:■ Appropriately managing the project■ Improving demonstration plant to take into account results of trial
operation

This is a roadmap formulated from the standpoint of back casting on the assumption that production of
next-generation aviation fuel and supply of alternative aviation fuel will commence by FY 2020 on thebasis of the review results produced by the Third Subcommittee which take into account knowledge
possessed by Mitsubishi Hitachi Power System, Ltd.

(c) Position of this Path in the Context of the Overall Supply of Alternative Aviation FuelIn accordance with the Japanese government’s Basic Plan for the Promotion of Biomass
Utilization 45, 8 million tons (dry weight) of forest off-cuts were generated in 2010 and most ofthat went unused at the time. So, if the woody biomass, which is scattered about regions aswell as not being used, is able to be collected in large volume in an economically efficientmanner, then this path can be expected to increase the quantity of fuel produced in keepingwith future increases in demand.
(d) Characteristics of the BusinessThis is an operation to be undertaken in areas throughout Japan by using the untapped woody
biomass in these areas as the raw material. It contributes to the launch of regional biomass fuelbusinesses. Also, the raw material woody biomass absorbs carbon during the growth process,so it can be regarded as having zero emissions in terms of the carbon cycle and is sustainable
in that sense, contributing into the formation of a recycling-oriented society.
(e) Evaluation
This is an operation which uses for the raw material not only ligneous biomass, such as forest
45

Cabinet decision dated December 17, 2010 (see reference 8)- 42 -

cut-offs, wood waste and so on, but also herbaceous biomass including rice straw, wheat straw,
rice husks and other agricultural non-foods When consideration is given to the abundance ofraw material, its sustainability, formation of a recycling-oriented society, and its contribution
to launching fuel businesses in regional areas, business development is expected to be realized
from a long-term standpoint.
In preparation for business development, economically efficient raw material collection
system needs to be constructed through fuel production on a demonstration scale, and,
subsequently, the scale of the fuel production technology increased as well as the entire supply
chain optimized. It is also necessary to increase the reduction effect on CO2 emissions.
(3) Handling during Transport, Mixture as Well as at Airports and Aircraft
In Japan, the quality of conventional aviation fuels is controlled in accordance withinternational practices. More specifically, based on guidelines 46 established by JIG 47, aninternational organization which prepares and administers quality standards and handlingpolicies for conventional aviation fuels, industry standards have been established in Japan48,
and conventional aviation fuels are handled along the supply chain processes in accordancewith these standards. Also at airports in Japan, it is mainly JIS standard conventional aviation
fuel, which has been refined domestically, that is utilized at shared use storage facilities, andJIG has prepared AFQRJOS 49 regarding quality standards that conventional aviation fuels
should maintain at such shared use facilities. With regard to handling in Japan, the Uniform
Standard for Shared Use Storage Facilities, which conforms to AFQRJOS, has beenformulated by the Petroleum Association of Japan 50. In order to address usage by the many
parties concerned, standards for conventional aviation fuels meeting this standard have been
established so that they not only comply with ASTM D1655 but also with anotherinternational standard DEF STAN 91-91, and these operations are implemented in accordancewith these standards.
In the handling of next-generation aviation fuels during transport and at the airport after they
have been produced, standards for handling fuel along the supply chain described above as
well as unified standards for shared use storage facilities have also been enacted forconventional aviation fuels. So, in the future, it would be desirable to take into account theinternational practices specified by JIG to appropriately enact a policy for Japan after
consideration by the relevant parties.

46

The Joint Guidelines for Aviation Fuel Quality Control and Operating Procedures
JIG is an acronym of Joint Inspection Group, an organization headquartered in London whose members areinternational petroleum wholesalers and other companies.
48
Guidelines concerning standards for handling jet fuel. These guidelines have been prepared and revised to take
into account the joint guidelines prescribed by JIG. (See September 22, 2005 press release (*) by the Petroleum
Association of Japan.)(* )http://www.paj.gr.jp/paj_info/press/2005/09/22-000320.html (viewed May 9, 2015)49
AFQRJOS is an acronym of Aviation Fuel Quality Requirements for Jointly Operated Systems. In addition tosatisfying the quality standards required under ASTM D1655, AFQRJOS differs significantly from the ASTM
D1655 standard in that it requires traceability from the supplying facility until it is loaded on an aircraft.
50“Production Method and Specifications of Jet Fuel in Oil Refineries” (Journal of the Japan Institute of Energy,
January 2014) (Reference 19).
47

- 43 -

Also, mixing occurs in tank internal blend in which next-generation aviation fuel andconventional aviation fuel are mixed in a storage tank, line blind in which they are mixed
inside a pipeline at the time of shipping, and tanker truck blend in which they are mixed inside
a tanker truck during shipping. Such mixing needs to be reviewed by taking into account fuelquality management, cost and other factors.
With regard to handling in terms of aircraft which ultimately use the alternative aviation fuelwhich is a combination of the produced next-generation aviation fuel, the alternative aviationfuel certified under ASTM D7566 is an aviation fuel that has been certified based on tests anddata to verify that there are no issues in terms of the safe flight of the aircraft, just the same asfor conventional aviation fuels certified under D1655. So, there are no issues in terms of
airworthiness as long as the fuel has the properties prescribed in D7566.
3. Future Issues for Review(1) Consideration of the Business Promotion Framework① Issue AwarenessIn order to establish a supply chain for next-generation aviation fuel, it is necessary that there
be a functioning integrated structure which extends from raw material production andprocurement to product supply. With regard to the business promotion framework for an
integrated system, in consideration of the current situation in which there is no such enterpriseadministering the entire system, the enterprises responsible for each process will be called
upon to collaborate to construct the overall framework. As to what sort of business promotion
framework will be selected is closely related to the issue of how to balance securing efficiencyof the entire system and ensuring the sustainable management of enterprises responsible forthe system. For operational implementation, a business promotion framework will be selectedenabling the construction of an optimal business framework that ensures the interests of eachenterprise in line with a well-defined business model.
②Business Promotion Framework and Financing
A business promotion framework will be agreed upon among the enterprises deciding toparticipate in the business, whose development will be based upon, among other things, abusiness plan (① particular circumstances, ② superiority of the principal technology, ③
background besides technology, which includes business related trends, environmental andsocial nature as concerns industry, government and other institutions, ④future outlook andpossibilities and issues to be addressed, ⑤ specific description of the operation, ⑥scheduling, ⑦ revenue forecasts and financing plans, and ⑧ business promotion framework(including personnel plans), and that structure will be an important factor affecting financing.
③Consideration of Individual Business Promotion Structures
There are legal forms such as specific purpose companies (SPC) as well as joint ventures (JV)
which do not have any legal personality. In contrast to the former where the company, whichis the entity promoting the business, has greater independence than the individual participating- 44 -

companies, the latter tends to have stronger individual intent expressed by the participatingcompanies, which is ultimately reflected in operation of the business.
Moreover, in the case of corporate management, there are stock companies, limited liability
companies (LLC) or limited liability partnerships (LLP), and research partnerships. The
framework to be selected differs depending on what will be done with regard to investors,
asset holders and profit distribution.
(2) Consideration of Costs① Expenses Necessary for the Business and Provisional Calculation of Estimated Profit
It is unavoidable that the price of alternative aviation fuel calculated based on the necessary
business costs will significantly exceed the price of conventional aviation fuel in recent years(approximately 100 JPY/L). With the current situation the way it is, it does not follow that thebusiness will be economically competitive for some time on account of this price difference.
In particular, the rapid fall in the price of crude oil since the summer of 2014 has also halved
the price of conventional aviation fuel (Chart 13). Given the fuel price at the current point intime (as of April 2015), it is extremely difficult to produce alternative aviation fuel.
Chart 13: Change in Price of Conventional Aviation Fuel (April 2008~April 2015)(Source: IATA website (viewed on April 30, 2015))② Options for Covering the Difference between Income and Expenditures
The significance of introducing next-generation aviation fuels is that it provides for a stablesupply of aviation fuel and by extension sustainable growth in the aviation sector by ensuring
energy security and promoting measures to counter global warming. Therefore, in order toestablish a supply chain for next-generation aviation fuels, it is important that consideration
proceed from the standpoint of having the fuel producers, air carriers and other businesses
comprising the supply chain, the growing and expanding users of aviation services, and,moreover, the public at large which benefits from ensured energy security and measures tocounter global warming all bear the cost in keeping with the extent of the benefit received.
Based on this point, means for offsetting the aforementioned difference in prices include- 45 -

reducing costs through improvements at each stage of the supply chain, system optimization,technological innovation, user charges, area charges, and public support, discussion about
which is anticipated in the future.
Requests have been received from businesses, which will assume responsibility for productionof next-generation aviation fuels, for subsidies and specially recognized depreciation of capital
investment in order to alleviate the burden on the business during the initial stage when suchburden arising from investment in production equipment has a significant effect, and from air
carriers requesting a reduction in aircraft fuel taxes as well as petroleum and coal taxes whenusing next-generation aviation fuels. In any case, when designing the specifics of an efficientbusiness system, it is hoped that serious discussion will proceed on the appropriate allocationof cost burdens among a broad range of interested parties, while continuing to take into
consideration the profits gained from business implementation, the importance of establishinga supply chain for next-generation aviation fuels, and the fiscal situation in which Japan finds
itself as well as other factors.
(3) Issues to be Addressed in Business Implementation① Toward Establishment of a Supply Chain for Next-Generation Aviation Fuels
With regard to next-generation aviation fuels, against a backdrop of such necessity as related
to global warming countermeasures and energy security as well as future general needs
anticipated based on such necessity, there are businesses interested in such a supply chain, andthe INAF is also comprised of such businesses and other organizations. On the other hand, inorder to actually realize this business development, planning of the production scale and pricefor a stable supply is able to be done once a specific demand can be estimated.
In other words, there is a gap between the bird’s-eye view of a supply chain along with theroadmaps for individual technology paths compiled by the INAF and the implementation of an
operation which will realize these ideas, and it is necessary for interested parties in industry,
government and academia in Japan to collaborate to create the market described above, and topromote the general enhancement of the entire supply chain including those portions whichpurchase and use fuel by refining technological and development systems throughimplementation of demonstration projects, by making upgrading processes more advanced tobe compatible with different raw materials, and moreover by promoting sales and purchases.
In addition, many of the processes for producing next-generation aviation fuels use hydrogen.
As it is forecast that fuel-cell electric vehicles, which use hydrogen as the fuel, will become
more widespread in the future, it is necessary to secure hydrogen needed for the production of
next-generation aviation fuels while at the same time giving consideration to trends in theautomobile and other sectors, because the quantity of hydrogen produced is also limited.
②Overseas Partners
The INAF proceeded to consider issues in Japan while taking into account global trends
including those in the United States, about which information was provided by the UnitedStates Federal Aviation Administration, Department of Energy, LanzaTech, The Boeing- 46 -

Company, IATA and other organizations. Furthermore, the ICAO and other countries are
moving forward with efforts promoting the introduction of next-generation aviation fuels. To
establish a supply chain for next-generation aviation fuels in Japan without falling behindadvanced being made around the world, partnerships with such relevant organizations in othercountries are useful. Also, because the current situation is one in which ASTM standards, thede facto international standard for next-generation aviation fuels, are being enacted andamended by interested parties in other countries, it is clearly evident that overseas partnerships
are essential for promoting the production of next-generation aviation fuels and the use ofalternative aviation fuels.
(4) Direction for Resolving Issues
The price of crude oil fell by more than 50% between the summer of 2014 and January 2015,
breaking the 50 USD per barrel mark, and the price of conventional aviation fuel has similarly
gone down. Nevertheless, the current decline in the price of conventional aviation fuel does
not in any way decrease the necessity for developing next-generation aviation fuel. Moreover,the fuel development operations have a long lead time until stable supply can be achieved, and
it is not uncommon for periods of 10 years or more to be required. Therefore, the broad rangeof parties interested in next-generation aviation fuels needs to be aware that development of
this business in accordance with long-term forecasts is the pressing issue, and to undertake ademonstration project at an early stage irrespective of recent supply and demand levels.
In addition, the business of producing and supplying aviation fuel is long-term. Fuel prices
fluctuate significantly. So, in order to sustainably promote this business, it is necessary tofacilitate continuing technological development and secure a margin of investment. As thedevelopment of next-generation aviation fuels continues to move from the demonstration stage
to the commercial stage around the world, interested parties need to collaborate to prevail in
the international competition.
In 2020, when the Tokyo Olympics and Paralympics are scheduled to be held, it is not difficult
to imagine that much more of the world's attention will be focused on Japan than it is now.
The MRJ, which is currently under development as Japan's first domestically manufactured
passenger aircraft in 50 years, is scheduled to be flying across the skies of Japan and the worldin 2020. Commencing and promoting the production of next-generation aviation fuels and the
supply of alternative aviation fuels in Japan is a golden opportunity for the nation, which
advocates a national commitment to tourism, the environment and technology, to establish a
new presence, and it is desirable that the promotion of this business be accelerated now.

- 47 -

References(1) ICAO: Resolution A37-19: Consolidated statement of continuing ICAO policies and practices
related to environmental protection - Climate change, 8 October 2010.
http://www.icao.int/environmental-protection/37thAssembly/A37_Res19_en.pdf(2) ICAO: Resolution A38-18: Consolidated statement of continuing ICAO policies and practices
related to environmental protection — Climate change, 4 October 2013.
http://www.icao.int/Meetings/a38/Documents/Resolutions/a38_res_prov_en.pdf, PP90-101(3) Boeing: Current Market Outlook 2014-2033, July 2014.
http://www.boeing.com/assets/pdf/commercial/cmo/pdf/Boeing_Current_Market_Outlook_2014.pdf(4) IEA: CO2 Emissions From Fuel Combustion Highlights 2014.
https://www.iea.org/publications/freepublications/publication/CO2EmissionsFromFuelCombustionHighlights2014.pdf(5) IPCC: Climate Change 2014 Synthesis Report, 18 March 2015.
http://www.ipcc.ch/pdf/assessment-report/ar5/syr/SYR_AR5_FINAL_full.pdf(6) Cabinet Decision: Annual Report on the Environment, the Sound Material-Cycle Society and the
Biodiversity in Japan 2014; June 6, 2014.
http://www.env.go.jp/policy/hakusyo/h26/pdf.html(7) Cabinet Decision: Basic Energy Plan; April 11, 2014.
http://www.meti.go.jp/press/2014/04/20140411001/20140411001.html(8) Cabinet Decision: Basic Plan on Promotion of Biomass Utilization; December 17, 2010.
http://www.maff.go.jp/j/press/kanbo/bio/101217.html(9) Council on Promotion of Biomass Utilization: Biomass Business Development Strategy;
September 6, 2012.
http://www.maff.go.jp/j/press/shokusan/bioi/pdf/120906-02.pdf(10) Commercial Aviation Alternative Fuels Initiative (CAAFI): ASTM D4054 Users’ Guide,
December 2013. http://www.caafi.org/information/pdf/D4054_Users_Guide_V6_2.pdf(11) ICAO: 2013 Environmental Report, October 2013. http://cfapp.icao.int/Environmental-Report-2013/(12) IATA: 2014 Report on Alternative Fuels 9th Edition, December 2014.
http://www.iata.org/publications/Documents/2014-report-alternative-fuels.pdf(13) FAA: R&D Control Study: Plan for Future Jet Fuel Distribution Quality Control and Descriptionof Fuel Properties Catalog, November 2014.
https://www.faa.gov/about/office_org/headquarters_offices/apl/research/alternative_fuels/media/Metron_Fuel_Quality_Final.pdf(14) Midwest Aviation Sustainable Biofuels Initiative (MASBI): Fueling a Sustainable Future for
Aviation, June 2013. http://www.masbi.org/content/assets/MASBI_Report.pdf(15) Research Commissioned by the Ministry of Economy, Trade and Industry (Author: Mitsubishi
Research Institute, Inc.): Research on Structure of Petroleum Industry (Trends in Other Countries
Concerning Biomass Fuels and Operation of Systems Concerning Sustainability Standards for
Biomass Fuels); March 2014. http://www.meti.go.jp/meti_lib/report/2014fy/000862.pdf(16) New Energy and Industrial Technology Development Organization: NEDO Renewable Energy
Technology White Paper (Second Edition), February 2014.
http://www.nedo.go.jp/library/ne_hakusyo_index.html(17) Council on Competitiveness-Nippon (COCN): Development of Fuels Utilizing Microalgae; March
6, 2012. http://cocn.jp/common/pdf/thema38-L.pdf(18) JX Nippon Oil & Energy Corporation: Petroleum Handbook. http://www.noe.jx-group.co.jp/binran/(19) HOSHI, Ayano, Keiji FUJIWARA, Masakazu TANABE. “The Production Method and Specificationsof Jet Fuel in Oil Refineries,” Journal of the Japan Institute of Energy, Volume 93 No. 1 (January 2014)- 48 -

Principal Acronyms
AFQRJOS

Aviation Fuel Quality Requirements for Jointly Operated Systems

AFTF

Alternative Fuels Task Force

ATJ

Alcohol to Jet

BTL

Biomass to Liquid

CNG

Carbon Neutral Growth

COP

Conference of the Parties

DEF STAN UK Defense Standards
DOE

Department of Energy, USA

FAA

Federal Aviation Administration, USA

FT SPK

Fisher-Tropsch Hydroprocessed Synthesized Paraffinic Kerosine

HEFA SPK Synthesized Paraffinic Kerosine from Hydroprocessed Esters and Fatty Acids
IATA

International Air Transport Association

ICAO

International Civil Aviation Organization

IEA

International Energy Association

INAF

Initiatives for Next Generation Aviation Fuels

IPCC

Intergovernmental Panel on Climate Change

JIG

Joint Inspection GroupJV

Joint Venture

LLC

Limited Liability Company

LLP

Limited Liability Partnership

MRJ

Mitsubishi Regional Jet

NEDO

New Energy and Industrial Technology Development Organization

OEM

Original Equipment Manufacturer

SIP

Synthesized Iso-Paraffins from Hydroprocessed Fermented Sugars

SPC

Specific Purpose Company

SPK

Synthesized Paraffinic Kerosine- 49 -