PRESS RELEASE
March 31, 2023

JGC and TOYO Sign Alliance Agreement
on Domestic SAF Plants
Yokohama and Narashino, Japan- JGC Holdings Corporation has announced thatdomestic EPC operating company JGC Japan Corporation and Toyo Engineering
Corporation(TOYO) have signed an alliance agreement on March 30, 2023, to pursue andexecute orders for front-end engineering design (FEED) and engineering, procurement andconstruction (EPC) services for domestic sustainable aviation fuel (SAF) plants.

In response to global calls for GHG reduction, in October 2022 the International Civil
Aviation Organization adopted a long-term goal of net-zero CO2 emissions from theinternational aviation sector by 2050. Meanwhile, in relatively recent updates adopted in
ICAO's CORSIA*1 program, CO2 emission reduction in this sector by 2035 is being soughtby mandating the use of SAF and purchases of emission credits for the portion ofemissions exceeding a baseline level (85% of 2019 emissions) as a short- to medium-termgoal.
In Japan, a target based on the government's Green Growth Strategy supporting
carbon neutrality by 2050 seeks to replace 10% of jet fuel used by domestic airlines withSAF by 2030. Domestic SAF demand is expected to grow significantly from approximately
300,000 kiloliters in 2025 to 1.71 million kiloliters*2 in 2030.
Currently, several companies – domestic oil refining companies and others – havetapped the government's Green Innovation Fund and taken other steps to make steadyprogress in preparing to build domestic SAF plants using a variety of feedstocks including
bioethanol. Many such plant construction plans are likely to come to fruition from 2024 to2027, in consideration of the Green Innovation Fund period, with large-scale investment onan overall scale of several hundred billion yen expected.
In SAF production, the JGC Group has wide-ranging expertise in production andsupply planning as an operator, while the TOYO Group possesses knowledge andtechnology for production of SAF derived from synthesis gas using raw materials such as
ethanol and wood biomass. Both companies also have extensive construction experience
for large oil refineries and chemical/petrochemical plants in Japan and overseas.
The alliance was founded on the expectation of even more compelling proposals,
greater competitiveness, and superior overall plant construction that combines eachcompany's strengths and enables collaboration on SAF plant construction plan from FEED
to EPC services.
Following an alliance agreement on fuel ammonia plants concluded in April 2022, thepresent agreement on domestic SAF will align the companies' sales activities and project
execution in SAF plant design and construction. Through this alliance, the JGC Group andthe TOYO Group will contribute in implementing client investment plans and working toward
decarbonization in Japan.

*1 CORSIA: Carbon Offsetting and Reduction Scheme for International Aviation*2 Source: meeting materials from the second meeting of an MLIT public-private council promoting theintroduction of SAF (November 2022).

Signing Ceremony
Left: JGC Japan Corporation President, Shoji Yamada
Right: TOYO President & CEO, Haruo NagamatsuContacts
Akihiro Yamagami

Corporate Communication GroupJGC HOLDINGS CORPORATION
E-mail: yamagami.akihiro@jgc.com

Yoshifumi Shiraishi / Takuo Yamada
Corporate Communications Department
Toyo Engineering Corporation
E-mail：pr@toyo-eng.com