Japan looks to import marine biodiesel to make up for domestic shortfall: BDF

Japan is looking to import marine biodiesel, as domestic biofuel production remains limited due to a shortage of used cooking oil, according to Yuko Togawa from Japan's Bio Diesel Fuel association at a marine biodiesel conference in Kawasaki, Tokyo, Feb. 12.

Domestic production of fatty acid methyl ester reached 11,704 kiloliters in 2024, according to the latest figures available from BDF, which Togawa said is far short of what is needed to achieve the government's goal.

The Ministry of Land, Infrastructure, Transport and Tourism anticipates about 350,000 kiloliters of biodiesel required to achieve a plan to cut CO2 emissions from domestic vessels by 650,000 metric tons in 2040, according to documents presented at an MLIT council meeting in December.

BDF's research shows that used cooking oil from households, a biodiesel feedstock, totaled 16,000-38,000 mt in 2024, lower than anticipated, according to Togawa.

The start of domestic production of sustainable aviation fuel triggered a rise in biodiesel imports as SAF production made domestic biofuel material, including UCO, less available for biodiesel, Togawa said.

Japan's biodiesel imports rose over sevenfold year over year, by 629%, in 2025 to 1,283 kiloliters, although biodiesel exports declined 57.3% year over year to 3,498 kiloliters, according to the Ministry of Finance, which Togawa said was probably due to a fall in domestic biodiesel production.

Cosmo Oil, the third largest refiner, began supplying domestic SAF to commercial passenger flights at several airports in the second quarter of 2025, Platts, part of S&P Global Energy, reported previously. In December 2024, the refiner launched Japan's first large-scale SAF production plant in Sakai with an annual production capacity of about 30,000 kl.

Another reason for an expected increase in Japan's biodiesel imports is rising domestic production costs, according to Togawa. BDF data showed that biodiesel production costs in 2024 were estimated at Yen 222/liter, a 113% increase from 2006.

Togawa said that biofuel is at a competitive disadvantage compared with fuel oil, as domestic gasoil spot prices, including tax, were Yen 143.8/liter on Jan. 26, well below biodiesel production costs, according to the Ministry of Economy, Trade and Industry's weekly retail data.

BDF is reaching out to the government to have biodiesel treated the same as gasoil for tax purposes by changing some regulations, Togawa added. BDF is a member of METI's council meeting on biofuel research and promotion.

Platts assessed the average prices of gasoline, kerosene and gasoil at Yen 87,850/kl, Yen 86,600/kl and Yen 69,300/kl, respectively, across the Chiba, Kanagawa, Chukyo and Hanshin regions Feb. 13.