Tokyo to expand subsidy program for domestic SAF producers

The Tokyo Metropolitan Government will expand its subsidy program for regional producers of domestic sustainable aviation fuel to increase the supply and refueling opportunities of domestic SAF at Haneda Airport in Tokyo, the Tokyo government said on its website on April 6.

The program financially supports producers in Tokyo by up to Yen 100/liter ($0.63/l) for the price difference between domestic and international SAF, according to the website. The total amount of subsidies will reach up to Yen 450 million with 4.5 million liters.

"We will use a selling price of international SAF to measure the price difference from domestic SAF, though we can't say the name of the international producer," a Tokyo government spokesperson told Platts.

The website says domestic SAF is to be produced in Japan from feedstocks such as used cooking oil, sugar cane, municipal waste, or waste plastic in line with ASTM International standards. The domestic SAF should have a third-party certification, such as CORSIA, and reduce greenhouse gas emissions by more than 50% in comparison to jet fuel.

The Tokyo government will accept applications from producers till April 20, and provide subsidies till March 31, 2027, after reaching a final decision in mid-May, according to the website. The government announced in May 2025 that it would provide subsidies of Yen 250 million to Cosmo Oil Marketing, a group company of Japan's third-largest refiner Cosmo Oil, to promote domestic SAF.

Platts, part of S&P Global Energy, assessed SAF (HEFA-SPK) FOB Straits at $2410/mt on April 6, down $10, or 0.4%, from the previous assessment.