Eneos Holdings' Strategic Shift: LNG, Hydrogen, and SAF Focus in Japan
Key Ideas
  • Eneos Holdings in Japan to strategically pivot towards LNG, hydrogen, and SAF in a new business model to support low-carbon and decarbonization initiatives.
  • The company plans to invest in hydrogen production, transportation, and supply for industrial transport in Japan, aiming to establish a hydrogen supply chain.
  • McKinsey forecasts significant growth in Asia's SAF market, with potential for 30-40% of global biogenic SAF demand by 2050, creating opportunities for businesses in supply and production.
  • Collaboration between the EU and Japan on semiconductor research signals a renewed digital drive in technological advancements.
Eneos Holdings in Japan has announced a strategic shift towards focusing on liquefied natural gas (LNG), hydrogen, and sustainable aviation fuel (SAF) as part of a new three-pronged business strategy. This move is aimed at supporting low-carbon and decarbonization efforts. The company will prioritize investments in LNG, with a focus on hydrogen production, transportation, and supply for industrial transport operators in Japan to establish a hydrogen supply chain. Additionally, Eneos Holdings plans to channel resources into carbon capture and storage (CCS) initiatives for industry and power generation. A major sustainable aviation fuel project is also on the horizon, with an in-house manufacturing system at the Wakayama plant expected to be operational from 2028. The company's operating profit for fiscal year 2024 exceeded forecasts, reaching JY106.1bn. Furthermore, a partnership between Cosmo Oil Co and other stakeholders will facilitate the production of SAF using 27,000 litres of used cooking oil annually. Market analysis by McKinsey suggests a substantial growth potential for Asia's SAF market, with projections indicating a 30-40% share of global biogenic SAF demand by 2050. This presents opportunities for businesses to engage in supply and production activities. In parallel, the EU and Japan have disclosed plans for collaboration on semiconductor research, reflecting a shared commitment to technological advancements and digital innovation.
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