INPEX JAPAN, LTD., INPEX LOGISTICS, ITOCHU Corporation, and ITOCHU ENEX Co., Ltd. have announced the commencement of commercial production and supply of RD40, a renewable diesel blend, in late September 2024.

This collaboration, in partnership with Neste OYJ, the world’s largest renewable fuel manufacturer, aims to revolutionise the fuel landscape in Japan’s transportation sector.

The initiative focuses on supplying RD40, a fuel blend containing up to 40 per cent renewable diesel, to 18 tank trucks operated by INPEX LOGISTICS in the Hokuriku and Koshinetsu regions.

By leveraging INPEX Group’s extensive business network in these areas, the collaborating companies plan to establish a robust supply chain for fuel mixing and refuelling operations.

This latest venture builds upon previous successful initiatives in the renewable fuel sector. In May 2021, ITOCHU pioneered the commercial use of 100 per cent renewable diesel for FamilyMart Co., Ltd.’s delivery trucks, marking a first in Japan’s alternative fuel usage.

Subsequently, ITOCHU and ITOCHU ENEX expanded their efforts by developing a supply chain for 100 per cent renewable diesel products, including the construction of fuelling stations.

The adoption of RD40 addresses key regulatory challenges in Japan.

While regulations limit the use of 100 per cent renewable diesel to special vehicles and prohibit its concurrent use with conventional diesel, RD40 is exempt from these restrictions.

This flexibility allows for the combined use of RD40 with regular diesel fuel, enhancing convenience and potentially accelerating the widespread adoption of renewable diesel in the country.

Looking ahead, the four companies are committed to expanding the use of RD40 in various industries, including land transportation, construction, airport operations, ports, and railways, starting from the next fiscal year.

This expansion aligns with INPEX Group’s long-term strategy to achieve net-zero carbon emissions by 2050.

Meanwhile, ITOCHU ENEX is reinforcing its commitment to providing eco-friendly energy services, emphasising renewable energy utilisation and energy-saving solutions for customers.

This collaborative effort marks a significant step towards Japan’s goal of carbon neutrality, demonstrating the private sector’s commitment to sustainable and innovative energy solutions in the transportation industry.