en.Wedoany.com Reported - On April 6th, the Tokyo Metropolitan Government announced an expansion of its subsidy program for domestic sustainable aviation fuel (SAF) producers, aiming to increase the supply and refueling opportunities for domestically produced fuel at Tokyo's Haneda Airport. According to the new regulations, the government will provide eligible producers with a financial subsidy of up to 100 yen (approximately $0.63) per liter, with a total fund set at 450 million yen, equivalent to supporting a production capacity of 4.5 million liters.
The subsidy aims to bridge the price gap between domestically produced and international sustainable aviation fuel. A Tokyo government spokesperson stated that international selling prices will serve as the benchmark for measuring the price difference, but did not disclose the names of specific international suppliers. The new policy sets clear technical thresholds for domestic fuel: the feedstock must be waste cooking oil, sugarcane, municipal waste, or waste plastic generated within Japan; the product must comply with ASTM international standards and obtain third-party certifications such as CORSIA; and it must achieve a reduction of over 50% in greenhouse gas emissions throughout its lifecycle compared to conventional aviation kerosene.
This policy is a continuation and upgrade of the subsidy plan from May 2025. Previously, the Tokyo Metropolitan Government provided a 250 million yen subsidy to Cosmo Oil Marketing to promote domestic industry development. This new subsidy represents an 80% increase in the total amount, expanding coverage from specific companies to all qualified domestic producers.
The application portal opened on April 6th and will close on April 20th. The government plans to complete the review process and announce the results by mid-May, with the subsidy implementation period lasting until March 31, 2027. The Tokyo Metropolitan Government emphasized that this measure directly serves the decarbonization goals of Haneda Airport, using financial incentives to promote the development of domestic supply chains.
According to industry estimates, the 450 million yen subsidy can cover the price gap cost for approximately 4.5 million liters of fuel. If operating at full capacity, this will significantly increase the market share of Japanese-made sustainable aviation fuel at Haneda Airport, helping the aviation industry achieve its 2030 emission reduction targets. Currently, producers are accelerating their efforts to obtain third-party certifications in order to submit applications before the deadline.
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