Collaboration in the business of renewable fuel in the land transportation field

Utilizing Renewable Diesel in tank trucks for the First Time in Japan

June 7, 2022

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter "ITOCHU"), ITOCHU ENEX CO., LTD. (headquartered in Chiyoda-ku, Tokyo; Kenji Okada, President & CEO; hereinafter "ITOCHU ENEX"), INPEX CORPORATION (headquartered in Minato-ku, Tokyo; Takayuki Ueda, President & CEO; hereinafter "INPEX") and INPEX LOGISTICS(JAPAN)CO., LTD. (headquartered in Joetsu City, Niigata Prefecture; Shujiro Kon, President & CEO; hereinafter "INPEX Logistics"), have started collaboration on the use of Renewable Diesel (hereinafter "RD"), a fuel derived from renewable resources, in tank trucks for the first time in Japan.

INPEX Logistics will use RD procured by ITOCHU from Neste OYJ (headquartered in Finland; Matti Lehmus, President and CEO; hereinafter "Neste"), the world's leading producer of renewable fuel, and supplied by ITOCHU ENEX, to fuel 18 tank trucks transporting domestic crude oil and petroleum products in the Hokuriku and Koshinetsu regions.* This is the first case for RD being used in the region as well as being used for tank trucks in Japan.

Prior to this collaboration, ITOCHU concluded a purchase agreement with Neste for the stable supply of RD to Japan, and ITOCHU ENEX has established a supply chain for the transportation and refueling of RD in Japan. This time, collaboration was realized by combination of the ITOCHU Group's supply chain and the INPEX Group's sales network in the Hokuriku and Koshinetsu regions.

The four companies will enhance the decarbonization of the land transportation sector by continuously supplying and utilizing RD in INPEX Logistic's tank trucks. Utilizing the INPEX Group's network in the Hokuriku and Koshinetsu regions, the four companies will collaborate in the development of the RD business and jointly contribute to the realization of a circular economy and a decarbonized society.

  • *Neste's RD is made from 100% renewable raw materials and reduces up to 90% of GHG emissions compared with the petroleum-based diesel on a life-cycle assessment basis. RD is fully compatible with all diesel engines and is an excellent solution for cargo trucks and buses. It is a "drop-in" fuel that does not require the modification of existing vehicles/fueling-related facilities to start its use. RD has already been commonly used mainly in Europe and in the US. As a future generation renewable fuel that can minimize the introduction cost related to decarbonization measures, and can greatly contribute to the reduction of GHG emissions as well, the use of RD is expected to further expand its use in the land transportation field in the future.

Tank trucks using Renewable Diesel