Idemitsu Kosan Co.,Ltd has signed a Memorandum of Understanding (MOU) with Zen-Noh Grain Corporation, a subsidiary of the National Federation of Agricultural Cooperative Associations, regarding "strategic cooperation in establishing an SAF supply chain." The purpose of this agreement is to secure a variety of vegetable oil feedstock for HEFA*1 technology, a sustainable aviation fuel (SAF) production technology, to develop SAF business in North America and to consider supplying vegetable oil feedstock to Japan. To meet growing demand for SAF, it is necessary to establish production technology and flexible feedstock procurement. The Company has set a goal of establishing an annual supply system of 500,000 kl of SAF by 2030, and is conducting verification production by introducing ATJ*2 technology at its Chiba Complex using the GI Fund, as well as studying SAF production using HEFA technology at its Tokuyama Complex.

While vegetable oils are used as feedstocks for HEFA technology, securing HEFA feedstock oil to meet the growing demand for SAF worldwide presents a challenge. To secure oil as a feedstock, the Company will collaborate with Zen-Noh Grain, which operates on a scale comparable to grain majors in the United States, to verify the use of vegetable oil, mainly soybean oil, and vegetable oil derived from inedible oilseeds grown as cover crops (green manure) in the back-crop. Development of SAF business opportunities in the U.S. and Japan by crushing soybeans handled by Zen- Noh Grain as the HEFA feedstock, and supply of the feedstock for the Company's SAF production.

Study, verification and development for commercialization of oilseed feedstock (assuming camelina, carinata, and winter canola*3 as cover crop) in North America. Research on the use of oil extraction residue from pongamia*4 used as feedstock as animal feed in Japan.