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Rengo and Sumitomo Forestry Plan Construction-Waste Bioethanol for SAF by 2027

Rengo and Sumitomo Forestry plan to make bioethanol from construction wood waste for later conversion into SAF. Their 2027 target is 20,000 kL of ethanol a year, not finished jet fuel.
From TheFinanceBase Team3 min to read
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Rengo, a Japanese packaging and paper company, and Sumitomo Forestry announced a plan to turn wood waste from housing construction into bioethanol for conversion into sustainable aviation fuel (SAF). The companies’ April 2025 target was 20,000 kiloliters of bioethanol a year by 2027—not 20,000 kiloliters of finished jet fuel. The announcement described a proposed project, not an operating plant.

What the companies announced

On April 23, 2025, Rengo and Sumitomo Forestry said they had signed a basic agreement to make wood-derived bioethanol from wood waste, including construction waste from Sumitomo Forestry housing sites. Their stated aim was to establish a joint venture by December 2025 and reach annual commercial production of 20,000 kiloliters of bioethanol by 2027. Those were plans and targets in the announcement, not confirmed milestones or achieved output. Sumitomo Forestry’s announcement sets out the project details.

How construction wood waste would become aviation fuel

  1. Collect the feedstock: Sumitomo Forestry said it would gather construction waste from its housing sites in Shizuoka Prefecture and nearby areas and supply it to the project.
  2. Make bioethanol: The proposed process uses technology developed by Biomaterial, a Rengo subsidiary. Taiko Paper Mfg., another Rengo subsidiary, was named as the planned production-site host at its head-office factory.
  3. Convert it downstream: The project’s first-stage product would be bioethanol. The companies said it would be sold to fuel suppliers, who would convert it into SAF for use as aviation fuel. The announcement does not describe Rengo’s proposed site as a finished-SAF plant. The project release describes the proposed chain.

What the 20,000-kiloliter target means

The 20,000-kiloliter figure is the announced annual commercial production target for bioethanol by 2027. It is not a stated volume of finished SAF. Bioethanol and finished aviation fuel are different stages of the process, so the figure should not be compared directly with SAF-output targets from projects that report finished fuel capacity.

Project status: announcement, not confirmed operation

The official project release describes a basic agreement, a proposed joint venture, a prospective production site and a 2027 target. The official materials identified for this project do not establish whether the joint venture was subsequently formed, whether construction began, or whether the target remains on schedule. Those steps should not be treated as completed facts.

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Why feedstock eligibility matters—and what it does not prove

On March 11, 2026, Japan’s Ministry of Land, Infrastructure, Transport and Tourism reported that the biogenic fraction of construction and demolition waste had been registered as an ICAO CORSIA SAF feedstock following a Japanese proposal. The ministry said diversifying feedstocks matters because used cooking oil alone cannot provide the SAF supply needed. The ministry’s announcement provides this policy context.

Registration of a feedstock category does not establish that every batch—or this project’s entire supply chain—has completed the relevant certification. Nor does the registration confirm that the proposed plant is operating. Those are separate questions from whether a type of material can qualify as a feedstock under the scheme.

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Do not confuse this plan with the Morisora Project

Another Japanese bioethanol initiative, the Morisora Project, involves Nippon Paper, Sumitomo Corporation and Green Earth Institute. It uses woody biomass, including wood-processing residues, and plans production at Nippon Paper’s Iwanuma mill. Its announced target is at least 1,000 kiloliters of bioethanol per year from 2027. It is a separate project, not a smaller output figure for the Rengo–Sumitomo Forestry plan.

Project Announced feedstock and site Announced figure What the figure measures
Rengo–Sumitomo Forestry Construction wood waste; planned site at Taiko Paper’s head-office factory 20,000 kL/year by 2027 Bioethanol commercial production target, announced in April 2025. Source
Morisora Project Woody biomass, including wood-processing residues; planned site at Nippon Paper’s Iwanuma mill At least 1,000 kL/year from 2027 Bioethanol target for the separate project, announced in February 2025. Source
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No project-specific emissions reduction is established

The project announcement does not provide a lifecycle greenhouse-gas reduction percentage for its construction-waste-to-ethanol pathway. For comparison, JGC reports an 84% reduction versus conventional jet fuel for SAF made from used cooking oil through its own process, and notes that reductions vary by feedstock and technology. That figure belongs to JGC’s pathway and should not be attributed to the Rengo–Sumitomo Forestry project. JGC’s SAF page describes its claim.

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  • SafetyPour Bottle Cap: Patent-pending SafetyPour technology includes a CPSC-compliant flame-mitigation device for controlled transfer into a cool fuel reservoir. Designed to help reduce splashing, overpouring, and accidental flame exposure during handling.
  • Clean Burning Bio Ethanol Liquid Fuel: Smokeless, odorless, and ash-free burn with minimal soot or residue when used as directed. A practical ethanol fuel option for indoor and outdoor ethanol-powered burners.
  • 1 Liter Bottle, Clean and Convenient: Each 1 liter bottle provides multiple hours of burn time per fill. The compact format stores easily at home or on the patio, making it a practical refill solution for your bio ethanol fuel fireplace.
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