Domestic Supply Picture
Japanese producers delivered roughly twelve thousand kilolitres of fatty acid methyl ester in the latest reported year. Limited availability of used cooking oil feedstock and rising competition from sustainable aviation fuel projects restrained additional growth. As a result, biodiesel presently covers only a small fraction of the marine fuel volume required to meet the Ministry of Land Infrastructure Transport and Tourism decarbonisation roadmap.
Import Strategy Gains Momentum
Stakeholders are turning to international suppliers to bridge the gap. Recent customs data show imports grew more than sixfold last year, with product sourced from markets that enjoy steady restaurant oil collection schemes. With domestic gasoil prices sitting well below local biodiesel production costs, imported blends can arrive at a competitive headline price once tax alignment is achieved. Industry groups are therefore engaging policy makers to extend the same levies and rebates that apply to conventional marine fuel.
Non Obvious Insight: SAF Growth Helps Shipping Too
At first glance the rapid expansion of sustainable aviation fuel might appear to compete with marine biodiesel for feedstock. In practice, parallel demand is encouraging aggregated collection systems that increase the overall pool of waste oils. Airlines are effectively underwriting the logistics infrastructure that coastal shipping will soon leverage. By coordinating procurement calendars with refinery partners that swing between SAF and marine biodiesel batches, vessel operators can secure consistent volumes without owning complex processing facilities.
Conclusion
Japan is demonstrating that pragmatic collaboration across sectors and borders can deliver meaningful carbon reductions even when domestic resources are scarce. By combining smart import contracts with supportive fiscal policy the nation is charting a realistic pathway toward cleaner coastal transportation.