Japanese trading house Mitsubishi Corp. and oil refiner Eneos Corp. are investing ¥15 billion ($102 million) in a Hawaii-based venture to produce sustainable aviation fuel, marking their latest bet on the rapidly expanding biofuels market.
The partnership with U.S. refiner Par Pacific Holdings will create Hawaii Renewables, with the Japanese companies acquiring a combined 36.5% stake for $100 million through their joint entity Alohi Renewable Energy. Par Pacific retains majority control and operational leadership of the Kapolei facility conversion.
The retrofitted refinery is expected to produce 61 million gallons annually of renewable diesel, sustainable aviation fuel, and other green products once operational by late 2025. The facility is designed to allocate up to 60% of output toward sustainable aviation fuel, targeting Hawaii’s substantial air travel market.
The investment comes as the global sustainable aviation fuel market is projected to surge from $2.06 billion in 2025 to $25.62 billion by 2030, driven by airline commitments to slash carbon emissions. However, current U.S. sustainable aviation fuel production remains minimal, representing less than 2% of total jet fuel consumption.
Hawaii’s annual jet fuel demand sits between 600 and 700 million gallons, making the state’s aviation sector a strategic target for renewable fuel producers. The venture’s production flexibility between different fuel types provides a hedge against volatile biofuel pricing.
Mitsubishi brings global feedstock procurement capabilities and access to its Long Beach terminal, while Eneos contributes refining expertise and Asian market access, according to the companies.
