Tokyo, Japan – September 8, 2025 — In a milestone move for maritime decarbonization in Asia, Cosmo Oil Marketing Co., Ltd., a key group company under Cosmo Energy Holdings Co., Ltd., has announced its participation in a first-of-its-kind ship-to-ship (STS) biofuel bunkering initiative at the Port of Tokyo.
This innovative project—selected under the Tokyo Metropolitan Government’s “Decarbonization Fuel Utilization Business Commercialization Promotion Support Project”—marks Tokyo’s first foray into direct STS biofuel supply to vessels and stands as a cornerstone of the city’s “Zero Emission Tokyo” vision.
Fuel supply operations are scheduled to begin this autumn.
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Pioneering Maritime Decarbonization
The maritime sector, long considered a hard-to-abate industry in terms of carbon emissions, is now undergoing a crucial shift toward low-carbon fuels. The Port of Tokyo—Japan’s central maritime hub—will now host a dedicated STS biofuel bunkering service, designed to provide cleaner fuel options for both domestic and international vessels operating in and out of Tokyo Bay.
The initiative centers around a newly developed biofuel blend known as B24, which contains 24% FAME (Fatty Acid Methyl Ester)—a biodiesel derived from renewable sources such as used cooking oil—and 76% conventional fuel oil. This blend reduces life-cycle CO₂ emissions and can be used in existing marine engines without modification, making it a practical and impactful step forward.
Project Structure and Industry Collaboration
The project is led by NX Shoji Co., Ltd., which serves as the representative business operator and primary coordinator of operations and supply logistics. The consortium includes a carefully selected group of industry leaders, each playing a vital role in the end-to-end supply chain:
- Cosmo Oil Marketing Co., Ltd.
Supplies the fuel oil, used as the petroleum-based base for blending with biodiesel, and manages final fuel distribution. - NX Shoji Co., Ltd.
Oversees the blending of FAME and fuel oil to produce the B24 marine biofuel. Also responsible for project coordination and reporting. - Izu Shichito Kaiun Co., Ltd., NX Kaiun Co., Ltd., Nippon Shiokaiso Co., Ltd., Fujii Sekiyu Co., Ltd., and Maru-A Ferry Co., Ltd.
These maritime and logistics firms support vessel operations, fuel transport, and system integration across Tokyo Port’s bunkering infrastructure.
The consortium will also undertake public education and outreach activities to support long-term market adoption of marine biofuels.
Fuel Delivery Method: Ship-to-Ship Bunkering
The fuel will be supplied via ship-to-ship (STS) transfer, a method that allows direct fueling from a bunker vessel to the receiving ship at berth or anchorage. STS is well suited for high-traffic ports like Tokyo and reduces turnaround time compared to land-based fueling methods.
By using STS delivery, the project demonstrates the feasibility of biofuel integration into existing bunkering operations, minimizing operational disruption and capital cost while maximizing environmental benefits.
Backed by Government Subsidy and Long-Term Strategy
As part of the Tokyo Metropolitan Government’s latest “Beyond Carbon-Half” initiative, this project is one of three selected for subsidy support to advance the commercialization of biofuels across untapped sectors.
The ship-to-ship bunkering project joins:
- A Sustainable Aviation Fuel (SAF) pilot led by IHI Corporation, and
- A renewable diesel program for rail maintenance vehicles spearheaded by Itochu Enex Co., Ltd.
Each project targets decarbonization in traditionally carbon-intensive sectors: aviation, rail, and maritime.
Under the support framework:
- Each selected project is eligible for up to 80 million yen in subsidies, covering up to 80% of qualified costs.
- Funding is available through March 2027, offering ample runway for technology validation, operational scaling, and public-private collaboration.
This aligns with Strategy No. 20 of Tokyo’s “2050 Tokyo Strategy”, which expands the scope of zero-emission mobility beyond passenger vehicles into industrial and commercial transportation domains.
Cosmo Oil’s Commitment to Low-Carbon Marine Solutions
Cosmo Oil Marketing emphasized that its participation in the biofuel bunkering initiative is aligned with the company’s long-term sustainability strategy. The firm views marine biofuels not only as a key to meeting emissions targets, but also as an innovation pathway to invigorate related industries.
“This project reinforces our commitment to reducing the carbon footprint of maritime logistics while maintaining operational efficiency,” shared Cosmo Oil “We aim to support not only our shipping partners but also the entire maritime industry in navigating the transition to a low-carbon future.”
Setting a National and Regional Precedent
As Japan intensifies efforts to meet its 2030 and 2050 carbon neutrality targets, the launch of Tokyo’s first STS biofuel supply chain represents a strategic breakthrough. It proves that decarbonization in complex, high-volume maritime environments is both technically viable and economically supported.
The model established here—combining industry expertise, logistical readiness, and public support—could be replicated across other major Japanese ports such as Yokohama, Kobe, and Osaka, and potentially influence regional strategies across East Asia.
With fuel delivery set to begin this autumn, Cosmo Oil Marketing and its partners are not just supplying fuel—they are powering a shift. A shift toward cleaner seas, resilient supply chains, and a new chapter in sustainable shipping.
Tokyo’s Port is no longer just a gateway for global trade — it is now a flagship hub for maritime decarbonization in Asia.
About Cosmo Oil Marketing Co., Ltd.
Cosmo Oil Marketing Co., Ltd. is a core operating company within the Cosmo Energy Group, one of Japan’s leading integrated energy companies. Specializing in the marketing and distribution of petroleum products, lubricants, and renewable fuels, Cosmo Oil Marketing plays a vital role in delivering reliable, sustainable energy solutions across the country.
The company operates a nationwide network of service stations and commercial fuel supply operations, serving diverse sectors including transportation, marine, industrial, and aviation. In line with the Cosmo Energy Group’s long-term vision for a decarbonized society, Cosmo Oil Marketing is actively engaged in advancing the use of low-carbon and renewable energy sources — including the promotion of biofuels and sustainable fuel infrastructure.
Through innovation, strategic partnerships, and environmental stewardship, Cosmo Oil Marketing is committed to supporting the energy transition and contributing to a more sustainable future for Japan and the broader Asia-Pacific region.
Source Cosmo Oil Marketing Co., Ltd