New Decarbonization Logistics Model Led by Shippers Launched

Euglena Co., Ltd. (Headquarters: Minato-ku, Tokyo; President and CEO: Mitsuru Izumo, hereinafter "Euglena"), in collaboration with Marubeni Logistics Corporation, Marubeni Energy Corporation, and Shinozaki Transport Co., Ltd., has launched a new decarbonization logistics model*1, with shipper companies also participating, commencing inter-depot transportation for shippers using the biofuel "Susteo" on July 1, 2026.

This initiative is characterized by the active participation of shipper companies, not just fuel suppliers and logistics companies, in reducing greenhouse gas emissions (Scope 3) originating from logistics. This is a new approach that promotes the decarbonization of logistics, which has often been left to the efforts of transportation providers, across the entire supply chain, including shipper companies.

Background

In recent years, the importance of reducing greenhouse gas emissions across the entire supply chain has been increasing. In particular, emissions generated by logistics are included in "Scope 3" and have become a significant challenge for companies in their decarbonization management.

On the other hand, the selection of fuels and efforts to reduce environmental impact in the logistics sector have primarily been borne by transportation providers, with limited mechanisms for shipper companies to actively participate.

Euglena, Marubeni Logistics, Marubeni Energy, and Shinozaki Transport have now established a logistics model that includes shipper companies and have begun initiatives towards decarbonizing logistics.

Initiative Overview

In this initiative, trucks will be used for transportation, replacing diesel with the next-generation biodiesel fuel "Susteo 51" supplied by Euglena. Susteo 51 uses 51% biofuel-derived HVO*2, contributing to a reduction in greenhouse gas emissions compared to conventional diesel fuel.

Under the overall design and operational management of the logistics scheme by Marubeni Logistics, Marubeni Energy will supply Susteo 51, procured from Euglena, to Shinozaki Transport. Shinozaki Transport will then use a dedicated vehicle (one 10-ton truck) to transport goods between two logistics depots within Ibaraki Prefecture.

<Roles of Each Company>

- Euglena: Supply of biofuel "Susteo 51" - Marubeni Energy Corporation: Procurement and supply of fuel - Shinozaki Transport Co., Ltd.: Transportation operations using the fuel - Shipper Companies: Adoption of low-carbon transportation and cost burden - Marubeni Logistics Corporation: Overall logistics scheme design and operational management

Furthermore, when specific shippers*3 and specific transportation providers*4 use "Susteo 51" mixed with 51% HVO in dedicated vehicles, the biofuel content will exceed half, allowing it to be reported as a "non-fossil fuel vehicle*6" in the mid-to-long-term plan required by the revised Energy Conservation Act*5. Additionally, using "Susteo 51" enables a reduction in CO2 emissions, and is expected to contribute to efficient greenhouse gas emission reduction.

Key Points of This Initiative

1 Decarbonized Logistics Led by Shippers (Scope 3 Reduction)

This is a model where shipper companies, who request product transportation, actively participate in decarbonization. It allows them to utilize measures for reducing greenhouse gas emissions from logistics (Scope 3) without solely relying on logistics providers for costs and efforts associated with environmental load reduction.

2 Easy Introduction by Utilizing Existing Vehicles/Equipment

Susteo is a drop-in fuel that can be used with existing diesel vehicles and fuel supply infrastructure as they are. It can be introduced simply by switching fuels, without the need for large-scale capital investments such as vehicle replacement or new refueling facilities. Furthermore, since operations can begin in a limited scope, such as specific vehicles or transport routes, the barrier to adoption is low for transportation providers and shippers, making it a model that facilitates the promotion of decarbonization across the entire supply chain.

Future Development

Euglena aims to expand the adoption of this logistics scheme, built upon the current initiative, to a supply chain level including shipper companies, in order to accelerate the social implementation of biofuels. Moving forward, Euglena will continue to contribute to decarbonization by strengthening collaborations with partner companies towards the realization of a sustainable society.

About Next-Generation Biodiesel Fuel "Susteo"

"Susteo" is a next-generation biodiesel fuel made from raw materials such as used cooking oil and vegetable oils. It is a drop-in fuel*7 that can be used with existing diesel vehicles and fuel supply infrastructure as they are. It is expected to reduce CO2 emissions over its entire lifecycle and contribute to the realization of a decarbonized society.

*1 Emission reduction including Scope 3 (logistics) *2 HVO (Hydrotreated Vegetable Oil): Next-generation biodiesel fuel produced by hydrotreating oil and fat raw materials such as used edible oil and vegetable oil. It has the same properties as diesel fuel and can be used directly in existing diesel engines. *3 Specific Shipper: A business operator that transports 30 million ton-kilometers or more of cargo annually through contracts with cargo transportation providers. *4 Specific Transportation Provider: A transportation provider designated by the Minister of Land, Infrastructure, Transport and Tourism, possessing a certain scale of transportation capacity. *5 Revised Energy Conservation Act: "Act on Rationalizing Energy Use and Promoting the Transition to Non-Fossil Fuels." It mandates specific shippers and specific transportation providers to submit mid-to-long-term plans regarding the transition to non-fossil fuels. *6 Non-Fossil Fuel Vehicle: A vehicle classification subject to reporting based on the usage of non-fossil fuels, in accordance with the revised Energy Conservation Act. *7 Drop-in Fuel: Fuel that can be used as a substitute for conventional fuel without modifying existing engines or infrastructure.