A project from Japanese biofuel company Euglena Co Ltd aims to explore the feasibility of developing a raw material supply chain for sustainable aviation fuel (SAF) in Bangladesh, according to an announcement from the company on 3 February.
The company has been selected by Japan's Ministry of Economy, Trade and Industry for its "FY2023 Supplementary Global South Future-Oriented Co-Creation Project Subsidy", reports S&P Global Commodity Insights.
The project will assess the potential for recovering used cooking oil (UCO) and cultivating oilseed crops in Bangladesh, which remains largely untapped as an SAF feedstock supplier.
Sourcing sufficient UCO has become increasingly difficult due to rising global demand and price fluctuations. While several Asian countries have established UCO recovery businesses, Bangladesh has yet to develop significant infrastructure for such initiatives, said the report published on Monday.
Sustainable Aviation Fuel is a biofuel designed specifically for the aviation industry, produced from renewable feedstocks such as used cooking oil, animal fat waste, agricultural residues, and municipal solid waste. It has properties similar to conventional jet fuel, allowing it to be used without modifying aircraft or fueling infrastructure.
SAF can be blended with traditional jet fuel at ratios typically ranging from 10% to 50%, after which it is re-certified as Jet A or Jet A-1. One of SAF's key advantages is its potential to cut lifecycle carbon emissions by up to 80% compared to fossil-based jet fuels.
Euglena has been operating in Bangladesh for over a decade through its Euglena GENKI Program and social businesses supporting local farmers.
Leveraging these networks, the company will conduct a feasibility study from February to December 2025 in collaboration with Grameen Euglena, a joint venture with Bangladesh's Grameen Group.
The study will focus on creating a UCO collection network, assessing oilseed cultivation on underutilised land, and evaluating the potential of Bangladesh to supply SAF feedstocks to Japan.
If successful, the initiative could create economic opportunities in Bangladesh while helping Japan meet its target of replacing 10% of its aviation fuel with SAF by 2030.
The METI subsidy programme supports feasibility studies and pilot projects in Global South countries, aiming to strengthen Japan's economic partnerships while addressing critical supply chain gaps.
Beyond Bangladesh, Euglena has been expanding its SAF efforts across Asia. The company is a key partner in the Phoenix Biorefinery Project in Malaysia, a $1.3 billion biofuel production facility being developed in collaboration with Petronas and Eni.
Use of UCO in Bangladesh
Every year, Bangladeshis consume around 20 lakh tonnes of edible oil. 90% of the demand is met by importing soybean seeds, crude soybean and palm oil from countries like Argentina, Brazil and Indonesia.
According to a 2023 TBS report, Muenzer Bangla Private Limited is one of the companies collecting and recycling UCO to produce biodiesel. Muenzer Bangla Private Limited, a subsidiary of Münzer Bioindustrie GmbH in Austria, began its journey in Bangladesh in 2020.
Back in 2023, the company collected used cooking oil from more than 1,200 FBOs (food business operators, which include restaurants, hotels, manufacturers etc), aspiring to increase the number to 2,000 FBOs in the following years.
According to stakeholders, local collectors buy UCOs from big hotels and restaurants and sell them to smaller ones. The oil is filtered and bleached with chemicals to look "clean". A small portion is used to make crude or unpackaged soaps.
If not disposed of correctly, UCO can block the sewage system and contaminate water and soil, they added.
"Most of the fried things on our street side restaurants are probably made with this used oil. Snacks like chanachur and lachchha vermicelli are also made with it," claimed Goutam Abhee Barua, chief financial officer at Muenzer Bangla Private Limited.
