Mitsui’s 2025 Biofuel Gambit: How Strategic Partnerships Are Dominating the Global Sustainable Fuels Market

Mitsui’s Commercial Scale Push: From Biofuel Pilots to Global Projects in 2025

Mitsui has rapidly escalated its sustainable fuels strategy from foundational partnerships and pilot projects between 2021–2024 to executing large-scale commercial operations and building integrated global supply chains in 2025. This strategic acceleration demonstrates a clear shift from exploration to market dominance, transforming the company from a traditional commodity trader into an architect of the new energy ecosystem. The diversity of its projects—spanning aviation, marine, and ground transport—signals a maturing market where tailored decarbonization solutions are moving toward mainstream adoption.

• Between 2021 and 2024, Mitsui’s activities centered on establishing a diverse portfolio through initial agreements and investments, such as the 2022 joint study with Cosmo Oil for Sustainable Aviation Fuel (SAF) production and the 2023 investment in Optimus Technologies for B100 biodiesel systems, which laid the groundwork for future commercialization.
• In 2025, the strategy pivoted decisively to execution, marked by the construction of the 270,000 tonnes/year Galp Hydrotreated Vegetable Oil (HVO)/SAF plant in Portugal and Cosmo Oil’s completion of its SAF biorefinery in Japan, moving from feasibility studies to tangible production assets.
• This acceleration is further evidenced by downstream and midstream integration in 2025, including a Memorandum of Understanding (MOU) with Sinopec and Marubeni for marine biodiesel supply chains and a joint venture with PETRONAS to build a fleet of LCO2 carriers, which supports the future e-fuel economy.
• Mitsui is also proving commercial viability in niche applications, progressing from a 2024 pilot with 7-Eleven using B100 fuel to a 2025 global distribution agreement with Optimus Technologies, showing a clear pathway from testing to scaling decarbonization solutions across different sectors.

Analyzing Mitsui’s Strategic Investments in Sustainable Fuels

Mitsui is deploying significant capital to secure its position across the entire sustainable fuel value chain, from feedstock and technology to large-scale production facilities. Its investment strategy is characterized by high-value joint ventures and strategic acquisitions that provide access to key markets, innovative technologies, and reliable feedstock sources. The financial commitments made since 2022 underscore a deep-seated conviction in the long-term economic viability of biofuels and e-fuels.

Table: Mitsui’s Key Investments in Biofuels and Next-Generation Fuels (2022-2025)

How Mitsui’s Partnership Ecosystem is Shaping the Biofuel Value Chain

Mitsui is building a global biofuels ecosystem by forging strategic partnerships that span technology development, production, supply chain logistics, and carbon management. This collaborative approach allows Mitsui to leverage the expertise of specialized partners, de-risk large-scale projects, and accelerate its expansion into key markets and technologies.

Table: Mitsui’s Strategic Biofuel & Sustainable Fuel Partnerships (2022-2025)

Mitsui’s Geographic Expansion: Building a Global Biofuel Footprint

Mitsui has strategically expanded its sustainable fuel operations from a foundational focus on Japan and initial European entry between 2021–2024 to a truly global, multi-regional footprint in 2025, with major production hubs now developing in Europe, new supply chains in Asia, and feedstock ventures in the Americas. This geographic diversification mitigates regional risks and positions Mitsui to capitalize on varying regulatory incentives and feedstock advantages worldwide.

• Early activities between 2021 and 2024 were concentrated in Japan, with joint studies for SAF production with Cosmo Oil and Taiyo Oil, alongside a key strategic entry into Europe via the 2023 partnership with Galp in Portugal and an investment in European Energy’s e-methanol project in Denmark.
• In 2025, the European strategy solidified into large-scale execution, with construction underway on the €400 million Galp biofuels plant in Sines, Portugal, establishing a major production base to serve the EU’s growing demand for HVO and SAF.
• The year 2025 also saw significant expansion in Asia beyond Japan, with a $408 million investment in a bamboo-to-biofuel project in India, the establishment of a marine biofuel supply hub in Singapore with EcoCeres, and a CCS project in Thailand, diversifying both feedstocks and decarbonization activities across the continent.
• Mitsui deepened its presence in the Americas in 2025 with a $37 million investment in the Vale do Tijuco biomethane project in Brazil, tapping into the region’s strong biomass potential and adding another fuel type to its global portfolio.

Mitsui’s Technology Portfolio: From Pilot to Commercial Scale

Mitsui’s technology strategy has matured from exploring and investing in emerging pathways between 2021–2024 to commercially deploying and scaling multiple proven biofuel technologies in 2025, establishing a diversified portfolio that balances immediate market needs with future growth opportunities. This approach allows the company to serve existing markets with commercial-ready solutions while simultaneously cultivating next-generation technologies that will define the future of energy.

• The initial period (2021-2024) involved backing a range of technologies, including investment in Optimus Technologies’ commercial-ready B100 system, supporting LanzaJet’s scaling Alcohol-to-Jet (ATJ) process, and entering the nascent e-fuels space through the European Energy e-methanol project.
• 2025 marks the transition to commercial scale, with construction of the Galp plant focused on the proven Hydrotreated Vegetable Oil (HVO) pathway and the completion of Cosmo Oil’s refinery, validating these technologies for mass production.
• In parallel, 2025 saw a push to scale emerging technologies, with the Japanese government providing a subsidy for the LanzaJet ATJ project, signaling validation and a clear path to market for this crucial ethanol-to-SAF pathway.
• Mitsui continues to future-proof its portfolio in 2025 by investing in enabling infrastructure, such as the CCS project in Thailand and the LCO2 carrier venture with PETRONAS, which are critical for the long-term viability of e-fuels and other carbon-recycling technologies.

Mitsui’s Strategic Evolution in Sustainable Fuels: A SWOT Analysis

Table: SWOT Analysis of Mitsui’s Biofuel Strategy (2021-2025)

Future Outlook: Mitsui’s Path to Becoming a Global Biofuel Producer

The critical focus for Mitsui ahead is the successful operational launch of its flagship production assets, which will validate its multi-billion-dollar pivot and establish it as a leading integrated producer, not just a trader, of sustainable fuels. The company’s future success now hinges on its ability to execute these large-scale projects on time and on budget, turning strategic partnerships into profitable, market-leading operations.

• The most important milestone to watch is the 2026 operational start of the 270,000 tonnes/year Galp HVO/SAF plant in Portugal, which will serve as the cornerstone of Mitsui’s European biofuels business and a major revenue generator.
• In Japan, the scaling of the LanzaJet/Cosmo Oil ATJ project will be crucial for capturing a significant share of Japan’s projected 1.2 billion liter SAF market by 2030, confirming its first-mover advantage in this key technology.
• The expansion of marine biofuel supply chains, demonstrated by the 2025 MOU with Sinopec and Marubeni, is a key growth area to watch, as it will link Mitsui’s production capabilities directly to its core shipping and logistics businesses, creating a powerful internal value chain.
• Finally, continued investments in enabling infrastructure, like the CCS project in Thailand and the LCO2 carrier fleet, will signal Mitsui’s long-term commitment to the e-fuel economy and its vision of a holistic, decarbonized energy system.

Frequently Asked Questions

What is the main change in Mitsui’s biofuel strategy in 2025?
In 2025, Mitsui’s strategy shifted decisively from exploration to execution. While the period between 2021-2024 focused on establishing foundational partnerships and pilot projects, 2025 is marked by the construction of large-scale commercial assets, such as the Galp HVO/SAF plant in Portugal, and building integrated global supply chains, transforming Mitsui from a trader into an architect of the new energy ecosystem.

What are some of Mitsui’s most significant investments in sustainable fuels?
Mitsui has made several major investments, including a 25% stake in a joint venture with Galp for a €400 million HVO/SAF biorefinery in Portugal, acquiring a 49% stake in the world’s largest e-methanol facility from European Energy, leading a $17.8 million funding round for Optimus Technologies, and participating in a ¥60 billion ($408 million) funding initiative for a bamboo-to-biofuel refinery in India.

Which key technologies is Mitsui focusing on for its sustainable fuel portfolio?
Mitsui is building a diversified technology portfolio that includes commercially proven pathways like Hydrotreated Vegetable Oil (HVO) and B100 biodiesel. It is also scaling emerging technologies such as Alcohol-to-Jet (ATJ) for Sustainable Aviation Fuel (SAF) with LanzaJet and investing in future-focused areas like e-methanol and enabling infrastructure for e-fuels, including Carbon Capture and Storage (CCS) and liquefied CO2 carriers.

How is Mitsui using partnerships to achieve its goals?
Mitsui is creating a global ecosystem by forming strategic partnerships across the entire value chain. It collaborates with energy companies like Galp and Cosmo Oil for large-scale production, technology innovators like LanzaJet and Optimus Technologies to access proprietary processes, and logistics partners like Sinopec, Marubeni, and PETRONAS to build supply and carbon management infrastructure. This approach allows Mitsui to de-risk investments and accelerate its expansion.

What is the most important upcoming milestone for Mitsui’s biofuel business?
According to the analysis, the most critical milestone for Mitsui is the planned 2026 operational launch of the 270,000 tonnes/year Galp HVO/SAF plant in Portugal. This project is considered the cornerstone of Mitsui’s European biofuels business and will serve as a major test of its ability to execute large-scale projects and turn its strategic investments into a profitable, market-leading operation.