TOKYO, March 23 (Reuters) – Japanese oil and metals company Eneos Holdings Inc (5020.T) on Thursday said it has agreed to study production of up to 500 million litres of sustainable aviation fuel (SAF) and renewable diesel per year with Australia’s Ampol Ltd (ALD.AX).

Initially, the two would explore usage of agricultural, animal and other waste feedstocks in the northeastern Australian state of Queensland to produce biofuels for consumption at home and for exports, Eneos added in a statement.

Eneos, also Japan’s biggest oil refiner, is looking to expand in supplies of SAF to meet demand from the global aviation industry to reduce carbon footprint.

Japan’s top airlines All Nippon Airways (9202.T) and Japan Airlines (9201.T) have recently expanded their SAF purchases and committed to using SAF to meet 10% of their fuel needs by 2030 in line with a government target.

Reporting by Katya Golubkova; Editing by Varun H K

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