Mitsubishi Chemical Group Invests in Licella to Advance Oil Conversion Technology and Expand Sustainable Feedstock Solutions
Mitsubishi Chemical Group (MCG) has announced a strategic investment in Licella Holdings, an Australian company known for its proprietary Cat-HTR™ (Catalytic Hydrothermal Reactor) technology. Licella’s innovative platform converts waste plastics and biomass into valuable oil products using supercritical water under high temperature and pressure—offering a promising route to create circular chemical feedstocks and sustainable fuels such as sustainable aviation fuel (SAF).
This partnership marks a significant milestone in MCG’s broader mission to diversify its raw material sources, expand its chemical recycling capacity, and advance the transition to a low-carbon, circular economy. The investment also builds on MCG’s current involvement in the plastic-to-oil conversion space through its joint work with ENEOS Corporation, including the recent construction of a chemical recycling facility at MCC’s Ibaraki Plant in Kamisu City, Ibaraki Prefecture.
The new facility utilizes Hydro-PRT™ technology developed by UK-based Mura Technology, which is itself based on Licella’s Cat-HTR™ process. This underscores the strong foundational role Licella’s technology plays in next-generation recycling systems.
Cat-HTR™: A Versatile, Scalable Recycling Technology
Licella’s Cat-HTR™ process stands out in the advanced recycling field for its ability to handle a wide variety of waste materials—including hard-to-recycle plastics and biomass residues. By using supercritical water, the process breaks down long polymer chains and lignocellulosic material at the molecular level, converting them into liquid hydrocarbons. These can be refined into chemical feedstocks, SAF, bio-naphtha, renewable diesel, and other valuable products.
Unlike traditional pyrolysis-based methods, the Cat-HTR™ process operates under unique hydrothermal conditions that offer better carbon efficiency, feedstock flexibility, and product stability. This enables a more reliable pathway for producing high-quality outputs that meet stringent industrial and environmental standards.
MCG sees this feedstock flexibility as a key enabler in its vision to establish a “stable supply platform for green chemicals,” one of the central goals of its long-term management strategy, KAITEKI Vision 35. Through its partnership with Licella, the group aims to accelerate the industrial-scale deployment of advanced oil conversion technologies in Japan and globally.
Vision for Sustainable Aviation Fuel and Bio-Based Products
Licella’s technology is not only applicable to post-consumer plastic waste but also plays a vital role in converting woody biomass and forest residues into sustainable fuels. In a recent announcement dated March 27, 2025, MCG revealed its participation in a pre-feasibility study focused on commercializing SAF, bio-naphtha, and renewable diesel derived from domestic forest residues. This initiative plans to integrate Licella’s Cat-HTR™ platform as a core processing method.
The study is part of Japan’s broader strategy to develop domestic SAF production capacity in alignment with international decarbonization goals and to reduce dependency on fossil-based aviation fuels. Forest residues—often considered waste—are now being viewed as a valuable and renewable carbon source for fuel production.
By leveraging Licella’s unique biomass-to-oil conversion capabilities, MCG aims to support the Japanese government’s ambitions to boost SAF supply, lower carbon emissions in aviation, and build domestic energy resilience.
Strengthening Japan’s Circular Economy Strategy
This investment in Licella also aligns with the Japanese government’s push to enhance domestic circular economy systems. Chemical recycling, particularly for hard-to-recycle plastics and biomass, is an area of national importance as Japan seeks to reduce landfilling, cut plastic waste exports, and minimize reliance on fossil feedstocks.
MCG’s collaboration with Licella will play a vital role in developing integrated solutions that combine chemical recycling, feedstock diversification, and advanced refining capabilities. These systems are expected to scale up over the coming years, enabling Japan’s chemical industry to maintain competitiveness and environmental responsibility.
In addition to expanding recycling capacity, MCG is also exploring new partnerships and technology platforms to support supply chain localization, low-carbon chemical manufacturing, and innovation in sustainable materials.
Strategic Comments from Key Stakeholders
Curtis Schickner, President of Diamond Edge Ventures (MCG’s corporate venture capital arm), highlighted the strategic importance of the partnership:
“Licella’s Cat-HTR™ platform offers a scalable and flexible pathway to produce circular chemicals and sustainable fuels from hard-to-recycle waste streams and biomass—exactly the kind of innovation needed to build a stable supply platform for green chemicals.
By partnering with Licella at this pivotal stage, including supporting its efforts with the Japanese consortium on sustainable aviation fuel production, we are helping to accelerate the transition to a low-carbon, circular economy.”
Dr. Len Humphreys, Co-Founder and CEO of Licella, welcomed the investment as validation of the company’s commercial readiness:
“We are proud to partner with Diamond Edge Ventures and Mitsubishi Chemical Group at this important moment for Licella. Their funding and strategic support validate the commercial readiness of our Cat-HTR™ platform and its unique ability to deliver scalable, low-carbon solutions for hard-to-recycle plastics and biomass residues.
Together, we aim to accelerate the shift to fossil-replacement solutions that contribute to MCG’s vision for a greener, more sustainable chemical industry.”
Toward the Future: Scaling Technology for Impact
With growing demand for circular chemical solutions and low-carbon fuels, MCG’s investment in Licella marks a decisive step in scaling the infrastructure needed to meet this demand. The combination of Licella’s technological edge, MCG’s global chemical expertise, and public-private support in Japan creates a strong foundation for future expansion.
As chemical recycling matures, the importance of multi-feedstock flexibility, carbon efficiency, and industrial scalability will only grow. Licella’s Cat-HTR™ process is uniquely positioned to address these challenges, making it a cornerstone of the next generation of recycling and clean fuel production technologies.
