Petronas and Idemitsu Kosan Co., Ltd. (Idemitsu) have signed a Memorandum of Understanding to enhance capabilities across the supply chain and optimise the route to market for Sustainable Aviation Fuel and also a feasibility study to scale-up bio feedstock possibilities.
The study will include production cost analysis and security in ensuring a steady and efficient supply chain for the sustainable development of SAF. This includes exploring the supply potential of non-edible oil feedstock trees suitable to produce SAF, such as Pongamia and Jatropha. In addition, both companies will also work on establishing a robust SAF sales and distribution network to ensure SAF accessibility to airlines.
Petronas also said it will soon have the capacity for large-scale production of SAF and other types of biofuels by 2026 through its biorefinery in Pengerang, Johor, and co-processing in Melaka. This will enable it to capture markets beyond aviation to include transportation as well as Formula One and its logistics team. Wih its strong global presence the partnership is able to tap in order to access a broader range of feedstocks while seizing market growth opportunities within the expanding SAF sector worldwide.
Idemitsu’s expertise resides in its technologies to produce SAF from non-fossil renewables to help create a competitive future for the aviation industry. This is exemplified by its ATJ and HEFA technologies, which convert ethanol and waste cooking oils respectively into SAF.
Idemitsu is working to establish a domestic SAF production system of 500,000 KL/year to achieve the goal set by the Government of Japan and the aviation industry to replace 10% of JET fuel consumption refuelled by airlines in Japan with SAF by 2030.
