Petronas, Idemitsu Boost SAF

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by KnowESG,


KnowESG_Petronas, Idemitsu Boost SAF for Aviation
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PETRONAS and Idemitsu Kosan Co., Ltd. (Idemitsu) have inked a Memorandum of Understanding (MOU) aimed at elevating their capabilities throughout the supply chain and streamlining the route to market for Sustainable Aviation Fuel (SAF).

This significant milestone underscores both companies' unwavering dedication to providing environmentally conscious energy solutions on a global scale.

Within the framework of the MOU, PETRONAS and Idemitsu will concentrate on conducting a feasibility study to amplify the potential of bio feedstock options, analyse production costs, and ensure the security of a reliable and efficient supply chain for the sustainable advancement of SAF. This involves exploring the viability of non-edible oil feedstock trees, such as Pongamia and Jatropha, for SAF production.

Furthermore, the two companies will collaborate on establishing a robust SAF sales and distribution network, guaranteeing convenient access to SAF for airlines.

Datuk Sazali Hamzah, Executive Vice President and Chief Executive Officer of Downstream at PETRONAS, commented, “Our partnership with Idemitsu builds upon almost five decades of shared ambition in addressing the evolving global energy demands. In this latest collaboration, our esteemed partner will continue to leverage our distinct advantages, enabling us to collectively deliver significant outcomes for the benefit of our end-users. This is the level of value we consistently provide to our business-to-business clientele.”

Masahiko Sawa, Director and Managing Executive Officer at Idemitsu, stated, “Having surmounted various challenges together, we anticipate that this new initiative will contribute to achieving carbon neutrality in the aviation industry through the early adoption and deployment of SAF in society. Idemitsu is actively involved in the development and marketing of various raw materials for SAF, and we will utilise and further enhance these resources in this joint study.”

With its ongoing commitment to cleaner energy solutions, PETRONAS is poised to possess the capacity for large-scale SAF production and other biofuels by 2026, thanks to its biorefinery in Pengerang, Johor, and co-processing efforts in Melaka. This strategic move will enable PETRONAS to expand its reach beyond aviation, encompassing transportation, Formula One, and its logistics division.

Furthermore, PETRONAS's global presence offers this partnership the opportunity to access a wider array of feedstocks, capitalising on market growth within the burgeoning global SAF sector.

Idemitsu's expertise lies in its cutting-edge technologies for SAF production using non-fossil renewables, contributing to a competitive future for the aviation industry. This is exemplified by its ATJ and HEFA technologies, which convert ethanol and waste cooking oils into SAF, respectively.

Idemitsu is actively working toward establishing a domestic SAF production system with an annual capacity of 5,00,000 KL, aligning with the targets set by the Government of Japan and the aviation industry to replace 10% of JET fuel consumption with SAF by 2030.

To this end, Idemitsu is not only demonstrating the use of ATJ technology at the Chiba Complex but is also considering the deployment of HEFA technology for Unit 2 and subsequent phases, to commence supply in the late 2020s.

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Source: Petronas


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