Petronas, Idemitsu Kosan sign agreement to develop SAF

Malaysia’s state oil company Petronas and Japan’s oil refiner Idemitsu Kosan have entered in an agreement to develop and distribute sustainable aviation fuel (SAF), the companies announced in a press release issued on Thursday.

Under the agreement, the two oil firms will focus on a feasibility study to scale-up bio feedstock possibilities, 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 accessibility to airlines.

Petronas is targeting large scale production of SAF and other types of biofuels by 2026 through its biorefinery in Pengerang, Johor and co-processing in Melaka.

Meanwhile, 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 with SAF by 2030.

To this end, in addition to demonstration using ATJ technology at the Chiba Complex, Idemitsu is also considering deployment of HEFA technology.