Petrolimex, Keppel team up on SAF in Vietnam

Vietnam National Petroleum Group (Petrolimex) and Singapore-based asset manager Keppel Infrastructure Holdings announced signing of an agreement to explore sustainable aviation fuel (SAF) production and supply in Vietnam.

Under the agreement, the two will work together to explore opportunities in SAF trading and production in Vietnam from a range of feedstocks and production pathways.

Petrolimex chairman Pham Van Thanh called the agreement a strategic step forward in advancing the group’s roadmap for green transformation.

The two firms will also work on developing a supply chain to support the country’s aviation decarbonisation ambitions.

Lim Yong Wei, CEO of Keppel Infrastructure, said the agreement would allow both parties accelerate the creation of a SAF ecosystem in Vietnam.

However, the SAF industry in Asia remains in its infancy, and Vietnam currently lacks domestic production facilities. The partnership seeks to address these gaps and position the country as a future SAF hub in Southeast Asia.

Earlier in April, Vietnam Biofuels Development Joint Stock Company (VNB) said it is looking to enter into the expanding SAF market following a definitive merger agreement with International Media Acquisition Corp. (IMAQ).

The $1bn deal, will see the combined entity rebranded as VI Energy and listed on the NASDAQ.

The Vietnamese firm which has operated since 2014, currently specialises in producing fuel, solvent and food alcohol.