Petronas and Idemitsu to Collaborate on Development of Sustainable Aviation Fuel

Japanese petroleum and energy firm Idemitsu Kosan (Idemitsu) and Malaysia’s Petronas have signed a Memorandum of Understanding (MoU) to enhance capabilities across the supply chain and optimise the route to market for Sustainable Aviation Fuel (SAF).

Under the terms of the MoU, Petronas, and Idemitsu 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 SAF accessibility to airlines.

Commenting on the MoU Idemitsu Director and Managing Executive Officer Masahiko Sawa said: “We expect this new initiative will contribute to the achievement of carbon neutrality in the aviation industry, Idemitsu is engaged in the development of various raw materials and marketing for SAF, and we will utilise and further develop them in this joint study.”

Petronas 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 teams.

Idemitsu meanwhile 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.