PETALING JAYA: Petroliam Nasional Bhd (PETRONAS) and Idemitsu Kosan Co Ltd 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.
“Our partnership with Idemitsu builds on a legacy of almost five decades of shared ambition to address the everchanging energy needs worldwide. In the latest collaboration, our valued partner will continue to have access to our distinctive advantage, enabling us to collectively deliver impactful outcomes for the benefits of our end customers. This is the standard of value we consistently offer to our business-to-business customers,” PETRONAS executive vice president and chief executive officer of downstream Datuk Sazali Hamzah said in a statement.
Idemitsu director and managing executive officer Masahiko Sawa said: “As the two companies have overcome various challenges together, we expect this new initiative will contribute to the achievement of carbon neutrality in the aviation industry through the early implementation and deployment of SAF in society. 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.”
With ongoing endeavours in the space of cleaner energy solutions, PETRONAS 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 PETRONAS to capture markets beyond aviation to include transportation as well as Formula One and its logistics team.
