PETRONAS, Idemitsu Kosan collaborate on ‘green’ aviation fuel development

SINGAPORE (ICIS)–Malaysian state-owned energy firm PETRONAS and Japan’s petrochemical producer Idemitsu Kosan have agreed to collaborate on the development of sustainable aviation fuel (SAF), which would include exploring other potential non-edible feedstock for its production.

The companies signed a memorandum of understanding (MOU) “to enhance capabilities across the supply chain and optimize the route to market” for SAF, they said in a joint statement on 5 October.

Financial details of the deal were not disclosed.

“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,” the companies said.

PETRONAS and Idemitsu Kosan also intend to establish “a robust SAF sales and distribution network to ensure SAF accessibility to airlines”.

Idemitsu director and managing executive officer Masahiko Sawa said he expects “the new initiative will contribute to the achievement of carbon neutrality in the aviation industry through the early implementation and deployment of SAF”.

PETRONAS expects to have a large-scale production of SAF and other types of biofuels by 2026 in Malaysia through its biorefinery in Pengerang, Johor and co-processing in Melaka, according to the joint statement, but provided no details on capacity.

Idemitsu has technologies to produce SAF from non-fossil renewables such as ethanol and waste cooking oils – referring to alcohol-to-jet (ATJ) and hydroprocessed esters and fatty acids (HEFA) technologies, respectively.

In Japan, Idemitsu is working to establish a domestic SAF production system with an annual capacity of 500,000 kilolitres (KL), in line with the Japanese government’s target to replace 10% of aviation fuel consumption 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 for Unit 2 and beyond, with the aim of starting supply in the late 2020s,” according to the joint statement.