Japanese refiner Cosmo Oil plans to purchase sustainable aviation fuel (SAF) from Thailand's energy firm Bangchak, aiming to begin imports after 2024 to achieve its SAF supply goal.
Cosmo signed a comprehensive frame agreement on 5 December with Bangchak to buy undisclosed volumes of SAF for 10 years, once Bangchak starts 1,000 kilolitre (kl)/d commercial production of the fuel. The agreement will help Cosmo achieve its SAF supply target of 300,000 kl/yr by 2030.
The agreement is a part of Cosmo and Bangchak's joint study on SAF, bio-naphtha and bio-ethanol purchases, as well as the use and shipment of low-carbon hydrogen. This is in addition to businesses related to carbon capture, use and storage as well as lubricants.
Cosmo also plans to produce 30,000 kl/yr of SAF at its Sakai plant in the Osaka prefecture, with the start-up targeted in the April 2024-March 2025 fiscal year.
Cosmo is accelerating its efforts to diversify away from refining businesses. The company will invest ¥140bn ($961mn) in its non-oil businesses, which includes ¥25bn for SAF, over 2023-26. The non-oil business allocation accounts for 33pc of the total investment in the period.

