Indonesia's state-owned refiner Pertamina is seeking around 500t of used cooking oil (UCO) for trial production of co-processed sustainable aviation fuel (SAF) at its Cilacap refinery in the first quarter of 2025, sources close to the company said.
The refiner is seeking UCO with better specifications from domestic Indonesian suppliers, said traders and sellers. The UCO will likely have a maximum of 2pc free fatty acid (FFA) content — compared with Argus-assessed maximum 5pc FFA Indonesian UCO — as well as low metals and chlorides content, said a trader, although this could not be confirmed with Pertamina.
Earlier in December, Pertamina's refining and petrochemical subholding company, Kilang Pertamina Internasional (KPI), signed an initial agreement with Indonesian UCO supplier, PT Gapura Mas Lestari. Gapura will be supplying UCO to Pertamina in 2027, sources from both companies said.
Indonesia's co-ordinating Ministry for Maritime Affairs and Investment had announced in September that international flights departing the country will be required to use 1pc SAF in their fuel mix in 2027. This will rise to 2.5pc by 2030, 12.5pc by 2040, 30pc by 2050, and 50pc by 2060.
Pertamina's "green refinery" at its 348,000 b/d Cilacap plant aims to process 6,000 b/d of UCO to produce hydrotreated vegetable oil (HVO) and SAF, when its second phase comes on line, targeted to be in 2026. Cilacap is eventually expected to produce around 300,000 kilolitres of HVO and SAF annually.
Pertamina said Cilacap's HVO will be used as a blending component in diesel fuel with better quality, compared with traditional fatty acid methyl ester biodiesel. The firm added that its HVO is also designed to meet stringent market standards in countries like those in Europe and North America. Its SAF will meet Indonesia's demand, which is likely to rise after the country released its national roadmap for SAF development in September.
Cilacap currently produces HVO, but from refined, bleached and deodorized palm oil, and SAF from refined, bleached and deodorized palm kernel oil, a product of palm kernel oil processing.
