Petronas, Idemitsu in deal to develop sustainable aviation fuel

KUALA LUMPUR (Reuters) – Malaysian state oil company Petronas and Japan’s second-biggest oil refiner Idemitsu Kosan Co signed a preliminary agreement to collaborate on development and distribution of sustainable aviation fuel, the companies said on Thursday.

They 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 sustainable aviation fuel”, they said in a statement.

The two companies will also aim to establish a sales and distribution network to ensure accessibility to airlines, they added.

(Reporting by A. Ananthalakshmi; Editing by Martin Petty)