Pertamina produces 11 mil liters co-processed SAF ahead 2027 mandate

Indonesia's Pertamina Patra Niaga produced about 11 million liters of co-processed sustainable aviation fuel at its Cilacap Green Refinery in October, scaling commercial supply ahead of the country's planned 1% SAF blending mandate in 2027, the state-owned company said Oct. 27.

The refinery uses its thermal distillate hydrotreating unit to co-process UCO with other feedstock components. UCO can account for up to 5% of the unit's total production capacity, said Taufik Aditiyawarman, deputy president director I of Pertamina Patra Niaga in the company statement.

"We are now in the commercialization phase, with approximately 11 million liters of co-processed SAF produced this October," Aditiyawarman said.

The announcement did not specify the precise volume of UCO consumed, the proportion of UCO incorporated into the October production batch, or the other feedstocks used in the co-processing operation.

The 11 million-liter figure represents co-processed SAF output, rather than SAF made entirely from UCO, according to the statement.

The development builds on Pertamina's initial commercial deliveries from Cilacap.

The refinery shipped its first UCO-derived SAF batch in August 2025, following trials using a 3% UCO share in the co-processing feedstock mix. Around 32,000 liters were set aside for a Pelita Air flight between Jakarta and Denpasar, with another 1.7 million liters planned for delivery to Jakarta's Soekarno-Hatta International Airport.

Cilacap's co-processing operation can produce around 1,400 kilolitres/day of SAF through the hydroprocessed esters and fatty acids pathway, according to previous Pertamina statements.

Indonesia plans to require a 1% SAF blend on international flights departing from Soekarno-Hatta International Airport in Tangerang, Banten, and I Gusti Ngurah Rai International Airport in Bali by 2027.

UCO collection develops

Pertamina is developing a domestic UCO collection network involving community waste banks around the Cilacap refinery and collection boxes at fuel stations elsewhere in Indonesia, according to the statement. Three supported waste banks collect a combined 3,984 liters/year: 2,283 liters at Beo Asri, 984 liters at Abhipraya, and 717 liters at Cahaya Asri. Residents can exchange the collected oil for cash, while deposits at some collection points can also be converted into electronic-wallet balances.

The currently disclosed community volumes are modest relative to refinery output, but the program establishes a collection route for a fragmented household waste stream. The company did not disclose its total UCO procurement volume or the share supplied through larger commercial collectors.

Pertamina has obtained International Sustainability and Carbon Certification covering CORSIA and EU requirements for its Dumai, Cilacap and Balongan refineries, SAF refinery and trading operations, and has marketed the fuel to domestic and international airlines.

Pertamina has also begun preparing a unit at its 175,000 barrels/day Dumai oil refinery for co-processing UCO, with feedstock sourced through the company's "JELMA" program that collects household UCO through a community-based system.

The company has also previously outlined plans to expand co-processed SAF production to its Dumai and Balongan refineries. Both facilities were being prepared for production of around 8,000 b/d, with startup previously targeted for the second half of 2026.

Platts, part of S&P Global Energy, assessed Sustainable Aviation Fuel HEFA-SPK FOB Straits, reflecting CORSIA-certified cargoes, at $2,100/metric ton Oct. 26, unchanged from Oct. 23, considering adjacent market information.

The SAF FOB Straits premium was assessed at $703.50/mt over Platts Jet Kero FOB Singapore forward curve (MOPs), up $26.50/mt from Oct. 23.