KazMunayGas says it is ready to start production of Jet A-1 fuel

KazMunayGas (KMG, a subsidiary of Samruk-Kazyna) is ready to deploy production of Jet A-1 jet fuel at one of its three oil refineries in Atyrau, Pavlodar and Shymkent within two weeks, the company told Kursiv.media.

«All three large refineries are ready to produce Jet A-1. By the middle of 2024, Almaty airport is expected to be ready to use Jet A-1. All three oil refineries can start production of Jet A-1 within two weeks when necessary. Jet A-1 will be produced according to the production plan,» the company reported.

All three oil refineries operate under a processing scheme based on agreements with oil owners, which is why the new fuel is expected to have about the same margins as traditional aviation fuel.

KMG also commented on negotiations between CEO of the company Ashkat Khassenov and executives of the American tech company LanzaJet and the Japanese investment company Mitsui that were held on June 20. At that time, the three sides discussed the idea of establishing the production of sustainable aviation fuel (SAF).

«We will know procurement deadlines, costs, construction timelines and what shares the three sides would have in the project once its preliminary feasibility study is approved. All in all, we are going to gradually increase the use of SAF as our concept of low-carbon development requires that,» KMG said.

The preliminary feasibility study for the project of SAF production in Kazakhstan was initiated by KMG and Air Astana (also a subsidiary of Samruk-Kazyna) with financial support from the European Bank for Reconstruction and Development (EBRD). The next stage is the development of a project feasibility study.

Air Astana is already reviewing the possibility of using SAF for its aircraft fleet. Under the low-carbon development concept of Samruk-Kazyna, the share of SAF should increase to 5% by 2040, 15% by 2050 and 25% by 2060.

KMG believes that Jet A-1 can be mixed with SAF, as all three of its oil refineries are ready to launch production of Jet A-1. LanzaJet and Mitsui have also shown their interest in close cooperation with KMG within the project.

LanzaJet has recently launched its LanzaJet Freedom Pines Fuels in the U.S., the first SAF production facility with a scheduled capacity of one billion gallons of SAF (one gallon is equal to 3.7 liters) by 2030. LanzaJet has the technology to process industrial emissions and natural gas into sustainable aviation fuel.

Mitsui & Co. is an investment company in Japan, part of the Mitsui Group, headquartered in Tokyo. Mitsui is actively investing in various decarbonization projects and is one of the biggest investors in LanzaJet.

SAF (Sustainable Aviation Fuel) is a green version of Jet A-1 fuel. Unlike traditional kerosene, SAF can cut emissions by 80%. SAF and Jet A-1 can be used interchangeably, which is why many airlines often mix these two types of fuel with their existing fuel in their storage cisterns.

The U.S. is planning to switch to 50% use of SAF by 2050. The EU will start from a 2% mark in 2025 and will increase this threshold to 5% in 2030 and 63% in 2050. The U.K. said that SAF will account for at least 10% of the overall amount of aviation fuel used in the country.