CEO of KazMunayGas (KMG) Askhat Khassenov and CEO of LanzaJet Jimmy Samartzis have signed a memorandum of cooperation, agreeing to launch the production of Sustainable Aviation Fuel (SAF) in Kazakhstan, the Kazakhstani oil company reported.
According to Khassenov, KMG is pursuing a 15% reduction of its carbon footprint by 2031 (compared to the 2019 rate). Within this strategy, the development of the biofuel market in Kazakhstan is an important step toward carbon neutrality.
«The global demand for SAF is growing. As a company, we are considering the launch of SAF production in Kazakhstan,» Khassenov said.
In turn, Samartzis stated that Kazakhstan’s intention and effort to launch SAF production are very important, highlighting that LanzaJet is ready to provide its technology and expertise to support this process.
The two sides began negotiating the issue in late June 2024. At the time, some media outlets reported that a preliminary feasibility study of the project, initiated by KMG and Air Astana, had already been completed. The European Bank for Reconstruction and Development (EBRD) is expected to provide financial support for the project, the next stage of which is the preparation of a full-fledged feasibility study.
In late June, Air Astana announced that it was considering purchasing SAF to reduce its carbon footprint as the low-carbon development concept of Samruk-Kazyna implies that the airline will gradually increase the share of SAF in its fuel procurement: 5% by 2040, 15% by 2050 and 25% by 2060.
SAF is a fuel developed as an alternative to traditional aviation kerosene. This fuel is widely considered an effective tool for the decarbonization of the aviation industry. SAF can be produced from ethanol, which in turn is produced from plants and other renewable sources. As a result, SAF allows for an 80% reduction in carbon emissions compared to traditional kerosene.
LanzaJet is a key developer of SAF technology and one of the largest producers of this fuel. The company has long-term offtake contracts with the largest airlines in the world. In January 2024, it launched LanzaJet Freedom Pines Fuels, the first-ever commercial-grade facility for the production of SAF from ethanol. Among LanzaJet’s investors are British Airways and Shell.
