Vietnam kicks off domestic SAF production to drive aviation decarbonization

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Petrolimex signs sustainable aviation fuel (SAF) supply agreement with Vietjet Air. (Photo: Vietjet)

Vietnam has achieved its first milestone in local production of sustainable aviation fuel (SAF). On October 15, Petrolimex unveiled its domestically produced SAF and signed a supply agreement with Vietjet Air, becoming the first mover toward the goal of “produced in Vietnam, used in Vietnam” and accelerating the aviation sector’s decarbonization efforts.

Petrolimex debuts in-house SAF production

Petrolimex Aviation, the subsidiary in charge of jet fuel production, announced that its Nha Be depot has rolled out SAF, making it the first enterprise in Vietnam to master international blending technology and secure actual production capacity. From importing feedstocks to producing SAF, the process is fully handled in-house.

Petrolimex Aviation’s SAF production and fueling systems are now certified under the International Sustainability & Carbon Certification – EU (ISCC EU) and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), aligning with global standards adopted across more than 130 countries.

Nguyen Van Hoc, General Director of Petrolimex Aviation, said the international certification validates the company’s SAF capabilities and expressed hopes of expanding partnerships with domestic and international stakeholders to promote a “green, safe, and sustainable aviation industry.”

Vietnam’s Civil Aviation Authority director, Uong Viet Dung, highlighted the move as strategically significant, noting it provides a foundation for domestic SAF supply while also meeting international demand.

Petrolimex unveiled its domestically produced SAF and signed a supply agreement with Vietjet Air on Oct. 15.  (Photo: Petrolimex Aviation)

Petrolimex unveiled its domestically produced SAF on Oct. 15.  (Photo: Petrolimex Aviation)

Vietjet secures first SAF purchase, aligning with government goals

During the launch event, Petrolimex Aviation signed cooperation agreements with Vietjet Air and U.S.-based Associated Energy Group (AEG Fuel).

Vietjet took delivery of the first 1,200 cubic meters of blended SAF, certified with a Proof of Sustainability (PoS) under ISCC EU to ensure both product quality and verified carbon reductions. AEG Fuel will support Petrolimex in distributing SAF to overseas markets.

To Viet Thang, Vietjet’s Standing Vice President, noted that the airline has ordered a fleet of 576 modern aircraft and plans to prioritize SAF adoption across its green fleet, significantly cutting emissions and contributing to environmental protection.

This builds on Vietjet’s previous milestone in October 2024, when the airline conducted two flights partially powered by SAF in cooperation with Petrolimex Aviation. SAF is estimated to reduce lifecycle emissions by up to 80% compared with conventional jet fuel.

In May 2024, Vietnam Airlines became the country’s first carrier to operate a commercial flight using SAF, flying from Singapore to Hanoi. The flag carrier had also joined IATA’s carbon emissions measurement program, which provides a baseline for future mitigation actions.

Source: Vietnam+Vietjet AirVIRPetrolimexVietnam Airlines

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