JAKARTA – Energy issuer PT Essa Industries Indonesia Tbk (ESSA) is exploring potential buyers (offtakers) and strategic partners for its project to build a Sustainable Aviation Fuel (SAF) or biofuel plant.

Despite partnering with potential strategic partners, ESSA emphasized that it will remain the majority shareholder in the project.

"Currently, the project is still in internal planning stages, including the selection of technology to be used," wrote BRI Danareksa Sekuritas analysts Richard Jerry and Sabela Nur Amalina in their research on Monday (3/2).

ESSA aims to start commercial production at the plant by Q4 2027 or Q1 2028.

According to an equity research report by BRI Danareksa Sekuritas, the production capacity of ESSA's SAF plant is targeted at 150,000 metric tons per year. However, so far, ESSA management has not disclosed the investment amount required for the project.

BRI Danareksa Sekuritas noted that based on greenfield projects in the United States, the cost of building a SAF plant could reach USD 6,000 to USD 9,000 per ton.

Meanwhile, the global SAF market is still relatively small, with total production of around 1 million tons in 2024, or only 0.3% of total global jet fuel demand. The largest player in the SAF industry currently is Neste, which produced around 0.5 million tons in 2024.

However, according to the International Air Transport Association (IATA), SAF consumption is expected to grow significantly, reaching 4.7% of total global jet fuel demand by 2030.

For information, ESSA entered the SAF business through its subsidiaries, PT ESSA Sustainable Indonesia (ESI) and PT ESSA SAF Makmur (ESM). ESSA’s President Director and CEO, Kanishk Laroya, stressed that the expansion into the SAF sector aligns with the global aviation industry's need to reduce CO₂ emissions.

"By leveraging our expertise in energy and chemicals, we are positioning ESSA at the forefront of the green aviation revolution, while making ESSA Indonesia's first ISCC CORSIA-certified plant," Kanishk said in an official statement on Monday (23/12). (DK/ZH)