TotalEnergies SE (NYSE:TTE) penned a Heads of Agreement (HoA) with China Petroleum and Chemical Corporation (OTC:SNPMF) (SINOPEC) to jointly develop a Sustainable Aviation Fuel (SAF) production unit at a SINOPEC's refinery in China.
SINOPEC and TotalEnergies will jointly own the planned unit, which will have the capacity to produce 230,000 tons of SAF annually.
The unit will process local waste or residues from the circular economy (cooking oils and animal fats).
Yongsheng Ma, SINOPEC Group Chairman, said: "This milestone collaboration with TotalEnergies is in line with our strategy in the development of low carbon solutions for China and the world. SINOPEC is committed to providing green and low-carbon energy solutions while improving quality and efficiency of its asset portfolio."
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Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, said, "We are very pleased to collaborate with SINOPEC, a major player in the global refining industry, to produce sustainable aviation fuels and structure a SAF production chain in China."
TotalEnergies has set itself a target of 1.5 million tons of annual SAF production by 2030.
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Price Action: TTE shares are up 0.53% at $68.65 premarket on the last check Tuesday.