PVOIL Partners FatHopes Energy to Collect Used Cooking Oil for SAF

Overview

PVOIL (Tổng công ty Dầu Việt Nam) has entered a strategic partnership with FatHopes Energy to collect used cooking oil (UCO) across Vietnam, starting in Hồ Chí Minh City. The initiative leverages PVOIL’s network of over 1,050 gas stations and its logistics arm, PVOIL Trans, to supply feedstock for sustainable aviation fuel (SAF). This marks PVOIL’s entry into the SAF value chain, a market with significant growth potential in ASEAN.

Key Facts

• Partnership announced on September 7, 2025, between PVOIL and FatHopes Energy.
• Initial rollout in Hồ Chí Minh City, with plans to expand nationwide.
• PVOIL operates approximately 1,050 gas stations across Vietnam.
• PVOIL Trans, a PVOIL subsidiary, will directly organize collection operations.
• Vietnam’s UCO feedstock potential is estimated at 150,000–250,000 tonnes per year.
• ASEAN SAF demand is projected to rise from 15,000 barrels/day in 2030 to over 700,000 barrels/day by 2050.
• A 5% SAF blending mandate in ASEAN by 2030 could create a USD 25 billion annual market.

What Happened

On September 7, PVOIL and FatHopes Energy signed a strategic cooperation agreement to build a used cooking oil collection network in Vietnam. The program will initially operate in Hồ Chí Minh City, then expand to other provinces. PVOIL Trans, a member unit of PVOIL, will directly participate in organizing collection from restaurants, industrial kitchens, food processing facilities, seafood processors, and households.

PVOIL’s competitive edge lies in its existing infrastructure: 1,050 fuel stations, storage systems, and transport logistics. This network provides a ready-made collection and aggregation system for UCO, which is otherwise scattered across millions of sources. The company aims to control feedstock supply, a critical bottleneck in SAF production.

The partnership aligns with regional trends. According to the ASEAN SAF 2050 Outlook, SAF can reduce CO2 emissions by up to 80% compared to traditional jet fuel. Vietnam is seen as a potential net SAF exporter by around 2040, with abundant UCO and biomass resources.

Market Context

OIL, listed on UPCOM, closed at 13,700 VND on September 8, 2025. The stock has been under pressure amid broader oil and gas sector volatility. This partnership, however, signals a strategic pivot toward renewable energy and circular economy initiatives, which could differentiate PVOIL from traditional fuel distributors. The move also comes as Vietnam’s aviation sector begins adopting SAF, with Petrolimex Aviation blending SAF and Vietjet using it on flights since 2024.

Strategic Significance

For long-term investors, this partnership positions PVOIL as a first-mover in the SAF feedstock supply chain in Vietnam. By leveraging its extensive distribution network, PVOIL can aggregate UCO at scale, ensuring traceability and quality—key requirements for SAF producers. This could open new revenue streams beyond traditional fuel sales, aligning with global decarbonization trends. The company is not just collecting waste; it is building infrastructure for a future energy market. If successful, PVOIL could become a critical supplier to domestic and international SAF manufacturers, potentially enhancing its valuation.

What to Watch

• Expansion of collection network beyond Hồ Chí Minh City to other provinces.
• Volume of UCO collected in the first 12 months and any announced offtake agreements.
• Regulatory developments on SAF blending mandates in Vietnam and ASEAN.
• PVOIL’s quarterly earnings reports for any revenue contribution from UCO collection.
• Potential partnerships with SAF producers or refiners, such as PetroVietnam’s refineries.