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In line with the Sustainable Aviation Fuel (SAF) production target which was announced in the Strategic Transition Plan by our Company on November 24, 2021, detailed engineering studies for the planned investment at İzmir Refinery still continues. It is anticipated that the final investment evaluation will be completed before the end of next year and the investment will commence subsequently. Furthermore, to ensure a reliable supply of raw materials when moving to the production phase, raw material feedstock trading and supply contracts between Tiryaki Agro Gıda Sanayi ve Ticaret A.Ş. ("Tiryaki Agro") and Tüpraş and Tüpraş Trading Ltd are signed, within the scope of our efforts to procure second generation plant and animal waste feedstocks.
Within the framework of these agreements, as of January 1, 2025, Tüpraş Trading Ltd will begin trading in feedstock. From January 1, 2029, for a duration of 10 years, a minimum of 300 thousand tons of the Company's estimated annual requirement of 450 thousand tons of vegetable and animal waste raw materials will be supplied by Tiryaki Agro and/or its subsidiaries.
According to the agreement, the payment to be made by Tüpraş to Tiryaki Agro for the feedstock to be provided for production purposes will be determined by a methodology linked to North European feedstock price indices and North European SAF price indices on the respective date. The agreement also includes mutual purchase and sale commitments and associated penalties, termination in the event of non-construction of the SAF facility, rights and obligations related to certificates and quality standards concerning the types of raw materials.
This statement has been translated into English for informational purposes. In case of a discrepancy between the Turkish and the English versions of this disclosure statement, the Turkish version shall prevail.
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