SAF, or alternative fuel made from renewable sources that are used to power aircraft, is crucial for the aviation sector to reach its goal of net zero carbon emissions by 2050, but its adoption remains in a nascent phase.
Following is a look at other SAF projects and agreements in the Asia-Pacific region.
MALAYSIA
Malaysia has established an SAF blending mandate starting with 1%, according to the National Energy Transition Roadmap published by the government in 2023. It is targetting a 47% SAF blending mandate by 2050.
Malaysian state oil company Petronas and Japan's second-biggest oil refiner, Idemitsu Kosan Co, signed a preliminary agreement to collaborate on development and distribution of SAF in October 2023.
Petronas and Malaysia's palm oil board have also signed an agreement to study the use of cooking oil and palm oil waste as SAF in August 2023.
Malaysian Aviation Group (MAG) has signed an SAF offtake agreement with Petronas Dagangan, as part of efforts to develop the green fuel on a commercial scale in Malaysia in May 2023.
INDIA
India aims to have 1% SAF in aircraft turbine fuel by 2027, doubling to 2% in 2028, the government said in November. The SAF targets will initially apply to international flights.
Indian Oil Corp will set up an 80,000-metric-ton per year SAF plant with LanzaJet in Haryana, the refiner's chairman said last year. The company has a tie-up with LanzaTech for converting waste gas to ethanol and into jet fuel.
SINGAPORE
Singapore announced on Feb. 19 it would aim for a 1% SAF target starting in 2026 and plans to raise it to 3-5% by 2030, subject to global developments and the wider availability and adoption of SAF.
The Civil Aviation Authority of Singapore (CAAS) plans to introduce a SAF levy for the purchase of the fuel to be set at a fixed quantum, based on the SAF target and projected SAF price at that time.
Singapore Airlines, The Civil Authority of Singapore, and Genzero completed a 20-month SAF pilot in November, and found that although Singapore is operationally ready to supply SAF, more is needed to support its adoption.
Keppel Corporation Limited and AM Green have signed a memorandum of understanding in December to explore opportunities to produce biogenic carbon-based sustainable fuels, including SAF.
Singapore Airlines began a one-year SAF pilot programme in July 2022, working with ExxonMobil and Neste. The companies blended 1,000 tonnes of neat SAF with jet fuel and supplied the oil to Singapore Airlines and Scoot flights at Changi Airport.
Finnish refiner Neste operates the city state's only SAF plant.
CHINA
There is no set SAF mandate in China as of February 2024, although its civil aviation administration said in its 2022 roadmap that carbon emissions in the sector will peak by 2035.
China's National Energy Administration announced in November 2023 that it would launch pilot projects to spur domestic production and consumption of biofuels, including SAF and biodiesel. It did not provide details on funding and timing.
In December 2023, China's State Power Investment Corp announced a plan to produce 400,000 tons per year of SAF in northern Heilongjiang province. The plant will start as a pilot project of 10,000 tons per year, the company said. It is slated to produce its first batch of fuel in late 2025 and will expand to 400,000 by 2030, according to an executive familiar with the plans.
In April 2023, Airbus and the China National Aviation Fuel Group (CNAF) signed a memorandum of understanding to increase production and use of SAF. U.S. industrial conglomerate Honeywell has signed agreements to jointly produce SAF with northern China's Tianjian Free Trade Zone in 2023 and with southern Guangdong-based Oriental Energy Company Ltd. in 2022, according to Honeywell and state-run CGTN. The Guangdong facility will produce 1 million tons per year of SAF, Honeywell said, without mentioning a timeline.
Hong Kong-based Cathay Pacific Airways set a target in March 2023 to use SAF for 10% of its fuel by 2030.
In October 2022, an A320neo Airbus aircraft departed from Tianjin and landed in Xian using a 5% SAF blend, with SAF produced locally by Sinopec subsidiary Zhenhai Refining & Chemical Co (Zhenhai Refining), China Daily reported. In July 2023, an Air China flight from Hangzhou to Beijing marked China's first use of SAF in a commercial flight, using a 10% SAF blend, according to CGTN.
JAPAN
Japan is mandating that 10% of aviation fuel for international flights using Japanese airports be sustainable starting in 2030, the Ministry of Economy, Trade, and Industry said in May 2023.
Nippon Paper Industries Corp, Sumitomo Corp and Green Earth Institute Corp agreed in February 2023 to jointly study bioethanol production made from woody biomass. The project, if it succeeds, aims to produce bioethanol from Nippon Paper's mills in the 2027 fiscal year to be used as feedstock for SAF production.
Fuji Oil Co Ltd began planning production of bio-SAF at Sodegaura Refinery with Itochu Corp in May 2023.
Eneos Holdings Inc agreed to study production of up to 500 million litres (3.1 million barrels) of SAF and renewable diesel per year jointly with Australian refiner Ampol.
Japan's top airlines, All Nippon Airways (ANA) and Japan Airlines (JAL), have expanded their SAF purchases by adding supplies from trading house Itochu Corp and U.S. producer Raven SR.
Other companies exploring SAF production in Japan include Mitsubishi Corp, Boeing, and TotalEnergies SE.
SAF is set to replace 10%, or 1.34 million kilolitres, of fuel used by Japanese airline companies by 2030, according to the Japan Transport and Tourism Research Institute (JTTRI).
PHILIPPINES
There is no set SAF mandate in the Philippines as of February 2024.
Cebu Pacific flew a plane from Singapore to Manila powered by a 35% SAF blend from Neste in September 2022.
The airline signed a long-term strategic partnership with Shell Eastern Petroleum to make SAF more widely available for its fleet via the supply and purchase of SAF in Asia Pacific and the Middle East, with an initial volume of at least 25,000 metric tons per year.
AUSTRALIA
There is no set SAF mandate in Australia as of February 2024.
Qantas Group launched the Sustainable Aviation Fuel Coalition (SAF Coalition) in collaboration with Australia Post, KPMG Australia, Macquarie Group, the local arm of Boston Consulting Group and Woodside Energy on Nov. 11, 2022.
Qantas and Airbus SE will jointly invest A$2 million ($1.34 million) in a biofuel refinery being set up in Australia's Queensland state that would convert agricultural by-products into SAF.
The refinery is expected to produce up to 100 million litres of SAF a year, with construction due to start in 2024.
This is the first investment from a $200 million fund Qantas and Airbus set up last June to kick off the SAF industry in Australia.
The airline expects about 10% of its fuel to come from SAF by 2030, and 60% by 2050.
Last November, Climate Leaders Coalition members Ampol, Brisbane Airport, Deloitte, Qantas and Viva Energy proposed the establishment of an East Coast SAF corridor in their Scope 3 Roadmap.
Australia's first Jet Zero-style council, modelled on the eponymous government-industry partnership for SAF production in Britain, is expected to hold its first meeting this financial year ending in June 2023, said a spokesperson from the Department of Infrastructure, Transport, Regional Development, Communications and the Arts.
The council will complement the Aviation White Paper, which is expected to wrap up early 2024.
NEW ZEALAND
There is no set SAF mandate in New Zealand as of February 2024.
Channel Infrastructure NZ Ltd's scoping study for green hydrogen and synthetic sustainable aviation fuel production at Marsden Point is moving to the pre-feasibility phase, supported by the government's Energy Efficiency and Conservation Authority.
Air New Zealand and the New Zealand government plan to invest more than 2 million New Zealand Dollars ($1.23 million) in SAF studies, with the second stage of SAF feasibility work continuing through to early 2024.
(Reporting by Cassandra Yap,Trixie Yap and Colleen Howe. Editing by Gerry Doyle)
