REPORT
Pathways to Sustainable Aviation Fuel
(APAC Edition)
Pathways to Sustainable Aviation Fuel(APAC Edition)
Our report examines the current state of SAF development in the APAC region, highlighting key initiatives, challenges, and opportunities.
Introduction
Countries in the Asia Pacific (APAC) region are making significant strides in SAF production and adoption. China, for instance, has set a target for using 50,000 tonnes of SAF by 2025, while Japan aims to substitute 10% of aviation fuel with SAF by 2030. Singapore will implement a SAF mandate for all departing flights from 2026, starting at 1% and aiming for 3-5% by 2030.
The region’s approach to SAF development is diverse, reflecting the varied resources and priorities of different countries. While some, like Malaysia and Indonesia, are exploring palm oil-based SAF, others such as Australia and India are focusing on agricultural residues and waste-to-fuel technologies.
However, challenges remain. The high cost of SAF production, limited feedstock availability, and sustainability concerns surrounding certain feedstocks like palm oil pose significant hurdles. Additionally, the varying sustainability standards across different regions complicate international SAF trade and adoption.
In conjunction with the upcoming Sustainable Aviation Futures APAC Congress in Singapore, scheduled from 4 to 6 November 2024, we have prepared this comprehensive report to outline critical opportunities and challenges in the SAF industry.
IN PARTNERSHIP WITH
Five key challenges facing the saf industry
The growing debate around the S in SAF
The ‘S’ in SAF stands for ‘Sustainable’, but what exactly constitutes sustainability in aviation fuel is a matter of growing debate. The issue is particularly pertinent in the APAC region, where feedstock choices and production methods vary widely across countries.
Availability of sustainable feedstocks
A key challenge for SAF in the APAC region is securing sufficient quantities of sustainable feedstocks, particularly agricultural residues in countries like India and China, while managing competing uses and environmental concerns related to palm oil and used cooking oil.
Certification schemes
The multitude of certification schemes poses challenges for APAC producers seeking to export to markets like Europe and North America. The associated high costs and ongoing debates about the effectiveness of these schemes necessitates better harmonisation to suit local contexts while meeting global standards.
Tackling high costs and limited production
High initial costs, lack of infrastructure, and the need for significant capital investments pose significant challenges. A multi-faceted approach, including government incentives, technological innovations, and scaling up production, will be essential to overcome these obstacles.
Political uncertainties
Political uncertainties can significantly impact the development of SAF in the APAC region. Changes in government can lead to the reversal or weakening of climate policies, potentially derailing progress in SAF development and adoption.
