- Southeast Asia could supply 12% of global sustainable aviation fuel by 2050, producing 45.7 million tonnes annually from raw materials like rice husks and sugarcane.
- With low environmental risks, Indonesia, Thailand, Vietnam, Malaysia, and the Philippines contribute 90% of the region’s SAF production capacity.
- Singapore targets 1% green jet fuel use by 2026 and up to 5% by 2030, supported by a passenger levy and production at Neste’s Tuas South refinery.
A report released on September 3 shows Southeast Asia could supply 12% of the world’s sustainable aviation fuel (SAF) by 2050. This potential translates to 45.7 million tonnes of SAF annually by processing raw materials like rice husks, sugarcane, and palm oil residues.
The Roundtable on Sustainable Biomaterials (RSB) commissioned the report in mid-2023 with support from Boeing. The report highlights the region’s significant role in green aviation fuel production. Due to their abundance, rice husks and straw are the primary feedstocks, making up 37% of the region’s feedstock.
These materials also present low environmental and social risks, avoiding significant issues like deforestation, water stress, and human rights violations. Indonesia, Thailand, Vietnam, Malaysia, and the Philippines collectively contribute 90% of Southeast Asia’s SAF production capacity.
Boeing emphasised SAF’s critical role in reducing aviation’s carbon emissions over the next 30 years. The International Civil Aviation Organization (ICAO), a UN agency, set goals for the sector to achieve net-zero emissions by 2050 and a 5% reduction in carbon emissions by 2030 through cleaner energy sources.
The International Air Transport Association (IATA) plans to create a SAF registry by early 2025 to support these objectives. This registry will allow airlines to report emissions reductions accurately. Despite these initiatives, unblended green aviation fuel accounts for only 0.2% of global commercial fuel use.
Singapore’s authorities aim to have green jet fuel makeup 1% of all aviation fuel used at Changi and Seletar Airports by 2026, with a target of 3% to 5% by 2030. To fund this effort, the Singaporean government will introduce a passenger levy on flights departing Changi Airport starting in 2026. This levy will support bulk purchases of SAF for airline use.
Singapore also hosts Neste’s Tuas South refinery, the world’s largest facility for producing jet fuel from waste materials. It can produce up to one million tonnes of green jet fuel annually.
The report urges governments to implement policies that encourage SAF production. These policies include subsidies for industry-led projects and partnerships with regional organisations. The report also recommends focusing on feedstocks with high availability and low sustainability risks, such as rice husks and sugarcane pulp, instead of palm oil and corn.
During a media briefing on September 3, Robert Boyd, Boeing’s Asia-Pacific regional sustainability lead, stated that Southeast Asia possesses enough feedstock to meet the region’s jet fuel demand, provided the raw materials remain within the area.
When asked about the potential impact of SAF on flight prices, Boyd assured that costs would not rise significantly. The gradual rollout of SAF in small amounts over the coming years is expected to minimise price increases.