now loading...
Wealth Asia Connect Middle East Treasury & Capital Markets Europe ESG Forum TechTalk
Understanding ESG / Asia Connect
Harnessing Southeast Asia’s sustainable aviation fuel potential
Bio-based feedstock capacity in the region could meet 12% of the global SAF demand by 2050
Tom King 3 Sep 2024

Southeast Asia has the potential to become a major contributor to global sustainable aviation fuel (SAF) production, a new study reveals.

The region’s bio-based feedstock could meet approximately 12% of global SAF demand by 2050, a critical step towards the commercial aviation industry’s net-zero emissions target, according to the report published as part of the Decarbonising Aviation Sustainably in Southeast Asia programme.

The programme is led by the Roundtable on Sustainable Biomaterials (RSB), which is supported by Boeing and Standard Chartered.

The study estimates that Southeast Asia’s bio-based feedstock capacity could generate around 45.7 million metric tonnes of SAF annually by 2050. This assessment covers 11 countries across the region, highlighting that 75% of potential SAF feedstock can be sourced from post-consumer and agricultural waste, including cassava, sugarcane, and municipal solid waste.

Rice husks and straw emerge as the most significant SAF feedstocks, presenting a considerable opportunity compared to other agricultural residues. The report also notes that Indonesia, Thailand, Vietnam, Malaysia, and the Philippines collectively account for approximately 90% of the region’s SAF supply capacity.

“This research affirms Southeast Asia’s diverse SAF feedstock availability and immense potential for helping meet global demand for SAF,” says Sharmine Tan, Boeing’s regional sustainability lead for Southeast Asia. “With regional governments and industry working together on sustainability policies and infrastructure investment, scaling local production and building a regional SAF capability provides Southeast Asia an exciting opportunity to help shape the sustainable future of flight while protecting its environment and growing its economy.”

Future supply

The study represents an initial step in understanding the region’s SAF capabilities. Arianna Baldo, RSB’s programme director, underscores the importance of exploring additional sustainable feedstock options.

“Our research considers not only the potential volumes of feedstock available in Southeast Asia, but also their environmental and social sustainability in terms of impacts on deforestation, water, and food security,” says Baldo.

“These results can help guide future SAF feedstock supply, including the exploration of other agricultural and industrial waste materials.”

The methodology used by RSB is grounded in a sustainability standard developed with input from industry, civil society, governments, and the academia, ensuring that the study's findings are both comprehensive and actionable.

A drop in the ocean

The report highlights the potential of unblended or “neat” SAF, which is completely free of fossil fuels and can reduce aviation’s carbon emissions by up to 84% over the fuel’s lifecycle. Despite this, SAF accounted for only 0.2% of global commercial fuel use in 2023, underscoring the need for significant growth in the sector.

Moving forward, the study provides essential insights for stakeholders across the SAF economy, from policymakers to industry players. The focus will now shift to scaling sustainable SAF production, addressing data gaps, and driving investment to support the development of the SAF ecosystem.

This research lays a strong foundation for Southeast Asia to take a leading role in the global transition to a sustainable aviation economy, marking the beginning of a concerted effort to build a greener future for the industry.

However, many industry experts say SAF is still too expensive compared to regular jet fuel, and while the motives and end-game are honourable, without serious government incentives, airlines may not prioritize SAF until it hits price parity with its fossil-based peer.

Conversation
Yee May Leong
Yee May Leong
managing director
Equinix South Asia
- JOINED THE EVENT -
5th ESG Summit
Swinging into action
View Highlights
Conversation
Serena Tan
Serena Tan
senior analyst, responsible investments
Nordea Asset Management
- JOINED THE EVENT -
In-person roundtable
Tech in ESG
View Highlights