Five countries in the Asia-Pacific region are accelerating their shift towards sustainable aviation fuel (SAF) through various new initiatives in Australia, Singapore, Japan, Malaysia, and Thailand. Recently, Singapore Airlines and its low-cost subsidiary, Scoot, announced their first purchase of SAF at Changi International Airport from Neste’s Singapore refinery, which is currently the largest single SAF production facility in the world. Additionally, the Australian government has included support for a low-carbon liquid fuel sector, with a specific focus on SAF, in its 2024 budget. To help Japan achieve its target of 10% SAF usage by 2030, two key partnerships have been established between Malaysian and Japanese firms to supply SAF developed in Malaysia to Japan. Furthermore, a new refinery in Thailand, set to open in the first half of 2025, will utilize used cooking oil from a Japanese company as part of a regional partnership to generate SAF. As part of its Net Zero strategy under the Future Made in Australia Plan, the Australian government has committed to boosting the production of low-carbon liquid fuels, including SAF, in response to strong lobbying from the aviation and energy sectors.
The Australian Renewable Energy Agency will receive A$1.7 billion (around $1.14 billion) over the next decade to assist in commercializing net zero breakthroughs, including low-carbon fuels. Additionally, the government plans to invest A$18.5 million (about $12.4 million) over four years starting in 2024–2025 to expand the national Guarantee of Origin scheme. This scheme is currently being developed to track and verify emissions linked to hydrogen and renewable electricity production in Australia, with the aim of creating a certification system for low-carbon fuels, including SAF and renewable diesel. An extra A$1.5 million (approximately $1 million) will be allocated over two years to evaluate the potential advantages and disadvantages of implementing regulations or other demand-side actions to promote low-carbon liquid fuels. To further encourage domestic development of new fuels, the government will conduct targeted consultations on production incentives. Andrew Parker, Chief Sustainability Officer of the Qantas Group and a leading advocate for establishing a local SAF sector, remarked, “Two years ago in Australia, SAF was an acronym with hardly any interest.” He emphasized, “This funding and the associated policy measures are important initial steps toward decarbonizing aviation here. The most crucial policy tool we have to secure technology and capital, maintain consistency, and remain competitive with our major trading partners is a progressive, universal SAF mandate.”
Singapore Airlines and Scoot will receive the first SAF produced domestically at Changi International Airport by Neste. The Singapore Airlines Group, which includes both carriers, has agreed to purchase 1,000 tonnes of neat SAF, which will be blended and added to the airport’s fuel system in two batches during the second and fourth quarters of 2024. This SAF will be produced from recycled waste and leftover raw materials. Alexander Kueper, Neste’s VP of Renewable Aviation, stated, “This delivery of locally produced SAF to Changi Airport is a milestone in our journey to support the aviation industry and governments in the region in achieving their emissions reduction goals.” Lee Wen Fen, the airline’s Chief Sustainability Officer, highlighted that this agreement is a significant step toward their goal of utilizing 5% SAF in all fuel consumption by 2030. Furthermore, to help offset flight emissions, Singapore Airlines will begin selling 1,000 SAF Book-and-Claim Units (BCUs) to freight forwarders, shippers, and corporate travelers this month. Each BCU will represent one tonne of clean SAF and the corresponding carbon dioxide reduction benefit. In addition, three Japanese companies—two based in Malaysia and one in Thailand—have entered into new SAF agreements. The Malaysian national oil corporation, Petronas, has partnered with Tokyo-based Euglena, a biotechnology firm that converts spent cooking oils and microalgae into renewable fuels, to establish and operate a commercial biofuels production facility in Malaysia.
Euglena has also signed a Memorandum of Understanding with Japan Airport Terminal (JAT), which manages Tokyo’s Haneda Airport, to collaborate on developing a SAF supply chain for the airport. The two organizations plan to commercialize and distribute the fuel to aircraft. According to these firms, if the Japanese government’s target of 10% SAF usage by 2030 is applied to Haneda Airport’s total jet fuel consumption in 2022, the airport would require around 220 million liters of SAF annually.
