Factbox: Asia's sustainable aviation fuel projects and agreements
26/06/2024 12:34
(Updates factbox with details for Taiwan, Singapore, Indonesia,
China, New Zealand)
SINGAPORE, June 26 (Reuters) -
Taiwan plans to start importing sustainable aviation fuel
(SAF) to Taoyuan and Songshan airports via state-owned refiner
CPC Corp in the first half of 2025, its civil aviation
administration said in a statement.
Taiwan's announcement is the latest move by an Asian
country to use SAF, made from renewable sources to power
aircraft.
The fuel is seen as 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 the latest SAF projects and
agreements in the Asia-Pacific region.
TAIWAN
Taiwan's airlines are encouraged by its civil aviation
administration to use up to 5% of SAF in its fuel programme
starting in 2030, although there is no mandate yet.
CPC should be importing SAF in the first half of next
year, Taiwan's civil aviation administration said.
INDONESIA
Indonesia has mandated 3% biofuel blending by 2020 for
jet fuel, but implementation has been delayed.
Indonesia's state-owned Pertamina has
issued
its first spot purchase tender for SAF, to be delivered in
August.
Indonesia
flew
its first commercial flight using palm oil-blended jet fuel
in October 2023, after running a test flight with the same fuel
on an aircraft flying from West Java to Jakarta.
SINGAPORE
Singapore announced in February 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 an SAF levy for the purchase of the fuel to be set at
a fixed amount, based on the SAF target and projected SAF price
at that time.
Singapore Airlines Group SIAL.SI
ordered
1,000 metric tons of SAF from refiner Neste NESTE.HE , the
first supply of such fuel in the city-state to airlines at
Changi Airport.
CHINA
There is no set SAF mandate in China as of June 2024, but
Beijing is expected this year to unveil its policy on SAF use
for 2030, which, could spur billions of dollars of investment,
industry executives told Reuters. urn:newsml:reuters.com:*:nL1N3HJ0JU
NEW ZEALAND
There is no set SAF mandate in New Zealand as of June 2024.
Air New Zealand AIR.NZ received a 500,000-litre
delivery of SAF manufactured by EcoCeres in China in Wellington
in June, its first delivery to the capital city.
MALAYSIA
Malaysia's 2023 National Energy Transition Roadmap stated
plans to install a 1% SAF blending mandate without providing a
timeline. The target will be increased to 47% by 2050.
Malaysian state oil company Petronas and Japan's Idemitsu
Kosan Co 5019.T , signed a preliminary agreement to collaborate
on development and distribution of SAF in October 2023.
INDIA
India aims to have 1% SAF in aviation fuel by 2027, doubling
to 2% in 2028. The SAF targets will initially apply to
international flights.
Indian Oil Corp IOC.NS will set up an 80,000-metric-ton
per year SAF plant with LanzaJet in Haryana. The company has a
tie-up with LanzaTech for converting waste gas to ethanol and
into jet fuel.
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
has said.
Fuji Oil Co Ltd 5017.T began planning production of
bio-SAF at Sodegaura Refinery with Itochu Corp 8001.T in May
2023.
Japan's top airlines, All Nippon Airways (ANA) 9202.T and
Japan Airlines (JAL) 9201.T , 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 8058.T , Boeing BA.N , and TotalEnergies SE
TTEF.PA .
PHILIPPINES
Cebu Pacific CEB.PS 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, but the country does not have a mandate yet.
AUSTRALIA
Qantas Group QAN.AX 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 in November 2022.
Qantas and Airbus SE AIR.PA will jointly invest A$2
million ($1.34 million) in a biofuel refinery being set up in
Australia's Queensland state to convert agricultural by-products
into SAF.
Australia does not have a mandate yet.
(Reporting by Cassandra Yap，Trixie Yap and Colleen Howe;
Editing by Kevin Liffey)
((mailto:cassandra.yap@thomsonreuters.com;))