Factbox: Asia's sustainable aviation fuel projects and agreements
20/09/2024 06:53
(Recasts, updates factbox details for South Korea)
SINGAPORE, Sept 20 (Reuters) - South Korea's GS Caltex,
together with Japanese trading house Itochu 8001.T and major
sustainable aviation fuel (SAF) producer Neste NESTE.HE , has
delivered its first batch of the fuel to Japan for sale, Neste
said in statement on Thursday.
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.
SOUTH KOREA
South Korea aims to ensure all departing international
flights use a mix of about 1% SAF from 2027.
Six South Korean airlines, including flag carrier Korean
Air 003490.KS , have begun, or plan, to mix 1% of SAF in the
fuel for a single international route once a week starting this
year, its industry and transport ministries said.
SK Energy announced its completion of its SAF production
unit on Sept. 11, with the oil major to supply the fuel to
Korean Air passenger flights.
GS Caltex supplied its first SAF cargo, blended with
neat SAF from Neste, to Japan in partnership with trading house
Itochu on Sept. 19.
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.
Refiner 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 in June 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 plans to introduce
a 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 in May 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 September 2024,
but the Civil Aviation Authority of China launched the country's
first technical centre for SAF that focuses on standard setting
and product research in July.
NEW ZEALAND
There is no set SAF mandate in New Zealand as of September
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 said in June 2023 it would 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 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 9201.T , have expanded their SAF purchases by
adding supplies from trading house Itochu and U.S. producer
Raven SR.
Other companies exploring SAF production in Japan include
Mitsubishi 8058.T , Boeing BA.N , and TotalEnergies 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 AIR.PA said in March 2023 they would
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 and Jamie Freed)
((mailto:cassandra.yap@thomsonreuters.com;))