Southeast Asia Paves the Way for Global Leadership in Sustainable Aviation Fuel Production: Here’s What You Should Know

Southeast Asia is rapidly positioning itself as a global leader in Sustainable Aviation Fuel (SAF) production, aiming to transform its aviation industry and reduce carbon emissions. By tapping into its abundant natural resources, the region is making impressive strides towards a cleaner, more sustainable aviation future.

Why Southeast Asia Is Leading the Charge

Southeast Asia stands out due to its rich natural resources that provide an ideal base for producing SAF. Countries such as Indonesia, Thailand, and Vietnam are home to a variety of materials, including rice straw, cassava pulp, and used cooking oil (UCO), all of which can be transformed into SAF. Palm oil waste and municipal solid waste also present viable feedstocks for SAF production, contributing to the region’s competitive advantage in this growing field.

In fact, a study from ASEAN, Boeing, CTIF, and GHD, funded by Global Affairs Canada, suggests that Southeast Asia could account for up to 12% of the world’s SAF production by 2050. Notably, by 2040, the region’s largest players, including Indonesia and the Philippines, are expected to become net exporters of SAF.

Cutting-Edge SAF Production Technologies

Advancements are being made on all fronts in relation to Sustainable Aviation Fuel SAF production. The most common method used to produce this fuel is Hydroprocessed Esters and Fatty Acids (HEFA). Both Fischer Tropsch (FT) and Alcohol to Jet (ATJ) processes are gaining popularity in the region. These more modern technologies are more aligned with local feedstocks, leading to a SAF production ecosystem that is more diverse and efficient.

Indonesia’s Pertamina and Singapore’s Neste have already set up SAF production facilities, marking the beginning of a regional transformation towards a cleaner aviation future.

Challenges and Opportunities

Although the area’s expanding SAF industry is very promising, it still faces a number of issues. Take palm oil, for instance. It has received a lot of attention as a feedstock because of its possible connections to deforestation. Still, SAF producers are looking into used cooking oil (UCO) and agricultural waste to reduce their carbon footprint.

Despite these challenges, the potential benefits for the region’s economy are enormous. Sustainable Aviation Fuel (SAF) offers more than just environmental benefits; it is set to create thousands of jobs and boost skills development across the region. Local farmers could also benefit, particularly in countries like Vietnam, where rice straw can be utilized to produce SAF, offering a low-carbon intensity feedstock without expanding land use.

Government and Industry Commitments

Governments across Southeast Asia are taking concrete steps to support the SAF sector. Singapore is leading the way with a mandate requiring all departing flights to use a 1% SAF blend starting in 2026, with a target to increase this to 3-5% by 2030.

Indonesia has also outlined an ambitious roadmap that targets 30% SAF usage by 2050, signaling a long-term commitment to aviation decarbonization. Thailand and Malaysia have introduced similar plans to reduce their aviation sector’s carbon footprint. As a result, major airlines in the region are following suit.

Singapore Airlines and Scoot are targeting 5% SAF usage by 2030, while Thai Airways, Garuda Indonesia, Cebu Pacific, and Vietnam Airlines have already completed their inaugural SAF flights, signaling an industry-wide shift towards sustainable aviation.

Economic and Social Impacts of SAF

The advantages of SAF go well beyond environmental benefits. Economically, the expanding SAF industry has the potential to unlock enormous economic value, including the creation of new jobs, as well as the development of skills training programs in the renewable energy and aviation fields. Moreover, SAF is advancing important social goals such as equality of gender and the inclusion of people in the clean energy supply chain from socio-economically disadvantaged groups.

For example, rice straw—one of the most sustainable feedstocks—provides an opportunity for local farmers to participate in the clean energy transition without altering land use or contributing to deforestation. This creates a pathway for inclusive growth, directly benefiting rural communities and fostering regional economic development.

Moving Forward: A Collaborative Approach

Southeast Asia’s shift towards SAF production represents a critical phase in the region’s transition to a greener aviation ecosystem. The “Promoting the Production of Sustainable Aviation Fuels from Agricultural Waste in the ASEAN Region” project is a crucial step in strengthening regional cooperation, developing technical expertise, and mobilizing investments.

With production potentially exceeding domestic demand, Southeast Asia is well positioned to export SAF to other aviation markets, including Japan and South Korea, helping to meet global SAF demand.

The Road Ahead: A Green Aviation Future

With the world looking to SAF as a priority, Southeast Asia is primed to emerge as a major contender in this field. To fully realize these goals, sustained partnership amongst governments, the private sector, and investors will be needed.

Southeast Asia’s rise as a global SAF hub will not only help to reduce carbon emissions but will also create new economic opportunities, benefiting communities across the region and contributing to a more sustainable global aviation industry.

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