SINGAPORE, Sept 20 (Askume) – South Korea’s GS Caltex, Japanese trading house Itochu Corp (Itochu, 8001.T) and leading sustainable aviation fuel (SAF) maker Neste (NESTE.HE) have delivered the first batch of fuel to Japan, the group said in a statement on Thursday, adding that the company is for sale.
The fuel is seen as crucial to the aviation industry’s goal of achieving net-zero carbon emissions by 2050, but its adoption is still in its early stages.
Below are SAF’s latest projects and agreements in the Asia-Pacific region.
South Korea
South Korea plans to ensure that all departing international flights use a mix of about 1% SAF from 2027 .
Six South Korean airlines, including flagship carrier Korean Air (003490.KS), have started or plan to blend 1% SAF into fuel on international routes once a week starting this year, the Ministry of Industry and Transport said .
SK Energy announced that its SAF production unit was completed on September 11, and the oil giant will provide the fuel for Korean Air’s passenger flights.
On September 19, GS Caltex, in partnership with trading company Itochu Corporation, delivered its first SAF cargo to Japan, which was blended with Neste’s pure SAF.
Taiwan
The Civil Aviation Administration of China encourages Taiwanese airlines to use up to 5% SAF in their fuel plans starting in 2030, though there is no mandatory requirement yet.
Taiwan’s Civil Aviation Administration said refinery CPC should begin importing SAF in the first half of next year.
Indonesia
Indonesia has stipulated that the biofuel blending ratio in aviation fuel should reach 3% by 2020, but implementation has been delayed.
Indonesia’s state-owned oil company (Pertamina) issued the first SAF spot purchase tender in June , with delivery to be made in August.
Indonesia’s first commercial flight using palm oil-blended jet fuel was scheduled to take place in October 2023 , when a plane flying from West Java to Jakarta made a test flight using the same fuel.
Singapore
Singapore announced in February that it would pursue a 1% SAF target starting in 2026, with plans to increase this to 3%-5% by 2030, based on global growth and wider availability and adoption of SAF.
The Civil Aviation Authority of Singapore plans to levy a fixed amount of SAF tax on fuel purchases based on the current SAF target and projected AF prices.
Singapore Airlines Group (SIAL.SI) ordered 1,000 tonnes of SAF from refiner Neste (NESTE.HE) in May , the first time Singapore has supplied such fuel to an airline at Changi Airport.
China
As of September 2024, China has not yet clarified the responsibilities of the SAF, but the Civil Aviation Administration of China established the country’s first SAF Technology Center in July to focus on standards development and product research .
new zealand
As of September 2024, there is no permanent SAF mission in New Zealand.
Air New Zealand (AIR.NZ) took delivery of 500,000 litres of SAF produced by China’s Ecoceras in Wellington in June, its first delivery to the capital.
Malaysia
Malaysia’s 2023 National Energy Transformation Roadmap plans to implement a 1% SAF blending mandate, but no timetable is provided. The 2050 target will be increased to 47%.
Malaysian state oil company Petronas and Japan’s Idemitsu Kosan Co Ltd (5019.T) signed a preliminary agreement in October 2023 to jointly develop and deliver the SAFред
India
India aims to increase the SAF content in aviation fuel to 1% by 2027 and double it to 2% by 2028.
Indian Oil Corporation (IOC.NS) said in June 2023 that it would build an 80,000 tonne per year SAF plant in Haryana with LanzaJet . The company has partnered with LanzaTech to convert exhaust gases into ethanol and inject fuel.
Japan
Japan’s Ministry of Economy, Trade and Industry said Japan has determined that from 2030, 10% of aviation fuel used by international flights using Japanese airports must be sustainable.
Fuji Oil (5017.T) plans to launch cooperation with Itochu Corporation in May 2023(8001.T) Produces Bio-SAF at the Sodeura Refinery .
Japan’s top airlines All Nippon Airways (ANA) (9202.T) and Japan Airlines (9201.T) have expanded their purchases of SAF, boosting supplies from trading house Itochu Corp and U.S. manufacturer Raven SR.
Other companies exploring SAF production in Japan include Mitsubishi (8058.T) , Boeing (BA.N) and TotalEnergies (TTEF.PA) .
Philippines
Cebu Pacific Airlines (CEB.PS) operated one flight from Singapore to Manila in September 2022 on a 35% SAF blend from Neste. It has entered into a long-term strategic partnership to make SAF more widely available across its fleet.
Australia
Qantas Group (QAN.AX) will launch the Qantas Group in November 2022 in partnership with Australia Post, KPMG Australia, Macquarie Group, the local arm of the Boston Consulting Group, and Woodside EnergyLaunches the Sustainable Aviation Fuel Coalition (SAF Coalition) .
Qantas and Airbus (AIR.PA) said in March 2023 they would jointly invest A$2 million ($1.34 million) to build a biofuel refinery in Queensland, Australia, to convert agricultural by-products into SAF .
Australia has not yet authorised it.
