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to record a massive increase. Governments SAF production. ANA, Toshiba, Japanese oil major Idemitsu Kosan
in the region also have a lot of catching up and three other companies have joined hands to research SAF
to do with those in Europe and the U.S when development. In May, Malaysian Aviation Group (MAG) signed
it comes to setting sustainability goals. With a SAF offtake agreement with Petronas Dagangan (PETR.KL) as
as much as 40 percent of global SAF demand part of efforts to produce the green fuel on a commercial scale in
likely to come from the region by 2050, there Malaysia. Indian Oil Corp (IOC) plans to set up a plant by 2026 to
is also a critical need to ensure that supply produce 87,000 tonnes per year of SAF for Indian carriers. Airbus
meets demand. and the China National Aviation Fuel Group (CNAF) intend to
work together to increase production and use of SAF. In Japan,
Eneos Holdings and Australian refiner Ampol are joining hands
Regional Disparity to study the feasibility of jointly producing up to 500 million
SAF production facilities remain concentrated liters of SAF and renewable diesel per year. In November last
in Europe and the U.S., but of late, there is year, Australia’s Qantas Group set up an SAF Coalition in collab-
activity happening in the Asia Pacific on that oration with Australia Post, KPMG Australia, Macquarie Group,
front. In May this year, renewable fuels pro- and Woodside Energy. Qantas and Airbus are jointly investing
ducer Neste officially opened its expanded US$1.34 million in a biofuel refinery being set up in Queensland
refinery in Singapore, increasing annual pro- that is expected to produce up to 100 million liters of SAF a year
duction capacity to 2.6 million tons, of which by converting agricultural by-products into SAF.
up to 1 million will be sustainable aviation
fuel. In addition to increasing capacity, the
company has established an integrated SAF Japan in the Lead
supply chain to enable blended fuel to be In September 2021, the U.S. announced a SAF Grand Challenge,
delivered to airlines at Singapore’s Changi exhorting the industry to supply 3 billion gallons of SAF per year
International Airport. According to Jonathan by 2030 and 100 percent of expected domestic commercial jet
Wood, Vice President Commercial and fuel use by 2050. The European Union’s new ReFuelEU law stip-
Technical Management at the Renewable ulates that, from 2025, all flights departing from an EU airport

Aviation business unit at Neste, the company, will be obliged to use a minimum share of SAF starting at 2 per
which is currently investing in its Rotterdam cent in 2025. In 2030, the percentage will rise to 6 per cent, and
facility, will increase its production capability gradually to 70 per cent by 2050.
to 1.5 million tons per annum in the beginning
of 2024 and 2.2 million tons by 2026. In the Asia Pacific, Japan is showing the way. Earlier this
year, Japan’s Ministry of Economy, Trade, and Industry (METI)
Other countries and companies in the region announced that the government would make 10 per cent SAF
are stepping up as well. In Japan, Mitsubishi use mandatory for international flights at Japanese airports from
Corp, Boeing and TotalEnergies are exploring 2030. The country’s Ministry of Land, Infrastructure, Transport

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