Sustainable Aviation Fuel (SAF) has emerged as a hot topic in the global aviation industry—not only for its potential to reduce carbon emissions by up to 80%, but also for its enormous economic potential.
Southeast Asia, with its abundant natural resources and growing political support, is positioning itself to become a major global hub for SAF production.
Abundant Resources, Limitless Potential
Southeast Asia’s greatest strength lies in its wealth of feedstock. From rice straw, cassava pulp, and used cooking oil (UCO), to palm oil waste and municipal solid waste, the region holds vast potential to convert these materials into SAF.
According to a joint study by ASEAN, Boeing, CTIF, and GHD—funded by Global Affairs Canada—Southeast Asia could supply up to 12% of the world’s SAF needs by 2050. Countries like Indonesia, the Philippines, Thailand, and Vietnam are even projected to become net exporters of SAF starting in 2040.
Technology for a Greener Sky
SAF production technologies are evolving rapidly. While Hydroprocessed Esters and Fatty Acids (HEFA) remains the dominant method, the region is increasingly shifting toward Fischer-Tropsch (FT) and Alcohol-to-Jet (ATJ) technologies, which are better suited to local feedstock compositions.
Infrastructure is already taking shape. Indonesia, through Pertamina, and Singapore, via Neste, have established SAF production facilities—marking the beginning of a cleaner, more sustainable energy transformation in the region.
A Unique Combination: Supply Meets Demand
Indonesia is known for its abundant feedstock, while Singapore is the region’s largest consumer of jet fuel. This combination creates a balanced production-consumption cycle—a critical foundation for building a resilient SAF ecosystem.
However, challenges remain. The use of palm oil for SAF has raised concerns about deforestation. As a result, attention is shifting toward more sustainable alternatives such as UCO and agricultural waste, which can be sourced without expanding land use.
Concrete Steps from Governments and Industry
Political commitment to Sustainable Aviation Fuel (SAF) in Southeast Asia is becoming increasingly tangible. Singapore will mandate a 1% SAF blend for all departing flights starting in 2026, aiming to reach 3–5% by 2030.
Indonesia has also laid out an ambitious roadmap targeting 30% SAF by 2050. Malaysia and Thailand have developed similar plans to decarbonize their aviation sectors.
On the airline front, Singapore Airlines and Scoot aim to reach 5% SAF usage by 2030. Thai Airways, Garuda Indonesia, Cebu Pacific, and Vietnam Airlines have already completed their first flights using sustainable fuels, partnering with major players like Neste and Shell Aviation.
Beyond the Environment: Economic and Social Gains
SAF offers more than just environmental benefits. It generates employment, enhances workforce skills, and promotes the inclusion of women and marginalized communities in the clean energy supply chain.
Notably, rice straw has been identified as having the lowest carbon intensity among feedstocks, offering a promising opportunity for local farmers to participate directly in the energy transition without altering land use or causing deforestation.
The Future of SAF: Collaboration Is Key
The project “Promoting the Production of Sustainable Aviation Fuels from Agricultural Waste in the ASEAN Region” marks a significant milestone. The region is now entering a critical next phase focused on strengthening regulations, building technical capacity, and mobilizing investment.
With production potential likely to exceed domestic demand, Southeast Asia is well positioned to become a key exporter of SAF to markets such as Japan and South Korea. Realizing this vision will require close collaboration among governments, private sectors, academia, and investors.
