Asia-Pacific airlines look to make up for lost time on SAF momentum
A refurbished refinery in Singapore is about to become one of the world’s biggest sources of sustainable aviation fuel, with capacity to produce up to 1m tons per year. Finnish renewable energy giant Neste, the world’s largest producer of the fuel, has completed a E1.6b expansion of its multi-purpose plant in the Asian city-state, enabling a tenfold boost in SAF output from the previous 100,000 tons. Production will begin within weeks and ramp up in the first half of 2024. For now, however, very little will flow to Asia Pacific airlines. Although the plant is well positioned to supply them, many APAC carriers are waiting for their governments to introduce policies which incentivise SAF production and use by driving up demand while bringing prices down. So most of the Singapore SAF will go to North America or Europe where demand is already high, buoyed by incentives to procure the fuel, escalating SAF-jet fuel blending mandates, or in-house decarbonisation targets of individual airlines. “There’s no shortcut jump to a desired future,” says Sami Jauhiainen, the company’s vice-president Asia Pacific, and acting executive vice-president of renewable aviation. “You have to start with the fundamentals and policies to create demand and de-risk investments.” And in many Asia-Pacific markets, he says, “we are still missing the ignition.” But change is coming across the region, collectively the world’s biggest air transport market, sweeping south and east from the Indian subcontinent, through China, north and south Asia, Australia, New Zealand, and South Pacific island nations. Although APAC countries lag others in embracing SAF, they are increasing their ambitions and committing to or indicating intent to accelerate decarbonisation of their skies. From 2030, Japan will mandate 10% SAF content in aviation fuel. In addition to imports, local production is progressing via multiple pathways, with strong support from the nation’s biggest carriers, Japan Airlines (JAL) and ANA. New Zealand is also getting active. Its recently-defeated government flagged SAF mandates, and partnered with Air New Zealand to commence trials with two US-based companies, waste-to-fuel start-up Fulcrum BioEnergy and alcohol-to-jet producer LanzaJet. Story has more.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-21/general/asia-pacific-airlines-look-to-make-up-for-lost-time-on-saf-momentum
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Asia-Pacific airlines look to make up for lost time on SAF momentum
A refurbished refinery in Singapore is about to become one of the world’s biggest sources of sustainable aviation fuel, with capacity to produce up to 1m tons per year. Finnish renewable energy giant Neste, the world’s largest producer of the fuel, has completed a E1.6b expansion of its multi-purpose plant in the Asian city-state, enabling a tenfold boost in SAF output from the previous 100,000 tons. Production will begin within weeks and ramp up in the first half of 2024. For now, however, very little will flow to Asia Pacific airlines. Although the plant is well positioned to supply them, many APAC carriers are waiting for their governments to introduce policies which incentivise SAF production and use by driving up demand while bringing prices down. So most of the Singapore SAF will go to North America or Europe where demand is already high, buoyed by incentives to procure the fuel, escalating SAF-jet fuel blending mandates, or in-house decarbonisation targets of individual airlines. “There’s no shortcut jump to a desired future,” says Sami Jauhiainen, the company’s vice-president Asia Pacific, and acting executive vice-president of renewable aviation. “You have to start with the fundamentals and policies to create demand and de-risk investments.” And in many Asia-Pacific markets, he says, “we are still missing the ignition.” But change is coming across the region, collectively the world’s biggest air transport market, sweeping south and east from the Indian subcontinent, through China, north and south Asia, Australia, New Zealand, and South Pacific island nations. Although APAC countries lag others in embracing SAF, they are increasing their ambitions and committing to or indicating intent to accelerate decarbonisation of their skies. From 2030, Japan will mandate 10% SAF content in aviation fuel. In addition to imports, local production is progressing via multiple pathways, with strong support from the nation’s biggest carriers, Japan Airlines (JAL) and ANA. New Zealand is also getting active. Its recently-defeated government flagged SAF mandates, and partnered with Air New Zealand to commence trials with two US-based companies, waste-to-fuel start-up Fulcrum BioEnergy and alcohol-to-jet producer LanzaJet. Story has more.<br/>
