Could ASEAN become a global leader in Sustainable Aviation Fuel by 2050?

A new report highlights Southeast Asia's massive potential.

ASEAN SAF production could reach 8.5 million barrels per day by 2050. This data comes from the ASEAN SAF 2050 Outlook report. The region would become a major net SAF exporter.

This scale-up is critical for decarbonizing air travel. The global aviation industry seeks net-zero emissions by 2050. Sustainable Aviation Fuel (SAF) is a key solution for this goal.

Regional Production Potential

The report was developed with support from the ASEAN Secretariat. Boeing served as a knowledge partner for the assessment. The study examined supply and demand across seven member nations. It also looked at key import markets like Japan and South Korea.

Feedstock Abundance

The region has a strong comparative advantage in feedstock. Vietnam, Indonesia, Malaysia, the Philippines, and Thailand hold the most abundant resources. These countries have extensive agricultural and forestry sectors.

Key SAF feedstocks include waste and residues. These resources are used cooking oil, rice waste, and cassava waste. Forestry residues also provide a significant resource base. Indonesia is noted for its substantial palm oil residues.

Market Impact and Demand

This massive 2050 production capacity would meet regional needs. It would also supply growing international demand. The report projects that ASEAN's SAF supply potential significantly outpaces its own forecast demand.

Regional SAF demand will grow sharply by 2050. Demand is projected to rise from 15,000 bpd in 2030. It is expected to exceed 700,000 bpd by the 2050 timeframe. Indonesia, Malaysia, Singapore, and Thailand are expected to be the largest demand centers.

Globally, the region could produce 12% of the world’s required SAF volume. This highlights Southeast Asia's role as a strategic hub.

Challenges and Opportunities

Scaling up sustainable aviation fuel production faces challenges. The current SAF industry is still in its early stages. Global production capacity is less than 1% of total fuel usage.

• Cost: SAF is currently more expensive than fossil jet fuel. Feedstock cost is the largest contributor to this price difference.
• Policy Harmonization: Regional co-operation is necessary for success. Clear guidelines are needed for feedstock cultivation and trade.
• Sustainability: Strict governance is required for feedstock traceability. This is especially true for palm oil-based feedstocks.

IATA estimates SAF must account for 65% of aviation's emissions reduction. The potential of 8.5 million barrels per day shows a path forward. It secures a future for commercial aviation news in the region. Strong policy support is needed to attract necessary investment.

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