How will Asia-Pacific produce 40% of the world's SAF by 2050? [Airbus]

The Asia-Pacific SAF production market is crucial for aviation. Airbus highlights the region's vital role. The region is the world's fastest-growing aviation market. This growth necessitates strong efforts toward decarbonizing air travel. SAF is a critical lever for reducing carbon emissions.

Airbus forecasts the region will produce 40% of global SAF. This high Airbus SAF forecast is set for the year 2050. This positions the region as a future SAF leader.

Government Mandates Drive Demand

Governments are actively implementing new policies. These policies include targets, mandates, and levies. This is spurring Asia-Pacific SAF mandates uptake.

Singapore is a key example of this action. A SAF levy starts on October 1, 2026. This levy applies to all departing flights. It supports a 1% SAF target for that year. The Civil Aviation Authority of Singapore (CAAS) aims for 3-5% by 2030.

Other nations also set clear government SAF targets. Japan targets 10% SAF usage by 2030. This applies to international flights departing Japan. South Korea mandates 1% SAF blending from 2027. Their long-term roadmap aims for 10% by 2035. India aims for 1% SAF use by 2027. This target doubles to 2% in 2028. Australia committed AUD 1.1 billion in production incentives.

Industry Collaboration and Investment

Asia-Pacific SAF production potential is high. The region has abundant agricultural biomass resources. Used cooking oils and waste are also key feedstocks. This makes the region a critical SAF frontier.

Airbus is actively supporting this emergence. They engage in key partnerships and investments. Airbus and Cathay Group launched a co-investment. This partnership is worth up to US$70 million. It will accelerate SAF production scale-up in Asia. Airbus also has MoUs with Pertamina in Indonesia. They are studying domestic SAF feedstock potential. Similar work is underway in China and Thailand.

Challenges to Scaling the Global SAF Supply Chain

Scaling SAF remains a significant industry challenge. The price gap is a major blocker. SAF costs more than conventional jet fuel. Limited SAF supply and policy uncertainty also pose risks. Investment in new infrastructure is critical. This will help develop the global SAF supply chain efficiently. Stable and consistent policy is needed. This will reassure investors and foster development. The industry must tackle feedstock availability. It must also address production scalability issues. Cross-industry collaboration is essential for progress. This will secure a connected future for the region.

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