Southeast Asia a potential hub for sustainable aviation fuel

Southeast Asia’s expansive agricultural feedstocks may help it become a global hub for sustainable aviation fuel (SAF), according to a joint Canadian–ASEAN research project.

Carried out by the ASEAN Secretariat, GHD, Boeing and Canadian Trade and Investment Facility for Development (CTIF), funded by Global Affairs Canada (GAC), and implemented by Cowater International and the Institute of Public Administrators of Canada (IPAC), the project is said to mark a significant step towards a more sustainable aviation future in Southeast Asia.

SAF is a renewable or waste-derived aviation fuel that meets sustainability criteria, reduces greenhouse gas emissions, and is compatible with existing aircraft and infrastructure, as a ‘drop-in’ fuel. Aviation engines can currently run on a mix of 50% SAF and 50% conventional aviation fuel, but the industry is working towards a 100% SAF mix.

SAF is said to lower carbon emissions over the fuel’s life cycle by up to 80%, depending on the feedstock, with the potential to reduce even more in the future. It can be made from a wide variety of sources, such as cover crops and other inedible plants, agricultural and forestry waste, non-recyclable municipal waste, industrial plant off-gassing and other feedstocks.

As part of the project, a techno-economic assessment was conducted in Cambodia, Indonesia, Lao PDR, Malaysia, Philippines, Thailand and Vietnam, focusing on feedstock availability, technology pathways, carbon intensity, logistics, environmental and social aspects, institutional frameworks and financial assessment.

With improvements in economic feasibility, SAF production in ASEAN could surpass regional demand, enabling exports both within and beyond ASEAN. The expansion of SAF feedstock supply is expected to stem from enhanced farming practices and large-scale biomass utilisation rather than land expansion.

The report emphasised that mechanisation, improved irrigation and R&D in crop optimisation could boost feedstock availability without increasing deforestation or land conversion.

Satvinder Singh, Deputy Secretary-General for the ASEAN Economic Community, commended the initiative, stating, “This initiative marks a significant step in advancing ASEAN’s commitment to sustainable aviation. By leveraging regional resources and innovation, we are not only addressing environmental challenges but also driving economic growth and enhancing energy security.

“The successful completion of this project underscores ASEAN’s capacity for effective collaboration in tackling climate challenges while creating new opportunities for our communities.”

Beyond environmental benefits, the project highlighted SAF’s role in fostering gender equality and economic development, with the sector providing opportunities for job creation, upskilling and workforce diversification, with an emphasis on inclusive participation of women and marginalised communities.

Sharmine Tan, Boeing’s Regional Sustainability Lead for Southeast Asia, said, “SAF is the biggest opportunity to cut aviation emissions over the next 30 years. This research highlights Southeast Asia’s rich SAF feedstock potential, positioning the region as a key player in meeting global SAF demand.

“To unlock this potential, governments and industry must act decisively, harmonise sustainability policies, invest in infrastructure, and scale local production to build a robust regional SAF ecosystem. Southeast Asia has a unique opportunity to lead sustainable aviation while driving economic growth and environmental stewardship.”

Sachin Narang, GHD’s Executive Advisor – Energy and Infrastructure, said, “The successful completion of this project represents a major milestone in ASEAN’s journey toward sustainable aviation. The insights gained will serve as a foundation for future SAF initiatives, investments and policy development across the region.”

The ASEAN Secretariat, together with its partners, invites continued collaboration with governments, industry leaders, research institutions and investors to support the regional transition to SAF.

Building on the findings of this project, the next phase will focus on areas such as enabling policy development, strengthening technical capacity and mobilising investment to support SAF deployment, among other collaborative efforts.

Image credit: iStock.com/Veit Störmer