In a landmark move for the aviation sector, the Malaysian Aviation Group (MAG) has entered into a significant offtake agreement with Petronas Dagangan, aiming to spearhead the commercial-scale production of sustainable aviation fuel (SAF) in Malaysia. This initiative is part of a broader global effort to integrate SAF—alternative fuels made from renewable sources—into mainstream aviation to achieve the industry’s ambitious net-zero goal by 2050.
The push for SAF comes as the aviation sector seeks innovative solutions to reduce its carbon footprint, with several countries across the Asia-Pacific region launching projects and forming partnerships to explore and expand SAF production and use. Indian Oil Corp (IOC) has announced plans to establish a plant by 2026, expected to produce 87,000 tonnes of SAF annually, in line with India’s mandate for domestic airlines to incorporate 1% SAF by 2025 to reduce emissions.
Singapore has also made strides in the SAF arena with Singapore Airlines initiating a one-year SAF pilot program in collaboration with ExxonMobil and Neste, blending 1,000 tonnes of neat SAF with jet fuel for use at Changi Airport. Additionally, Neste has opened a renewable fuels plant in Singapore with the capacity to produce significant volumes of SAF.
In China, Airbus and the China National Aviation Fuel Group (CNAF) have signed an agreement to boost SAF production and usage, following a successful flight of an A320neo Airbus aircraft using a 5% SAF blend. Japan is not far behind, with Eneos Holdings Inc collaborating with Australian refiner Ampol to explore SAF production, and major Japanese airlines expanding their SAF acquisitions.
The Philippines has witnessed Cebu Pacific operating a flight from Singapore to Manila powered by a 35% SAF blend from Neste, further solidifying the region’s commitment to sustainable aviation practices. Moreover, Australia has launched the Sustainable Aviation Fuel Coalition in collaboration with significant industry partners, supporting a biofuel refinery in Queensland to produce SAF, marking a significant investment in the country’s SAF infrastructure.
These collective efforts across the Asia-Pacific underscore the aviation industry’s dedication to adopting cleaner, more sustainable fuel alternatives. With the sector on a clear trajectory towards reducing its environmental impact, the development and integration of SAF stand as a testament to its commitment to a greener future.
