Asia's aviation industry is intensifying efforts to scale up sustainable aviation fuel (SAF) production capacity, but during the "Asian SAF Innovation" panel discussion at the 2025 Asia Pacific Petroleum Conference (APPEC) held in Singapore on September 10, participants warned that fragmented policy support, infrastructure gaps, and rising feedstock costs could constrain SAF industry growth in the coming years.

Gabriel Ho, founder and chief sustainability officer of the Asian Sustainable Fuels Association, stated during the conference that Asian countries need to develop customized roadmaps that consider regional coordination to position Asia as a major global SAF hub. He noted: "Asia has enormous potential, but policies need to shift from 'reactive responses' to 'proactive planning.' If we can establish biofuel industrial clusters with scale effects, technology, capital, and talent will naturally achieve scaled aggregation, enabling Asia to become a globally competitive SAF export region."

Currently, Singapore is viewed as Asia's SAF policy benchmark, with its passenger fuel surcharge mechanism providing predictable demand signals for SAF producers. India, Malaysia, Indonesia, and South Korea are also expected to implement mandatory SAF blending quotas starting in 2027, which will provide clear demand expectations and attract new project investments. Natasha Yang, SAF supply assurance manager at Cathay Pacific, cautioned that most Asian markets have yet to establish SAF blending targets beyond 2030. Europe has already outlined a clear path for gradually increasing SAF blending ratios through 2040, and Asia needs similar long-term planning to attract investment and reduce technology development risks.

Regarding feedstock and logistics, supply chain traceability and infrastructure gaps have become major obstacles to SAF development. Participants noted that Asia's abundant agricultural waste and underutilized plantation resources could support large-scale SAF production, but feedstock supply chain traceability and smallholder participation remain key challenges. Natasha Yang explained: "Certification systems and industry education are crucial to ensure feedstock meets verification standards under frameworks like the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), enabling commercial value transformation."

Additionally, regional logistics systems face significant bottlenecks. Yang pointed out: "Asia lacks the comprehensive pipeline, barge, and rail transport networks found in Europe and North America. Without increased investment to bring production facilities closer to feedstock sources and demand centers, rising logistics costs will undermine SAF's market competitiveness as capacity expands."

Consistent with global trends, Hydrotreated Esters and Fatty Acids (HEFA) technology remains the mainstream pathway for SAF production in Asia, but Alcohol-to-Jet (ATJ) and electronic fuels (e-fuels) are rapidly emerging. Over the next few years, China, Malaysia, and Thailand will establish new SAF production facilities, with Thailand potentially leveraging its excess ethanol capacity to develop ATJ technology, while Japan plans to advance multiple SAF pilot projects from 2027 to 2029.

Gabriel Ho noted: "HEFA is a mature technology, but the next wave of industry transformation will focus on integrating biofuels with renewable energy, producing syngas from biomass or captured carbon dioxide, then combining it with green hydrogen to produce SAF, which could be Asia's long-term SAF development direction." Dependence on HEFA technology makes the industry highly sensitive to limited feedstock supplies, prompting multiple countries to actively explore alternative technology pathways. However, price remains the core obstacle: HEFA-based SAF is already significantly more expensive than conventional jet fuel, while SAF produced through other technologies costs even more. Platts data from September 10 showed the price differential between Asian SAF and conventional jet fuel at $1,300.90 per ton, while electronic SAF (eSAF) costs could exceed $8,000 per ton.

Participants unanimously agreed that Asia needs to accelerate improvements in policy, infrastructure, and financing systems to meet SAF market demand. Gabriel Ho emphasized: "This decade is crucial. If clear incentive policies and mandatory quota frameworks are not implemented, Asia may miss the opportunity to dominate the global SAF market."