aviation

Environmental Flights In Asia Face Challenges Due To Lack Of Mandatory Biofuels

The price of sustainable aviation fuel (SAF) is expected to decrease as supply from Asian producers surpasses regional demand. An industry source interviewed by Reuters indicated that weak demand and persistently high production costs could affect the production plans for SAF in Asia. Nevertheless, the abundant supply of SAF from Asian manufacturers may provide relief to airlines that are struggling with the high costs of this sustainable fuel. At least five SAF projects outside of China are either operational or set to commence production this year, with plans to export to regional markets and Europe. Unlike Europe, where flights departing from EU and UK airports are now required to use 2% SAF in their fuel tanks, the mandates for SAF usage in Asia remain minimal. The implementation of renewable fuel requirements is expected to begin in several countries by the end of this decade. 

Low consumption rates and a lack of policy guidance have led to delays in several SAF projects in China. "Asian airlines are still primarily focused on increasing flight numbers, and SAF is not a top priority due to its higher costs compared to conventional fuel, which impacts airline profitability," stated Shukor Yusof, founder of the aviation consultancy Endau Analytics, as reported by Reuters. 

In 2023, the aviation industry accounted for 2.5% of global carbon emissions. SAF, produced from used cooking oil and biomass, is touted as a potential solution for reducing emissions in the aviation sector. However, the higher production costs of SAF compared to conventional fuels, along with its contribution to total fuel production being only 3%, pose challenges for its adoption, according to the International Air Transport Association (IATA). 

Tag: Aviation Industry Mandatory Biofuels SAF