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Asia’s green jet fuel ambitions exceed demand, heralding exports
Asia’s ability to supply sustainable aviation fuel will outpace regional demand this year and next as more production comes online, increasing exports and potentially lowering prices for the fuel, oil executives and analysts said.
Planned SAF production could take a hit if regional demand remains tepid and prices fall below production costs, industry sources say, though Asia’s increased capacity is good news for airlines that have been complaining SAF is too expensive and hard to source.
At least five SAF projects in Asia, outside of China, have started up or are earmarked to start production this year, targeting exports regionally and to Europe. Unlike in Europe, where flights departing EU and UK airports must now use 2 per cent SAF in their tanks, Asia’s mandated demand remains low with compulsory use of the renewable fuel in some nations to start only later this decade.
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