SE Asia can become global SAF hub using agricultural, forestry residues: Study

Southeast Asia has the potential to emerge as a global hub for sustainable aviation fuel, leveraging its abundant agricultural waste and forestry residues, according to a joint research project released April 11 by Canadian and Association of Southeast Asian Nations institutions.

The study found that Indonesia, Malaysia, the Philippines, Thailand and Vietnam hold strong feedstock potential to become net exporters of SAF by 2040. Countries such as Japan and South Korea are expected to drive regional import demand.

The project was a collaboration with the ASEAN Secretariat, Boeing, consulting firm GHD, the Canadian Trade and Investment Facility for Development and other institutional partners.

Funded by Global Affairs Canada and implemented by Cowater International and the Institute of Public Administrators of Canada, the study outlines how agricultural waste feedstocks such as rice straw, cassava residues and forestry waste can position countries such as Indonesia, Malaysia, the Philippines, Thailand and Vietnam to become leading SAF producers and even net exporters by 2040.

The project conducted a techno-economic assessment across Cambodia, Indonesia, Laos, Malaysia, the Philippines, Thailand and Vietnam and evaluated feedstock availability, technology pathways, carbon intensity, logistics, environmental and social implications, policy frameworks and investment considerations.

One of the most significant findings is that the expansion of SAF feedstock supply is likely to stem from enhanced farming practices, mechanization, irrigation and large-scale biomass utilization, rather than from increased land use.

This approach not only helps avoid deforestation and food security risks but also contributes to the sustainability of the SAF value chain.

In particular, rice straw emerged as a low-carbon intensity feedstock across multiple Southeast Asian countries, reinforcing its attractiveness as a foundational resource for SAF development.

The report also emphasizes the growing technological readiness of several SAF pathways. Among the assessed technology options, hydroprocessed esters and fatty acids ranked highest based on financial, environmental, technical and operational criteria.

However, HEFA relies on oils and fats, which may limit its compatibility with some feedstock types prevalent in the region. For agricultural and forestry residues, the alcohol-to-jet pathway ranked highest, reinforcing the importance of aligning technology choices with available biomass types.

Sharmine Tan, Boeing's regional sustainability lead for Southeast Asia, said SAF represents the biggest opportunity to reduce aviation emissions over the next three decades.

"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 harmonizing sustainability policies, investing in infrastructure, and scaling local production to build a robust regional SAF ecosystem," she said.

Several countries in the region are already taking concrete steps toward SAF deployment. Indonesia has outlined ambitious blending targets aiming for 2.5% SAF by 2030 and 30% by 2050 and has equipped its infrastructure for SAF imports and exports.

Thailand has initiated commercial SAF production and set blending targets of up to 60% by 2050. Malaysia and the Philippines have SAF development programs underway, with Malaysia planning for a 47% SAF blending rate by 2050.

SAF incorporation has already been initiated by national carriers in Vietnam, the Philippines and Thailand.

The study offers a comprehensive road map for government action. This includes the creation of national biomass inventory registers, the development of carbon accounting systems aligned with international best practices, and the establishment of SAF-specific infrastructure such as bioenergy precincts and logistics corridors.

The report further suggests mechanisms for derisking investments, such as government-backed loan guarantees and grants to support project-specific feedstock aggregation and infrastructure development.

The ASEAN Secretariat and its partners are now calling for expanded collaboration with governments, industry leaders, research institutions and investors.

The next phase of the initiative will focus on enabling policy frameworks, strengthening technical capacity, and mobilizing investment to ensure Southeast Asia's transition to a SAF-powered aviation industry.

With proximity among member states, existing oil infrastructure, and diverse feedstock availability, Southeast Asia is well positioned to become a key contributor to global SAF supply, supporting both regional energy security and global climate goals, highlighted the report.

Platts, part of S&P Global Commodity Insights, assessed Asia SAF-Jet Fuel Spread at $1265.02/mt on April 10, down $32.07/mt day over day.