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Hidden in an industrial setting in Singapore’s Uptown district is the world’s largest refinery for sustainable aviation fuels (SAF), where organic waste such as used cooking oil and animal fats are turned into energy for use in airplanes.
Built by the Finnish fuel producer it in 2010, the facility underwent a $1.9 billion expansion in 2019. Reopening in 2023, it is now can produce up to one million tons of SAF annually. Most of Singapore’s sustainable jet fuel is exported to Australia and Europe, but Neste executive Mario Mifsud says Asia is the “next big frontier” for SAF.
“Asian governments are now making regulatory commitments to SAF,” Mifsud, who oversees the company’s sales and marketing of renewable fuels for the EMEA and APAC regions, said. luck. “We’ve seen it in Europe—one or two countries have started, and other countries will follow.”
In November, Singapore mandated that, by 2026, SAF account for 1% of all jet fuel used at its Changi and Seletar airports, with more planned raise the quota by 5% by 2030, in line with the goal of the International Civil Aviation Organization (ICAO) to have net-zero carbon dioxide emissions by 2050.
“The 1% target doesn’t seem like a big goal, but it starts the ball rolling,” Mifsud explained. “Neighboring countries will watch and follow.”
Thailand also plans to unveil national SAF standards this year. Last July, national carrier Bangkok Air began using a 1% SAF blend in July, cutting about 128 kilograms of carbon emissions per flight. (On average, a flight from London to New York generates about 493 kilograms of carbon per passenger, according to the German nonprofit Atmosfair.)
Last May, it became South Korea one of the first countries in Asia to mandate SAF on international flights, with the decision set to take effect in 2027. The country aims to increase the proportion of SAF to between 7% and 10% by 2035.
Around the world, Europe is leading the adoption of SAFwith the 2025 ReFuelEU regional policy mandating a 2% SAF blend. (The EU has a 70% SAF mandate starting in 2050.)
The SAF is one way the carbon-intensive aviation industry—responsible for 2.5% of global emissions—is trying to go green. Now, with governments getting serious about pushing airlines to use sustainable fuel, the industry may finally start to take off.
Increase production
Demand for SAF in Southeast Asia is expected to grow from 15,000 barrels per day in 2030 to more than 700,000 barrels per day in 2025, according to ASEAN SAF 2050 Outlook report. Production is also likely to increase, with ASEAN projecting daily production of up to 8.5 million barrels of SAF per day.
On January 26, Hong Kong-based energy company EcoCeres opened Malaysia’s first commercial SAF production facility in the city of Johor Bahru, just across the border from Singapore. It can produce up to 420,000 metric tons of SAF annually.
During the launch of the Tanjung Langsat plant of EcoCeres, Noraini binti Ahmad, the minister of plantations and commodities of Malaysia, said that Malaysia will soon have its own SAF targets.
“Under the National Energy Transition Roadmapan initial SAF blending target of 1% is important to create demand and support market growth,” said Noriaini. “This plan reflects our strategy to position the Malaysian commodity sector as a responsible player in the global energy transition, and by using certified waste-based biomass, we add value to our resources, strengthen supply chains and support higher value downstream activities.”
The Johor plant is EcoCeres’ second, after its factory in China’s Jiangsu province, which produces 350,000 metric tons of SAF annually.
Matti Lievonen, the CEO of EcoCeres, said that the Malaysian plant marks the company’s first step in expanding globally. “This area in Johor is very good, because you have feedstocks from Malaysia and other Southeast Asian countries, a very good sea to pop out and a strong Malaysian workforce.”
Scaling up
Aviation accounts for about 2.5% of global carbon emissions, but the ways to decarbonize the sector are still in the development stage and are not feasible for long-haul flights.
Electric aviation, for example, can only operate on short trips, as it is limited by the energy storage capacity of batteries. (Jet fuel holds 30 times more energy per kilogram than the most advanced lithium-ion batteries.)
The lack of feedstock also hampers the production of SAF. The International Energy Agency urges industry players to explore alternative sources of feedstock other than used oil and animal fat.
“Renewable fuels are very much in the start-up phase,” Neste’s Mifsud said. “If you’re in oil and gas, you drill a well and get your oil – it’s that simple.
This story was originally featured on Fortune.com
