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Asia's sustainable aviation fuel projects and agreements

(Reuters, 20 Feb 2024) Malaysian Aviation Group (MAG) has signed a sustainable aviation fuel (SAF) offtake agreement with Petronas Dagangan (PETR.KL), opens new tab, as part of efforts to develop the green fuel on a commercial scale in Malaysia, the two firms said on Friday.

SAF, referring to alternative fuels made from renewable sources that are used to power aircraft, is crucial for the aviation sector to reach its net zero goal by 2050, but its adoption remains in a nascent phase.

Following is a look at other SAF projects and agreements in the Asia-Pacific region.

India

Indian Oil Corp (IOC) (IOC.NS), opens new tab aims to set up a plant by 2026 to produce 87,000 tonnes per year (tpy) of SAF, at a cost of more than 15 billion rupees, its director for research and development SSV Ramakumar told Reuters last week.

India plans to mandate the use of 1% SAF for domestic airlines by 2025, oil minister Hardeep Singh Puri said last week, in a bid to cut emissions.

Singapore

Singapore Airlines began a one-year SAF pilot programme in July 2022, working with ExxonMobil (XOM.N), opens new tab and Neste (NESTE.HE), opens new tab. The companies blended 1,000 tonnes of neat SAF with jet fuel and supplied the oil to Singapore Airlines and Scoot flights at Changi Airport.

External link

Reuters, 20 Feb 2024: Asia's sustainable aviation fuel projects and agreements