A high-level trans-Pacific research programme has concluded that abundant supplies of agricultural feedstock across multiple countries in Southeast Asia could facilitate the region’s emergence as a key global supplier of sustainable aviation fuels. The study was undertaken by the Association of Southeast Asian Nations (ASEAN), the Canadian Trade and Investment Facility for Development (CTIF), Boeing and GHD, a global network of engineering, construction and environmental professionals focused on advancing sustainability and resilience. It was funded by Global Affairs Canada, the government department with responsibilities including trade and international development. A technical-economic assessment was performed in seven countries, examining feedstock availability, technology pathways, carbon intensity, logistics, environmental and social elements, institutional frameworks and financial assessment.
“This initiative marks a significant step in advancing ASEAN’s commitment to sustainable aviation,” said Satvinder Singh, Deputy Secretary-General for the ASEAN Economic Community. “By leveraging regional resources and innovation, we are not only addressing environmental challenges but also driving economic growth and enhancing energy security.”
The report on the project, ‘Promoting the Production of Sustainable Aviation Fuels for Agricultural Waste in the ASEAN Region,’ assessed SAF feedstock and production potential in Cambodia, Indonesia, Lao People’s Democratic Republic (PDR), Malaysia, the Philippines, Thailand and Vietnam.
It found that by 2040, Indonesia, the Philippines, Thailand and Vietnam could become net exporters of SAF and identified Japan and South Korea as key regional importers of the fuel.
It also acknowledged that Singapore, Japan and Korea may have their own SAF refineries (which Singapore already does, operated by Neste) or plans for such facilities.
The project focused on developing feedstock supplies without increasing deforestation or changing land use, both practices which have been prominent in parts of the region.
With improvements in economic feasibility, said the report, SAF production in ASEAN nations could surpass regional demand, enabling exports both within and beyond ASEAN, including to nearby markets including Australia, New Zealand, Melanesia, Micronesia and Polynesia.
“The expansion of feedstock supply is expected to stem from enhanced farming practices and large-scale biomass utilisation rather than land expansion,” said the report, which focused on mechanisation, better irrigation and research and development in crop optimisation.
It said agricultural waste including rice, cassava and forestry residues were key regional feedstocks for the new fuels and identified waste feedstock rice straw as the ingredient with the lowest carbon intensity score across multiple Southeast Asian nations.
The report also highlighted significant socioeconomic benefits of ASEAN SAF production, including job creation, upskilling and workforce diversification “with a strong emphasis on inclusive participation of women and marginalised communities.”
Two scenarios were considered in the report. The first assumed that all countries assessed in the project were progressing towards a 2040 SAF blend of 20%, a target created by researchers from the average target blend mandate set by countries that have committed to SAF adoption goals.
The second scenario corrected consumption estimates to align with different target years for SAF adoption which the report said had been stated independently by Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea and Thailand. This scenario also assumed zero domestic consumption of SAF in Cambodia, Lao PDR and Vietnam, none of which have yet declared a SAF mandate.
Canada’s Ambassador to ASEAN, Vicky Singmin, said the support of the Canadian Trade and Investment Facility had helped enable the ASEAN Secretariat to ascertain the reliability of local feedstock supplies for SAF production within the region.
The project was implemented by Cowater International, a Canada-based consultancy specialising in global development projects to advance socio-economic objectives, and the Institute of Public Administrators of Canada.
“SAF is the biggest opportunity to cut aviation emissions over the next 30 years,” added Sharmine Tan, Boeing’s sustainability lead for the Southeast Asia region. “Southeast Asia has a unique opportunity to lead sustainable aviation while driving economic growth and environmental stewardship.
“This research highlights Southeast Asia’s rich SAF feedstock potential, positioning the region as a key player in meeting global SAF demand,” said Tan. “To unlock this potential, governments and industry must act decisively, harmonise sustainability policies, invest in infrastructure, and scale local production to build a robust regional SAF ecosystem.”
The completion of the ASEAN-Canada project represented a major milestone for sustainable aviation in ASEAN countries, said Sachin Narang, GHD’s Executive Advisor, Energy and Infrastructure. “The insights gained will serve as a foundation for future SAF initiatives, investments and policy developments across the region.”
The ASEAN Secretariat and its partners are now progressing the next phase of their transition to SAF, including enabling policy development, strengthening technical capacity and seeking funding support, inviting greater collaboration between governments, industry leaders, research institutions and investors.
