Asia-Pacific Poised to Become Key Engine for SAF Production

Boeing: Asia Needs Clear Policies for SAF

Recently, Ryan Fossett, Boeing’s vice president for environmental sustainability, stated that as global aviation intensifies decarbonization efforts, the Asia-Pacific region is not only a growth hotspot for future air travel but also has the potential to become a key engine for sustainable aviation fuel (SAF) production. However, this vision depends on the right policies and effective financing mechanisms. Fossett noted: "Aviation growth rates in parts of the Asia-Pacific region reach 7%, far exceeding the global average. But without a reliable decarbonization pathway, such growth will be unsustainable. SAF is the most viable near-term solution. Boeing's role is to ensure aircraft don't become a bottleneck while helping align supply, demand, policy, and application."

Countries Need Stronger Policy Coordination

Fossett explained that Boeing has supported the development of multiple SAF roadmaps across the Asia-Pacific, including collaborations with the Roundtable on Sustainable Biomaterials (RSB) in Southeast Asia and Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO), helping policymakers understand feedstock potential and laying the foundation for investment. He emphasized that Asia holds significant technical potential for SAF and possesses abundant agricultural waste such as rice husks and palm oil residues, but supportive policy environments remain inconsistent.

Fossett specifically highlighted Singapore’s recently introduced SAF levy model, calling it a promising approach. This model, set to launch in 2026, charges a fixed fee per air passenger, with proceeds used to centrally procure SAF, helping airlines mitigate price volatility risks in the SAF market. Fossett said: "Transparency and simplicity are strengths of Singapore’s SAF levy model. It enables fairer cost distribution and shields against SAF price fluctuations—exactly what many regional SAF markets currently lack."

Commercial aircraft are already certified to use fuel blends with up to 50% SAF, and Boeing has committed that all its new aircraft models will be capable of flying on 100% SAF by 2030. The company is working with engine manufacturers and Airbus through the International Aerospace Environmental Group (IAEG) to harmonize standards and ensure consistent performance.

Financing Remains a Bottleneck

Besides policy, financing remains a major hurdle for Asian SAF developers, as many companies still face complex certification and off-take risks. Financiers often perceive uncertain end-use demand for SAF, making them reluctant to fund SAF developers.

To address this, Boeing has hosted SAF financing roundtables across the Asia-Pacific, bringing together banks, project developers, and government stakeholders to unlock capital flows. Fossett cited Boeing’s investment in Australia’s Wagners Sustainable Fuels as a successful example. He said: "We’re actively working to reduce risks for early SAF participants. If Boeing can provide support, we can attract more capital into the SAF market."

Avoiding Market Distortions

Boeing estimates that thanks to abundant feedstocks, 60–70% of Asia-Pacific aviation fuel demand could be met by SAF by 2050. However, fragmented policy design and sustainability certification are already causing market distortions.

Fossett warned: "Fragmentation in SAF policy and sustainability certification carries a risk: SAF produced in one country might be penalized when supplied to another due to incompatible life cycle assessment (LCA) frameworks or high certification costs. Harmonizing standards like CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) and establishing a global 'book and claim' system is critical." He advised new Asian SAF producers to pursue certifications such as RSB or ISCC (International Sustainability and Carbon Certification) to ensure their SAF meets CORSIA sustainability criteria and gains global recognition.

Fossett also mentioned that Boeing is investing in next-generation technologies, including hydrogen and electric aircraft. However, he stressed that due to technological maturity and scalability, SAF will remain the primary route for aviation decarbonization over the coming decades. "SAF is a 'must-have' in our strategy," Fossett said. "Hydrogen and electric aircraft are 'nice-to-haves'—they need time to scale, especially for large aircraft."