Gov’t Support Seen Needed to Develop Sustainable Jet Fuel

Aviation Fuel (Sustainable Aviation Fuel (SAF)), BioRefineries/Renewable Fuel Production, Business News/Analysis, Funding/Financing/Investing, Opinions, Philippines, Policy

January 19, 2023

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by Arjay L. Balinbin (Business World) The government must send strong signals that it supports the development of sustainable aviation fuel (SAF) in the country through tax incentives and other policies, as a crucial step toward meeting the industry’s target to cut carbon emissions from air travel by 2050, airlines said.

“Government incentives will definitely help as they will accelerate [SAF] development and adaptation in the Philippines,” Cebu Pacific Chief Strategy Officer Alex B. Reyes told BusinessWorld in an e-mailed reply to questions recently.

“This can be in the form of tax exemptions on the use of SAF or government funding to help develop local production of SAF in the Philippines,” he added.

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Cebu Pacific said it has been pushing for more investments in SAF biorefineries in the Asia-Pacific region.

“Strategic partnerships and off-take agreements also send a signal of increased demand for SAF, which in turn, helps spur more investments and projects,” Mr. Reyes said.

He noted that the development of SAF has been getting attention globally, with 19 biorefineries already operational.

“However, the bulk of these is located in Europe, with 15 operational refineries. Of the 99 planned SAF biorefineries, only 25% are in the Asia-Pacific region,” he added.

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Capital A, the Malaysia-based parent company of low-cost carrier AirAsia Philippines, said it is currently in discussions with several fuel producers potentially to supply a trial quantity of SAF.

“We expect to include some percentage of SAF in our fuel mix by 2025,” Capital A Chief Sustainability Officer Yap Mun Ching told BusinessWorld in an e-mail interview.

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She added that governments in the region should consider what resources and infrastructure are currently available in the region, as well as what they can invest in to develop a local SAF industry, rather than just adopting something that is developed for another region.

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Avelino D.L. Zapanta, aviation expert and former Philippine Airlines president and chief executive officer, said in a separate e-mail: “I have not sensed inclination on the part of our government on the subject. It does not seem to be part of their priority.” READ MORE

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