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SE Asia could supply 12pc of global SAF by 2050: Report

  • : Biofuels
  • 24/09/04

Southeast Asia could have the capability to supply around 12pc of global demand for sustainable aviation fuel (SAF) by 2050, according to a report by not-for-profit association the Roundtable on Sustainable Biomaterials (RSB).

This would be equivalent to 45.7mn t out of an estimated 380mn t, based on the Air Transport Action Group's forecast for how much SAF will be needed to meet net-zero targets in 2050.

The RSB expects rice husks and straw to provide 36.9pc of feedstocks for SAF production in southeast Asia, followed by palm oil residues at 11.8pc. Around three-quarters of potential SAF feedstock can be sourced from post-consumer and agricultural waste, including cassava (9.3pc), sugarcane bagasse (6.4pc) and municipal solid waste (8.6pc), the RSB said.

The report expects Indonesia, Thailand, Vietnam, Malaysia and the Philippines together to account for about 90pc of the region's SAF supply in 2050. All five, except Vietnam, participate in CORSIA, a scheme that obligates members to buy SAF or buy offset credits to offset their emissions.

The RSB assessed feedstocks on availability and sustainability, using 12 social and environmental criteria including the region's "significant risk" of deforestation and water stress.

SAF accounted for just 0.2pc of global commercial aviation fuel use in 2023, but demand is poised to rise sharply on the back of upcoming blending mandates worldwide, particularly the EU's ReFuelEU mandate under which fuel suppliers will need to blend at least 2pc SAF in their jet fuel deliveries next year.

Some 43 international airlines are committed to using 13mn t/yr of SAF by 2030 to meet their regulatory and voluntary targets, and demand for SAF from the corporate sector has increased through book and claim approaches. Unblended SAF, which is completely free of fossil fuels, could reduce the aviation sector's emissions by 84pc over the fuel's lifecycle, according to the RSB.

Policies aligning

Regional policies in southeast Asia are beginning to reflect global trends, with several countries adopting or exploring SAF mandates, said RSB.

Indonesia and Malaysia, with their established biofuel industries, have "laid the groundwork" for SAF production, "leveraging their abundant agricultural resources" such as palm oil, while Thailand and the Philippines have initiated policy frameworks and pilot projects to explore SAF potential, although commercial production is "still nascent", the report said.

Singapore "stands out" with its comprehensive approach to SAF, the RSB said. The report highlights Singapore's National Sustainable Air Hub Blueprint launched in February 2024, which outlines a strategy to achieve net zero domestic and international aviation emissions by 2050. The blueprint also includes the introduction of a SAF levy for flights departing from Singapore in 2026.


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Gold Standard releases two new shipping methodologies


24/09/04
24/09/04

Gold Standard releases two new shipping methodologies

London, 4 September (Argus) — Carbon registry Gold Standard has launched its Methodology for Reducing Methane Emissions from Combustion Engine Exhaust and its Methodology for Marine Fuels and Bio Bunkers, aimed at reducing the environmental impact of shipping operations. The two new methodologies will add to Gold Standard's existing Retrofit Energy Efficiency Measures in Shipping methodology and Methodology for Emission Reduction by Shore-side or Offshore Electricity Supply System. The Methodology for Marine Fuels and Bio Bunkers was developed by biofuels trading firm Alcom, and will serve as a guideline for obtaining carbon credits from the use of marine biodiesel blends. The methodology currently only applies to marine biodiesel blends comprising used cooking oil methyl ester (Ucome), with a scope covering biofuel production to be used within the maritime industry across all sea vessel types and covering the entire chain of emissions on a well-to-wake basis. Only the biofuel component that has been loaded on to the vessel and blended with fossil fuels can be eligible for carbon credits under this methodology. Gold Standard's Methodology for Reducing Methane Emissions from Combustion Engine Exhaust was developed in partnership with consulting group Fremco and technology company Daphne Technology. The methodology aims to reduce methane emissions stemming from maritime and stationary land-based internal combustion engines that utilise natural gas or other methane-rich fuels. It will also mandate real-time measurements before and after the abatement system to ensure "robust monitoring of emission reductions". By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Order ending Canadian rail work stoppage appealed


24/08/30
24/08/30

Order ending Canadian rail work stoppage appealed

Washington, 30 August (Argus) — A Canadian rail employees union is appealing federal government orders that last week forced the resumption of rail service and sent the union and two railroads to binding arbitration. The Teamsters Canada Rail Conference (TCRC) filed an appeal with the Federal Court of Appeal on Thursday, challenging labour minister Steven MacKinnon's order ending the work stoppage and sending the parties to binding arbitration under the Canada Industrial Relations Board (CIRB). The union also appealed CIRB's 24 August decision upholding that order . "These decisions, if left unchallenged, set a dangerous precedent where a single politician can bust a union at will," union president Paul Boucher said. Canadian Pacific Kansas City (CPKC) declined to comment on the appeal, saying only that "operations continue and recovery is progressing well." Canadian National (CN) did not address the appeal directly but said it is prepared to participate in binding arbitration. "While that process is ongoing, we are focusing on our recovery plan and powering the economy," CN said. MacKinnon's 22 August order ended the work stoppage less than 18 hours after the union launched a strike at CPKC, while CPKC and CN locked out union members . The work stoppage froze ongoing rail operations, even though shipments of hazardous materials and other products had already ceased. The union subsequently notified CN that members would go on strike on 26 August. That strike was averted by the CIRB ruling on MacKinnon's order. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

South Korea to require use of SAF for flights from 2027


24/08/30
24/08/30

South Korea to require use of SAF for flights from 2027

Singapore, 30 August (Argus) — South Korea said it plans to require all international flights departing from its airports to use a mix of 1pc sustainable aviation fuel (SAF) from 2027. This comes as more countries are adopting SAF mandates in accordance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Singapore earlier this year announced a 1pc SAF blending mandate from 2026 , with plans to increase to 3-5pc by 2030, subject to global developments and wider SAF availability and adoption. The Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport announced the 'SAF Expansion Strategy' on 30 August, which includes a target for South Korea to capture 30pc of the global blended SAF export market. While not explicitly stated in the statement, some South Korean refineries expect co-processed SAF to be allowed to meet the country's mandate, sources said. This is important as the country already produces small quantities of SAF via co-processing at existing refining facilities, with three of South Korea's four domestic refineries planning to produce SAF through co-processing by the end of this year . Key strategies The ministries outlined three key strategies to achieve the SAF consumption target — gradual expansion of domestic SAF demand, ensuring a stable domestic supply capacity, and establishing a SAF-friendly legal and institutional environment. Airlines can already refuel with SAF at Korean airports, making South Korea the 20th country to do so as part of their plan to increase domestic SAF demand. The country had tested six flights using 2-4pc imported blended SAF between South Korea and Los Angeles since August 2023. An incentive system is being developed to encourage public and private adoption of SAF, with benefits such as preferential allocation of transport rights, reduced airport facility usage fees and the introduction of airline carbon mileage system for passengers and other benefits. A mid- to long-term roadmap for the gradual expansion of domestic SAF demand will be prepared in early 2025, the ministries said. The country's strategy to secure stable domestic supply capabilities includes considering investment support for domestic SAF production such as tax credits. South Korea's four domestic refineries already plan to invest 4 trillion won ($3bn) in renewable fuels, including SAF by 2030, the ministries said. The government estimates a Hydrotreated Esters and Fatty Acids (HEFA) SAF plant with a production capacity of up to 250,000 t/yr will require an investment of approximately W1 trillion. The supply-side strategy also aims to ease regulations on waste recycling to increase the availability of domestic feedstocks for SAF production. Another strategy is to diversify feedstock and SAF production technology options, with pre-testing expected later this year. The government plans to explore alternative feedstock like microalgae and production pathways such as e-SAF, with a view to developing supply chains. South Korea plans to establish a national standard, certification and testing method for SAF with preparation planned for December 2024. By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia's Qantas records higher fuel costs in 2023-24


24/08/30
24/08/30

Australia's Qantas records higher fuel costs in 2023-24

Singapore, 30 August (Argus) — Australian airline Qantas Airways recorded a higher fuel bill in the 2023-24 fiscal year to 30 June, as more flights, sustainable aviation fuel (SAF) expenses and carbon offset programmes weighed on costs. Qantas saw its fuel costs rise by 17pc from a year earlier to A$5.32bn ($3.62bn) in 2023-24, according to the company's full-year financial results released on 29 August. The airline group's passenger carrying capacity was up by 21pc on the previous year, with growth in domestic and international capaicty. This saw the group's overall fuel consumption grow to 29mn bl (79,000 b/d), or 18pc up on the previous year. Qantas expects fuel costs in the first half of 2024-25 to remain stable from a year earlier at about A$2.7bn, including hedging and gross carbon costs, with the group forecasting to consume 15.6mn bl of fuel, including SAF. Qantas forecasts domestic group capacity to rise to 104pc of pre-Covid 19 pandemic capacity in the first half of 2024-25. Its international capacity guidance, excluding Jetstar Asia, is expected to rise by about 16pc from the previous year to achieve 102pc of pre-Covid levels in the first half. The group's passenger carrying capacity, measured by available seat kilometres (ASKs), was up on a year earlier by 21pc to 141mn ASK by 2023-24, although this was still about 93pc of pre-Covid levels. Qantas has agreements to offtake SAF, renewing its agreement to buy SAF for flights out of London Heathrow and doubling the size of its corporate customer SAF programme in 2023-24. But the group saw its 2023-24 profit fall, with underlying profit before tax down by 16pc on the previous year to A$2.08bn. By Cara Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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