Industry Insights with Clarence Woo, Managing Director, Global Centre for Green Fuels
Clarence Woo
Managing Director
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Global Centre for Green Fuels
In this interview, Clarence Woo, the Managing Director of the Global Centre for Green Fuels shares his perspectives on how APAC can accelerate the global supply of SAF, and the roles of global and regional policy, and public support, in that acceleration.
How can Asia Pacific accelerate the global supply of SAF?
Asia Pacific is poised to significantly accelerate the global supply of Sustainable Aviation Fuel (SAF) due to its projected status as the largest aviation market by 2040. With 55% of the world’s population, countries like China, India, Vietnam, and Indonesia will drive growth in the region. GDP is expected to grow at 3.6% per year, outpacing the global average of 2.5%, and the middle class will expand by 1.1 billion to 3.2 billion, tripling the propensity for travel by 2040. The region’s potential lies in its capacity to both produce and consume SAF, meeting global aviation demands sustainably.
Countries such as Japan and Singapore have set ambitious SAF targets, kick-starting demand and encouraging investments in SAF production and infrastructure. Their leadership demonstrates how clear policy frameworks and financial incentives can catalyze industry growth, evidenced by the potential of 7 million tpa of SAF plants in the pipeline across Asia-Pacific.
To further drive global SAF supply, other Asian countries must establish similar mandates and incentives, foster public-private partnerships, and support research and development. Leveraging upon abundant agricultural resources and attractive overseas feedstocks, Asia Pacific can ramp up supply, reduce production costs, and increase SAF competitiveness. Strategic actions will create a robust SAF market, drive innovation, and position Asia Pacific as a pivotal player in global aviation decarbonization efforts.
What unique solutions exist for Australia to accelerate aviation decarbonisation opportunities?
Australia’s aviation sector has a unique opportunity to accelerate decarbonization by prioritizing the adoption and production of Sustainable Aviation Fuels (SAF). With the recent closure of two of its four oil refineries, Australia’s dependency on imported fossil fuels has deepened, as evidenced by the importation of 6.91 billion litres of jet fuel in 2023. To reduce this reliance and tackle aviation emissions, a strategic shift towards SAF is essential.
Hydroprocessed Esters and Fatty Acids (HEFA-SPK) SAF offers an immediate, albeit limited, solution due to the finite availability of domestic waste fats, oils, and greases (FOGs). Therefore, focusing on scaling up Alcohol-to-Jet (AtJ) SAF production emerges as a critical next step. AtJ SAF presents a promising pathway with a lower carbon intensity, making it a viable option for large-scale adoption in Australia. While other technologies like Fischer-Tropsch and Power-to-Liquid (PtL) SAF hold potential, they currently face significant technical and economic hurdles that hinder widespread implementation.
Seizing the momentum within the emerging bio-economy, Australia can drive down the costs of AtJ SAF through large-scale production, thereby facilitating broader adoption. This transition not only helps in reducing the aviation sector’s carbon footprint but also stimulates local biofuel production, creating a new wave of green jobs. Additionally, by fostering energy self-sufficiency, Australia can mitigate the risks associated with its growing reliance on fossil fuel imports. Through focused investment and policy support, Australia can lead the way in aviation decarbonization, setting an example for other nations while building a sustainable, resilient energy future.
What can be expected from policy to scale solutions to decarbonisation?
Effective policy is crucial for scaling decarbonization solutions by providing long-term certainty, stability, and a favorable environment for investment and innovation.
However , over the past two decades, the Asia Pacific region has faced challenges due to inconsistent policies, frequent reversals, and inadequate enforcement, all of which have hindered progress and undermined investor confidence.
To address these challenges, policies must be based on thorough feasibility assessments, detailed technical studies, and clear transition roadmaps. They should be technology neutral and consistent, avoiding abrupt changes that could destabilize the market. Engaging a diverse range of stakeholders, including industry leaders, researchers, NGOs, and financial institutions, is crucial to ensure that all perspectives are considered. This broad engagement promotes collaboration and strengthens the effectiveness and credibility of the policies.
Additionally, involving carbon certification and traceability organizations is necessary to guarantee the authenticity and transparency of decarbonization efforts. Policymakers must also ensure cross-ministry coordination to ensuring that all sectors work collaboratively toward common decarbonization goals.
Learning from successful examples, such as Brazil’s renewable energy strategy, can provide valuable insights. For example, importing advanced biofuels from established producer countries can help meet immediate decarbonization targets while building the foundation for domestic biofuel infrastructure and technology. This phased approach allows for a smooth transition, ensuring the necessary frameworks and resources for long-term sustainable energy adoption are in place.
Moreover, Asia Pacific should leverage global partnerships to tap into external resources, expertise, and investments. Collaborating with international stakeholders can bring advanced technologies, best practices, and financial support, accelerating the region’s ability to scale biofuel production and integrate it into the broader energy mix for a more resilient and sustainable future.
How important is public support in the acceleration of sustainable strategies in the region?
Public support is critical for advancing sustainable strategies in the region. There is widespread consensus on the necessity to decarbonize the transport sector, driven by grassroots movements advocating for change. However, significant gaps in knowledge and science literacy contribute to misconceptions. For instance, some believe that biofuels compete with food production or contribute to inflation, hindering progress.
Recent in-depth findings indicate that producing renewable fuels does not lead to an increase in international food prices. Advances in energy crop yields, sustainable farming practices, and efficient land use have effectively addressed these concerns. Modern agricultural techniques ensure that biofuel production neither undermines food security nor drives up prices. In fact, biofuels have positively impacted the livelihoods of smallholders, contributing significantly to economic development in rural areas. This aligns with the UN Sustainable Development Goals (SDGs), which emphasize inclusive and sustainable economic growth. Additionally, a recent study by the International Renewable Energy Agency (IRENA) highlights that the biofuels economy has created a substantial number of jobs. While many of these jobs are in planting and harvesting feedstock, fuel processing, though employing relatively fewer people, typically offers higher wages.
Addressing knowledge gaps and improving public understanding is critical for generating stronger support for sustainable initiatives. Educating the public and clarifying misconceptions will build a more informed base of support, facilitating the successful implementation of sustainable strategies and overcoming unfounded fears. By bridging these gaps, we can foster greater acceptance and accelerate progress toward a more sustainable future.
What more do you believe needs to happen to accelerate sustainable aviation in the region?
To accelerate sustainable aviation in the region, securing public support is paramount. Public backing can drive consumer demand for sustainable aviation options and create a favorable environment for adopting new technologies and practices. Achieving this requires raising awareness about the importance of sustainable aviation and showcasing successful case studies from the emerging SAF industry. By educating the public on the environmental and economic benefits, we can build the momentum needed to support this transition.
Policymakers will play a crucial role in this effort. Developing and implementing policies that reduce risks for sustainable aviation projects is essential. This includes financial incentives, subsidies, and regulations that enhance the feasibility of these projects. Singapore's upcoming fuel levy in 2026, which follows the “polluter pays” principle, is an example of how environmental costs can be shifted to passengers, making sustainable aviation fuels (SAF) more economically viable and encouraging higher blending ratios.
Investment from both public and private sectors is critical for supporting the research, development, and scaling of sustainable aviation technologies. One of the main challenges is the lack of available feedstocks, which has slowed the development of new SAF plants. However, studies suggest that there is significant untapped potential in existing and future feedstocks that could support aviation’s net-zero goals, with 100% SAF usage by 2050.
Global collaboration is another key factor in accelerating sustainable aviation. By pooling resources, aligning regulatory frameworks, and coordinating infrastructure development, countries in the region can enhance their efforts to increase SAF supply. Furthermore, transitioning from being primarily an exporter of feedstocks to becoming a producer and consumer of SAF will strengthen local production capabilities and boost the region’s bio-economic development.
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