Industry Insights with Shutong Liu, Founder and Chief Executive Officer, MotionEco
In this interview Shutong Liu, the Founder and Chief Executive Officer of MotionEco Green Fuels shares his insight into the unique feedstock opportunities in APAC, and what will be the biggest drivers in scaling up SAF production in the region.
How can China accelerate the global supply of SAF?
China's pivotal role in the global UCO market positions it uniquely to accelerate SAF production and supply on a global scale. As one of the biggest exporter of UCO in the world, China has already developed a sustainable UCO supply chain. A lot of the HEFA capacity has been planned, China will become one of the major SAF supplier in eastern Asia. On the other hand, China is also developing many new technology routes, with a focus on E-fuels, as China is also world’s biggest Solar and Wind producer and investor.
Which feedstock will provide the biggest opportunity for the region?
UCO as a Primary Feedstock: While UCO remains a crucial feedstock, its supply is inherently limited and subject to fluctuations. Before 2030, UCO will still be the major feedstock, China could utilize 5-6million tons of UCO for the SAF industry. But in the long term, Utilizing agricultural residues such as corn stover, sugarcane bagasse, and forestry processing waste as feedstocks can potentially increase SAF production capacity. However, this requires advancements in conversion technologies and economic viability.
What are the current policy challenges in advancing SAF in China?
China has made significant strides in promoting renewable energy, but challenges persist in accelerating the adoption of Sustainable Aviation Fuel (SAF). Besides 50,000 mt consumption target by 2025 during the “Fourteenth-Five Plan”. There is no other specific target for SAF in China yet. And China has not committed to ICAO-CORSIA program. The challenge is how can China advance its renewable energy policy to include aviation sector as part of the sustainable development plan. The main aviation industry related policy was lead by the CAAC (Civil Aviation Administration of China), it also need the policy support from National Energy Administration as well as the Ministry of the Environment.
How important is public support in the acceleration of sustainable strategies in the region?
Public support is crucial for the sustainable development of the Aviation industry. As SAF is still at a very significant high cost, A strong public mandate for sustainability can pressure policymakers to prioritize SAF development and implement supportive policies, such as subsidies, tax incentives, and mandates. Increased public awareness and preference for environmentally friendly options can drive demand for SAF-powered flights, incentivizing airlines and fuel producers to invest in the technology. A supportive public policy can attract investments from both domestic and foreign sources, as investors often consider public sentiment when making decisions. By understanding the factors influencing public opinion and implementing strategies to build support, policymakers, industry stakeholders, and civil society can work together to create a favorable environment for SAF adoption.
What more do you believe needs to happen to accelerate sustainable aviation in the region?
There is a need to increase public awareness of SAF and its benefits to encourage widespread support. Effective government communication and education are crucial for shaping public opinion and building trust in SAF initiatives. At the same time promoting Public and Private Partnership could accelerate the SAF industry development. Governments possess policy-making, regulatory, and financial capabilities, while the private sector brings technological expertise, market knowledge, and operational efficiency.
Would you like hear more about the Asia Pacific SAF landscape?