Asian airlines' competition to use "green" jet fuel

DNHN - As the global aviation business recovers from the damage caused by the COVID-19 epidemic, Asian airlines are experimenting with lower-carbon fuels to lessen the impact on the airline industry.

In early July, Singapore Airlines revealed that it has begun testing the usage of sustainable aviation fuel (SAF). Sustainable aviation fuel, sometimes known as biofuel, is a non-polluting alternative to fossil fuels (the main fuel in the rail and aviation industries).

SAF is made using sustainable resources rather than petroleum, such as bio-derived waste oil, agricultural wastes, or non-fossil CO2. Neste, a Finnish business, presently supplies the majority of SAF. The corporation has established a goal of lowering carbon dioxide emissions by 2,500 tons by 2050, intending to reach zero emissions by then.

Flights leaving the nation, including those operated by the low-cost airline Scoot, will use cleaner fuel. "SAF is the decarbonisation lever," said Lee Wen Fen, Senior Vice President of the airline. "This test underscores our commitment to attaining net zero carbon emissions by 2050."

Singapore is attempting to promote SAF throughout the country. The Government formed the International Advisory Board on Sustainable Aviation Hubs in February, which is anticipated to lay forth a strategy for establishing the SAF market in early 2023.

In celebration of World Environment Day, Malaysia Airlines flew the first passenger aircraft utilizing SAF in early June.

The International Air Transport Association (IATA) declared at the end of June that worldwide air passenger traffic in 2022 is predicted to surpass 3.8 billion people, a rise of about 70% year on year, with passenger traffic reaching 80% of pre-pandemic levels. Asian governments are relaxing entrance barriers, particularly for tourists, and rising aviation demand will create considerable income for the airline industry.

With the anticipated rebound momentum, airlines are beginning to prioritize decarbonization as a critical component of future competitiveness. Passengers may choose green-certified airlines, and governments may begin to pressure the sector to adhere to this new trend. It is projected that substituting SAF for all aviation fuel will cut carbon dioxide emissions by 70% to 90%.

Japan announced plans in the spring to replace 10% of domestic aeroplane fuel with SAF by 2030. In April, the Ministry of Land, Infrastructure, Transport, and Tourism, in collaboration with the Ministry of Economy, Trade, and Industry (METI), established a public-private partnership council to build a supply network.

The Council includes Refinery Eneos Holdings and airport operators, in addition to the country's two main airlines, All Nippon Airways (ANA) and Japan Airlines. They've also lately started talking about how to employ SAF, as well as setting safety criteria for new technologies like electric and hydrogen aeroplanes.

Other Japanese firms are likewise hastening the transition to local SAF manufacture. JGC Holdings, a Japanese engineering firm, and Cosmo Oil, a petroleum distributor, will commence commercial production of the SAF in 2025.

International collaborations began to take form as well. Airbus of Europe and Qantas Airways of Australia launched a cooperative venture on SAF in June. To encourage the growth of SAF in Australia, the two firms will invest $200 million in bio-related enterprises.

The cost of manufacturing SAF, according to METI, ranges from 200 yen to 1600 yen ($1.40 to $11.5) per litre, or 2 to 16 times the cost of regular jet fuel. Businesses must boost client selling prices to offset manufacturing costs.

Through its scheme, ANA may pass on expenses to travellers. In addition, businesses that use aeroplanes for business and other purposes can pay a percentage of SAF costs and get a certificate of CO2 emission reduction. They may compute the real CO2 reduction depending on the flight distance, then acquire the certificate and share it with investors.

However, the SAF's limited supply makes full-scale deployment difficult. According to IATA, 449 billion gallons of SAF must be generated each year to meet the 2050 decarbonization aim. However, just a few businesses have commercialized SAF, such as Finland's Neste, and output is restricted. The annual maximum is 125 million litres.

The European Parliament has decided to support laws requiring the aviation sector to gradually replace kerosene (jet fuel) with cleaner fuels to minimize greenhouse gas emissions and work toward the goal of becoming CO2-neutral by 2050.

According to the language of the agreement passed by the European Parliament, fuel providers at European Union airports must add at least 2% SAF into the gasoline. kerosene data since 2025, and this rate steadily climbs to 37 per cent by 2040, and 85 per cent by 2050, which is more ambitious than the EC's original target level. From 2025, planes refuelling at EU airports must use the above-mentioned percentage of sustainable aviation fuel.

Bao Bao