Asia’s Green Jet Fuel Ambitions Outpace Demand, Boosting Exports

March 18, 2025

Singapore, Reuters– Asia’s production of sustainable aviation fuel (SAF) is set to surpass regional demand in 2024 and 2025, prompting increased exports to Europe and other markets, industry experts report. Despite significant investments in SAF projects, low domestic demand and regulatory delays are preventing widespread adoption within Asia.

While European airlines face strict mandates to use sustainable fuel, Asia lags behind with minimal compulsory SAF usage. Many Asian airlines prioritize cost savings over environmental considerations, arguing that SAF remains too expensive and scarce.

Industry analysts note that this surplus in SAF production could drive prices lower, benefiting airlines globally. However, if regional demand fails to rise, planned SAF projects may become financially unsustainable. The Asia-Pacific region’s SAF production is expected to reach 3.5 million metric tons by 2025, compared to 1.4 million metric tons in 2024, according to data from Argus Consulting.

Export Growth & Industry Developments
Japanese refiner Cosmo Energy will begin SAF production in April, while Thailand’s PTT Global Chemical* and Bangkok Petroleum will expand output later this year. Taiwan’s *Formosa Petrochemical* has also ramped up SAF supplies, catering to local airlines and export markets.

Meanwhile, Singapore’s Neste, the world’s largest SAF producer, plans to increase output to at least *7 million tons by 2030*. Newcomer firms such as Bain Capital-backed EcoCeres are also eyeing production expansion.

Despite these advances, SAF prices in Asia remain significantly higher than traditional jet fuel, averaging *$1,700 per ton, compared to **$500-$600 per ton* for conventional fuel. This cost disparity continues to deter airlines from widespread adoption.

Future Outlook
With weaker domestic demand, Asia is set to remain a SAF net exporter through 2026. The price gap between SAF and conventional fuel has narrowed, but industry leaders stress the need for regulatory support and uniform policies across the region to accelerate SAF adoption.