Key findings of the joint Canadian-ASEAN research project:

·         Strong Sustainable Aviation Fuels (SAF) potential: Indonesia, Malaysia, the Philippines, Thailand and Vietnam have the feedstock to support SAF production. Southeast Asia’s key SAF waste feedstocks include rice, cassava and forestry residues.
·         Export potential: By 2040, Indonesia, the Philippines, Thailand and Vietnam could become net exporters, while Japan and South Korea are anticipated as major SAF importers in region. Also, the result indicates that Indonesia and Vietnam have high export potential for SAF due to its cost-effective supply chain for SAF distribution.
·         Sustainable feedstock expansion: Waste feedstock rice straw is identified as the feedstock group with the lowest carbon intensity (CI) score across multiple Southeast Asia countries.
·         R&D and innovation: Growth can be driven by enhanced farming practices and large-scale biomass use, not land expansion. Mechanisation, improved irrigation, and crop optimisation can boost supply without increasing deforestation.
·         Socioeconomic benefits: SAF industry promotes job creation, upskilling, gender equality, and opportunities for marginalised communities.

JAKARTA, Indonesia, 10 April, 2025 — Southeast Asia’s abundant agricultural feedstocks offer potential for the region to become a global hub for SAF, according to a joint Canadian-ASEAN research project.

The “Promoting the Production of Sustainable Aviation Fuels (SAF) from Agricultural Waste in the ASEAN Region” project marks a significant step towards a more sustainable aviation future in Southeast Asia. It was carried out by the ASEAN Secretariat, GHD, Boeing, Canadian Trade and Investment Facility for Development (CTIF), funded by Global Affairs Canada (GAC), and implemented by Cowater International, the Institute of Public Administrators of Canada (IPAC).

SAF is a renewable or waste-derived aviation fuel that meets sustainability criteria, reduces greenhouse gas emissions, and is compatible with existing aircraft and infrastructure, as a “drop-in” fuel.  Aviation engines can currently run on a mix of 50% SAF and 50% conventional aviation fuel, but the industry is working towards a 100% SAF mix. SAF lowers carbon emissions over the fuel’s life cycle by up to 80%, depending on the feedstock, with the potential to reduce even more in the future. SAF can be made from a wide variety of sources: cover crops and other nonedible plants, agricultural and forestry waste, non-recyclable municipal waste, industrial plant off-gassing and other feedstocks.

As part of the project, a techno-economic assessment was conducted in Cambodia, Indonesia, Lao PDR, Malaysia, Philippines, Thailand, and Vietnam, focusing on feedstock availability, technology pathways, carbon intensity, logistics, environmental and social aspects, institutional frameworks, and financial assessment.

With improvements in economic feasibility, SAF production in ASEAN could surpass regional demand, enabling exports both within and beyond ASEAN.

The expansion of SAF feedstock supply is expected to stem from enhanced farming practices and large-scale biomass utilisation rather than land expansion. The report emphasised that mechanisation, improved irrigation, and R&D in crop optimisation could boost feedstock availability without increasing deforestation or land conversion.

Beyond environmental benefits, the project highlighted SAF’s role in fostering gender equality and economic development. The SAF sector offers opportunities for job creation, upskilling, and workforce diversification, with a strong emphasis on inclusive participation of women and marginalised communities.

Deputy Secretary-General for the ASEAN Economic Community, Satvinder Singh, commended the initiative, stating: “This initiative marks a significant step in advancing ASEAN’s commitment to sustainable aviation. By leveraging regional resources and innovation, we are not only addressing environmental challenges but also driving economic growth and enhancing energy security. The successful completion of this project underscores ASEAN’s capacity for effective collaboration in tackling climate challenges while creating new opportunities for our communities.”

Vicky Singmin, Ambassador of Canada To ASEAN also commented on the initiative stating “CTIF technical assistance supported Southeast Asia countries with a project to improve the ability of the energy sector to assess the reliability of the upstream feedstock supply and the potential for sustained use and production within the region. The recommendations from the proposed project informed on the future development and operation of the pilot areas in selected member countries (Cambodia, Lao PDR, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam) to convert agricultural waste and residues to SAF. The project and recommendations supported the ASEAN Secretariat in ascertaining the reliability of feedstock supply for renewable fuels.”

Sharmine Tan, Boeing’s Regional Sustainability Lead for Southeast Asia said “SAF is the biggest opportunity to cut aviation emissions over the next 30 years. This research highlights Southeast Asia’s rich SAF feedstock potential, positioning the region as a key player in meeting global SAF demand. To unlock this potential, governments and industry must act decisively, harmonize sustainability policies, invest in infrastructure, and scale local production to build a robust regional SAF ecosystem. Southeast Asia has a unique opportunity to lead sustainable aviation while driving economic growth and environmental stewardship.”

Sachin Narang, GHD’s Executive Advisor – Energy and Infrastructure, said, “The successful completion of this project represents a major milestone in ASEAN’s journey toward sustainable aviation. The insights gained will serve as a foundation for future SAF initiatives, investments, and policy development across the region.”

The ASEAN Secretariat, together with its partners, invites continued collaboration with governments, industry leaders, research institutions, and investors to support the regional transition to SAF. Building on the findings of this project, the next phase will focus on areas such as enabling policy development, strengthening technical capacity, and mobilizing investment to support SAF deployment, among other collaborative efforts. Together, ASEAN governments, businesses and communities can help shape a sustainable aviation future that contributes meaningfully to regional and global sustainability goals.

The full Techno-Economic Assessment Report for the project can be referred to here: Promoting the Production of Sustainable Aviation Fuels from Agricultural Waste in the ASEAN Region - Techno-Economic Assessment Report