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The Board of Investments is supporting three local projects that are aiming to produce a combined 129,000 tons of sustainable aviation fuel annually by 2030
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The projects are: SAFasia, Inc. located in Clark; Alcom Carbon Markets Philippines, Inc. in Isabela; and Cavitoil Basura Power Inc. in Cebu
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BOI is helping the companies package their projects and present these for financing and possible equity partners
The Board of Investments (BOI) is supporting three local projects that are aiming to produce a combined 129,000 tons of sustainable aviation fuel (SAF) annually by 2030 through capital-raising and partnership preparations.
BOI, supported by the United Nations Economic and Social Commission for Asia and the Pacific, is assisting SAFasia, Inc. located in Clark, Alcom Carbon Markets Philippines, Inc. in Isabela, and Cavitoil Basura Power Inc. in Cebu in packaging their projects for presentation to financing institutions, commercial banks, and possible equity partners.
They will be utilizing different technologies and feedstocks for production, BOI supervising investments specialist Morinaella Jeusine Torgo said during the recent 2026 ASEAN Transportation Forum hosted by the European Chamber of Commerce of the Philippines.
SAFasia will use the fischer-tropsch process, Alcom will use alcohol-to-jet process, while Cavioil will use municipal solid waste.
Torgo said they are hoping these green jet fuel projects will already be live by 2030, when the target 1% SAF blending mandate for the aviation sector is eyed to be implemented.
READ: BOI, ASAFA partner to grow PH sustainable aviation fuel
Energy undersecretary Alessandro Sales earlier said the Department of Energy (DOE) is discussing the proposed 1% SAF blending mandate with the DOE-chaired National Biofuel Board, with the initial target to take into account feedstock availability and investor appetite.
For export
For now, Torgo said SAFasia and Alcom are looking at the export market since the Philippines is still working on its SAF mandate. She added that the companies already have offtake partners.
SAF is an environmentally sustainable and chemically identical alternative to fossil fuel-based aviation fuel. As a drop-in fuel, it can be blended with conventional aviation fuel and readily used without requiring any modifications to aircraft or airport infrastructure. On average, SAF can reduce carbon dioxide emissions by 80% compared to traditional jet fuel.
READ: IATA launches body to manage SAF Registry
The aviation sector has committed to achieving net zero carbon emissions by 2050, with the use of SAF having the greatest potential to reduce carbon dioxide emissions from international aviation.
Locally, domestic carriers Philippine Airlines and Cebu Pacific also aim to achieve net zero emissions by 2050 in line with the global schedule, with SAF usage contributing to this goal.
The use of SAF is also in line with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) initiative, which offers a “harmonized way” to reduce emissions from international aviation.
Based on CORSIA’s timetable, participating ICAO member states, including the Philippines, are mandated to comply with the carbon dioxide off-setting requirements by 2024-2026. The mandatory compliance is set for 2027-2035.
Tax incentives for SAF production
In a presentation during the forum, Torgo said the Philippines has a distinct value proposition in SAF production, having diverse agriculture resources, including rice, corn, coconut, cassava, sugarcane residues and other biomass materials. The country also has oil-based feedstock opportunities, such as used cooking oil and non-standard coconut, concentrated in central regions. These resources provide possible starting points for projects and feedstock aggregation, processing, and fuel production.
Investments in SAF projects may be covered by fiscal incentives under the Republic Act No. 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, and R.A. 9513 or the Renewable Energy (RE) Act of 2008.
SAF production utilizing locally-available feedstocks was also included as a Tier 2 activity under the latest 2026 Strategic Investment Priority Plan (SIPP), recognizing SAF as an industrial and sustainability priority, rather than treating it as an aviation compliance requirement. Eligible projects may receive an income tax holiday, customs duty exemption, special corporate income tax or enhanced deductions, and value-added tax exemption or zero rating, as applicable.
READ: CAAP sets course for sustainable aviation fuel shift
PH eyes lead in sustainable aviation fuel production, use
Aside from SAF production, other activities across the entire feedstock-to-flight value chain may qualify under relevant SIPP categories. These include feedstock production and processing, SAF conversion and production, RE, plant design and implementation, logistics, and storage.—Roumina Pablo
