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The Board of Investments and the Asia Sustainable Aviation Fuel Association signed a memorandum of understanding to promote the development of the Philippines’ sustainable aviation fuel industry
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The partnership was formalized during the first ASEAN Sustainable Aviation Fuel Convergence Forum
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The agreement covers investment promotion, policy dialogue, knowledge sharing, capacity building and stakeholder engagement
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BOI is positioning SAF as an opportunity to attract investments, diversify energy sources and support sustainable industrial growth
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The Department of Energy is pushing for a 1% SAF blend by 2030, with the proposed mandate to be based partly on feedstock availability and investor interest
The Board of Investments (BOI) and the Asia Sustainable Aviation Fuel Association (ASAFA) have signed a memorandum of understanding (MOU) to promote the development of the Philippines’ sustainable aviation fuel (SAF) industry.
The agreement was formalized during the first ASEAN (Association of Southeast Asian Nations) Sustainable Aviation Fuel Convergence Forum in Pasay City, with Trade undersecretary and BOI managing head Ceferino Rodolfo, BOI acting director Francis Peñaflor, ASAFA CEO and founder Fabrice Espinosa, and ASAFA founder and chief strategy officer Gabriel Ho leading the ceremonial signing.
Under the partnership, BOI and ASAFA will collaborate on investment promotion, policy dialogue, knowledge sharing, capacity building and stakeholder engagement, among other initiatives, to strengthen the country’s SAF ecosystem.
READ: ASEAN holds big potential as producer, user of sustainable aviation fuel
The BOI, the country’s lead investment promotion and industry development agency, is positioning SAF as an opportunity to attract investments, diversify energy sources and support sustainable industrial growth.
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PH eyes lead in sustainable aviation fuel production, use
The partnership comes as the Department of Energy (DOE) pushes for a 1% SAF blending requirement by 2030 as part of efforts to reduce the carbon footprint of air travel.
DOE undersecretary Alessandro Sales said the agency is discussing the proposed mandate with the DOE-chaired National Biofuel Board, with the initial target to take into account feedstock availability and investor appetite.
“The recommendation is to have a one-percent SAF mix or mandate by 2030. So it allows for a long enough runway before mandate kicks in,” Sales told reporters on the sidelines of ASEAN Energy Business Forum on October 6.
“So if we develop this, there is still three to four years to build up the local supply,” he added.
Sales acknowledged that SAF currently costs three to four times more than conventional fossil fuel but said the blending requirement would be introduced incrementally to limit its impact on aviation costs.
“[That’s] because the production is still small, it’s not yet optimized. So the pricing is still high. I think the main thrust here is to raise production, therefore, it would lower down prices… At the end of the day, [it’s about] how close we can bring it to the fossil fuel price level,” Sales said.
Energy secretary Sharon Garin said the development of SAF could generate economic and industrial opportunities through the use of feedstock resources, manufacturing and the identification of potential locations for international aviation routes.
“Scaling SAF commercially will require capital, technology, sustainable feedstock, production and logistics infrastructure, credible standards and certification, and clear policies that provide long-term certainty for industry and investors,” Garin said.
Garin said the development of sustainable supply chains could also provide opportunities for the Philippines and neighboring countries to cooperate on agricultural and biomass resources and attract investments.
READ: IATA, ICAO boost joint push for sustainable aviation fuel
