Philippines plans to mandate 1% SAF mix by 2030

MANILA, Philippines — The Philippines is exploring a one-percent sustainable aviation fuel (SAF) blending mandate for the aviation sector by 2030, according to a senior energy official.

Energy Undersecretary Alessandro Sales said the SAF committee led by the Civil Aviation Authority of the Philippines is set to recommend the proposed mandate to accelerate the commercial adoption of SAF in the country.

“So it (timeline) allows for a long enough runway before the mandate kicks in,” he said yesterday on the sidelines of the 44th ASEAN Ministers on Energy meeting.

SAF is an environmentally and chemically identical alternative to conventional fossil fuel-based aviation fuel. It can be produced from renewable feedstocks such as agricultural waste and used vegetable oils.

The Philippines currently has no domestic SAF production, but the government is looking to promote wider adoption of the fuel as part of its broader energy transition strategy.

A key challenge, however, is the high cost of SAF, which has so far discouraged investments in domestic production facilities.

Sales said SAF currently costs about four times more than conventional jet fuel.

The proposed blending mandate is intended to help address that challenge by providing investors with a guaranteed market for locally produced SAF.

“Eventually, costs will come down to a more competitive level. So that’s a similar roadmap that we would want to follow as well,” Sales stressed.

Last year, aviation fuel accounted for around three percent of the country’s total fuel demand, latest Department of Energy data showed.

Sales said the Philippines and its Southeast Asian neighbors are in a unique position to develop the region not only as a major market for SAF but also as a potential production hub.

Energy Secretary Sharon Garin, meanwhile, said scaling the commercial adoption of SAF would require capital, technology, sustainable feedstock and clear policies.

Greater cooperation among ASEAN countries, she said, could help bring these elements together.

“Every day, millions of people travel on ASEAN’s airlines. In the years ahead, more of those journeys can be powered by SAF produced right here in our region,” Sales said.