PH woos biojet fuel investments

MANILA, Philippines – The Philippines aims to play a bigger role in sustainable aviation fuel (SAF) as a production and investment hub.

“Investing in SAF is investing in the future,” Trade Undersecretary Ceferino Rodolfo said in a statement. “The Philippines has all of the elements needed to be a global hub, a world leader when it comes to SAF.”

READ: Philippines, Thailand most exposed to aviation slump — think tank

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To support that goal, the BOI has partnered with Island Skies Alliance (ISA), a nonprofit aviation organization that works with airlines, investors, technology providers, sustainability experts and government agencies involved in SAF development.

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Under a memorandum of understanding, the BOI and ISA will coordinate efforts on industry promotion, investment facilitation, policy advocacy and capacity building to accelerate the development of a domestic SAF industry.

This collaboration will cover the entire value chain, from feedstock development and fuel production to downstream aviation applications.

SAF, a lower-carbon alternative to conventional jet fuel, can be produced from a variety of feedstocks, including agricultural and forestry waste, used cooking oil and other biological materials.

According to the International Air Transport Association, SAF can reduce lifecycle carbon emissions by as much as 80 percent compared with conventional jet fuel, depending on the feedstock.

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The BOI said the Philippines is well-positioned to attract SAF investments due to its growing aviation sector, abundant feedstock and supportive policies. Coconut oil has emerged as a potential feedstock for SAF production in the country.

But ISA CEO Junard Cruz said realizing that opportunity would require sustained collaboration between the government and private sector.

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“One thing is clear: we want the Philippines to have the best chance possible to reach its potential,” Cruz added.

One of the biggest hurdles to wider SAF adoption remains cost. According to the International Council on Clean Transportation, SAF typically costs two to five times more than conventional jet fuel.

That challenge is particularly significant as airlines continue to contend with elevated fuel costs.

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A Level 12 fuel surcharge remains in effect, allowing airlines to charge an extra P389–P1,137 for domestic flights and P1,284.40–P9,550 for international flights on top of base fares. /pai INQ