Product
Unlocking Sustainable Aviation Fuel (SAF) Opportunities in Asia Pacific
Across the Asia Pacific, 105 billion litres of jet fuel are consumed every year, accounting for 2.5% of energy-related emissions. With impending national decarbonisation goals and the aviation sector’s 2050 net zero targets, emissions reduction is critical.
Yet, this essential sector faces unique decarbonisation and electrification challenges: aircraft’s heavy payloads and long journey distances.
Sustainable Aviation Fuel (SAF) emerges as the most viable decarbonisation solution in the near term, functioning as a 'drop-in' fuel with minimal modifications to aircraft or infrastructure.
The international SAF market is navigating a complex and constantly evolving supply-demand balance, shaped by significant regional differences in government policy and regulatory support. Effective participation in this market requires far greater transparency and market visibility than is currently accessible. Country-specific factors such as carbon pricing, mandated and voluntary demand targets, and feedstock availability all play critical role in shaping investment and operational decisions for market participants.
Deloitte’s SAF Lighthouse tool provides an outlook for industry to easily gauge market dynamics within the Asia Pacific region.
Insights include a quantitative demand outlook by country and airline and forward-looking theoretical supply cost curves, displaying cost of emissions abatement benchmarked against current carbon prices. Users will gain an understanding of project locations, with overlays of demand and supply, illustrating where surpluses and deficits are expected to form.
Deloitte’s SAF Lighthouse tool illuminates market conditions for players across the SAF value chain.
SAF Lighthouse incorporates country-specific factors, allowing users to make informed cross-country comparisons of feedstock and fuel supply, demand, and the key drivers influencing each. Key features include:
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Encapsulates an all of market perspective for feedstock and associated SAF production.
Provides visual representations of quantitative demand projections by country, and optionally by airline.
Includes a forward-looking theoretical supply cost curve, helping to understand the cost of emissions abatement.
Helps to overcome information asymmetries around feedstock and SAF pricing.
Assist in matching players across the value chain, including feedstock aggregators, fuel refiners, airlines, corporate buyers and policymakers.
Helps to understand projection of SAF surpluses, deficits and relative competitiveness between countries.
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