What role will Southeast Asia play in the global development of biofuels? What will be needed to incentivise and support the use of Southeast Asia feedstocks to support this industry? How do we address concerns of SAF greenwashing? These were topics recently discussed at the Sustainable Aviation Futures Congress 2024 held in Singapore, 4-6 November 2024.
Lamberto Gaggiotti, Head of Green Energy Business, Apical Group, was joined onstage by Caleb Wurth, Regional Director, Southeast Asia & Oceania, U.S. Grains Council, Unnikrishnan Unnithan, Co-Founder and Chief Executive Officer, Dibiz Group and Kim Mun Leong, President, Malaysia Biomass Industries Confederation. The insightful discussion was moderated by Arianna Baldo, Program Director, Roundtable on Sustainable Biomaterials.
Southeast Asia’s Pivotal Role in the Growing Biofuels Industry
The panellists emphasised Southeast Asia’s pivotal role in advancing the biofuels industry, pointing to the region’s diverse feedstocks, from palm oil, sugarcane and corn – all of which can be used to produce biofuels such as sustainable aviation fuel (SAF).
To spearhead the industry, the panellists emphasised the need to engage local communities, create economic incentives to attract financing, and leverage each country’s “comparative advantages” to optimise production and refine the biofuel mix.
Lamberto pointed out that there should be a supportive and consistent biofuels policy across the region to focus on waste and residue-based feedstocks which do not compete with food.
He added that as a resource-based business, with a strong and growing presence and access to agriculture waste and residue feedstocks, Apical is well-positioned to address the industry challenge of accessing raw materials for SAF production.
He also shared that Apical is building the largest biorefinery processing facility in southern Europe via a joint venture with Moeve (formerly known as CEPSA). It will commence production in 2026 and produce up to half a million tonnes of SAF and renewable diesel every year, using 2G feedstock such as agricultural waste and used cooking oils supplied by Apical.
Read more: Apical-Moeve Joint Venture Commences Construction of Southern Europe’s Largest 2G Biofuels Plant
Overall, the panellists believe that the region’s robust feedstock supply creates opportunities for growth. However, these opportunities need to align with broader carbon reduction goals and remain economically viable to be sustainable and impactful.
Unlocking the Potential for Sustainable Palm Oil
The discussion also addressed “the elephant in the room” – the question about sustainability and traceability of palm oil.
Dibiz Group’s Unnikrishnan Unnithan shared his belief that while palm is still the “poster type” of what the world thinks is going wrong as far as sustainability is concerned, significant progress has been made since the early days of the Roundtable on Sustainable Palm Oil (RSPO). He highlighted how technology is addressing these concerns, including real-time traceability solutions and free apps for smallholders. He believes that using technology to enhance traceability has boosted market trust but emphasised that “everyone in the room” has a shared responsibility to ensure oil palms are grown sustainably, while increasing the yields of smallholders.
The Importance of the 3As
According to Lamberto, Availability, Authenticity and Acceptability will drive the future of Southeast Asia’s biofuels industry. There is an abundant availability of feedstock in Southeast Asia, but this potential is not fully optimised. A lot of value can be unlocked with more investments in the necessary equipment and infrastructure. When it comes to authenticity, it is necessary to look at the entire supply chain and incorporate both quantity and quality checks, including the questions on certification and traceability. Finally, acceptability is about sustainability, and Apical is committed to 100% International Sustainability and Carbon Certification (ISCC).
The Vital Role of R&D
To conclude the discussion, the moderator asked the panellists, if they were each given $100 million to support sustainable feedstock development or SAF production in Southeast Asia, what would they do?
Lamberto pointed out that it is crucial for the industry to recognise the vital role that research and technology will play in its long-term development. He emphasised the need to “give money to people that do research. It’s very important”.
