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By Shikin Louis
KUCHING, Sept 5: Sarawak’s potential to market its microalgae-based sustainable aviation fuel (SAF) in the long run will not be affected by the projected slow demand growth for SAF in the next few years.
Argus Media’s deputy editor for Asia Biofuels and Net Zero, Lauren Joan Moffitt, during her paper presentation at East Malaysia Palm & Lauric Oils Price Outlook Conference & Exhibition 2023 (emPOC2023), stated that despite a lot of excitement on SAF at the moment but it is expected that there will be a lag between supply growth and demand growth on SAF in the next coming years.
However, she explained that this situation would not affect SAF production in Sarawak in any way as the State is still in the research and development (R&D) phase.
“For sure, in the long term, looking up to 2040 or 2050, SAF growth would become the key driver for biofuels.
“Meanwhile, the fossil fuel demand is going to drop for both gasoline and diesel-powered vehicles because we have other alternative fuels as part of decarbonisation efforts.
“However, not for jet fuels. Therefore, in the long term, SAF is going to be a huge power demand centred for these feedstocks,” she told DayakDaily after the event held at Imperial Hotel here today.
During her speech, Moffitt said that the projection of slow demand growth on SAF is primarily due to the absence of SAF mandate.
For an example, the European Union’s (EU) SAF mandate ruled that airlines will carry a certain minimum amount of SAF, starting with 2 per cent in 2025 and reaching 5 per cent in 2030.
She also noted that it is important for Sarawak, or Malaysia in general, to have its own SAF mandate to drive the demand growth.
“Similarly, this call also goes to Indonesia, China and other countries in the region where a lot of governments are looking into this (SAF mandate).
“We are expecting mandates to be announced in the near future and that will drive more demand for SAF,” she emphasised. – DayakDaily
