EcoCeres and Xiamen Airlines Partner to Advance SAF Production

On August 1, renewable fuel producer EcoCeres Inc. announced a partnership with Xiamen Airlines to jointly promote the localized collection and production of Sustainable Aviation Fuel (SAF). The two parties will leverage EcoCeres’ existing supply chain network to collect used cooking oil (UCO) from selected restaurant partners and transport it to EcoCeres’ production facilities, where it will be processed into high-quality SAF.

The collaboration aims to advance the circular economy concept of “turning waste into energy” by transforming used cooking oil into aviation fuel—effectively improving resource efficiency and reducing environmental pollution. According to EcoCeres, SAF produced from waste oil can reduce lifecycle carbon emissions by up to 80% compared to conventional fossil-based jet fuel, making it a significant step toward decarbonizing the aviation industry.

In addition, the project strengthens the localized and sustainable supply chain for aviation fuel, contributing to a more resilient green aviation ecosystem. EcoCeres CEO Matti Lievonen stated, “Partnering with Xiamen Airlines enables us to scale up the production of SAF from waste materials more rapidly and further support the aviation industry’s transition toward net-zero emissions.”

This partnership not only reflects the integration of environmental innovation and aviation but also offers a replicable and scalable model for the future development of the SAF industry in China.

Thailand to Announce National SAF Standard Next Year

According to the Bangkok Post, Thailand’s Department of Energy Business recently announced that the country plans to officially release its first national standard for Sustainable Aviation Fuel (SAF) next year, aiming to accelerate the aviation industry’s carbon reduction efforts.

Sarawut Kaewtathip, Director-General of the Department, stated that the draft is being developed with reference to the “ASTM D7566” standard established by ASTM International (formerly the American Society for Testing and Materials). This globally adopted standard ensures that SAF, when blended with conventional jet fuel, meets the necessary quality and safety requirements for commercial aviation.

Sarawut added that the drafting is expected to be completed by September, followed by a two-week public consultation period. During this time, public hearings will be organized to gather feedback from industry stakeholders and the general public.

Laos Launches Pilot Project to Produce Biodiesel from Waste Cooking Oil

Recently, Laos officially launched a pilot project to produce biodiesel from waste cooking oil, aiming to foster innovative energy technologies and sustainable business models. Supported by the Asian Development Bank (ADB) and implemented in partnership with the Lao Ministry of Industry and Commerce, the pilot plant is designed to produce 500 liters of biodiesel per day from waste cooking oil. The biodiesel will first be trialed in vehicles operated by the state power utility. As the first facility in Laos to employ this technology, it will generate baseline data for research aimed at reducing oil imports and boosting domestic renewable energy use.

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XCF Global Plans $1 Billion Investment to Build SAF Production Network

XCF Global has unveiled a strategic plan to invest nearly $1 billion (€860 million) over the next three years to build a network of sustainable aviation fuel (SAF) production facilities. This move aims to expand its U.S. operations and accelerate international growth. Since its inception, the company has invested over $350 million (€300 million) in the New Rise Reno project, which has created around 60 full-time jobs in the Reno-Tahoe region. With over 2 billion people now living in countries that mandate SAF use or offer strong incentives, and that number expected to double by 2030, XCF is positioning itself to meet the growing global demand. CEO Mihir Dange emphasized, “We’re not just dreaming of decarbonizing aviation—we’re making it happen.”

EU Approves €36 Million Danish Aid Scheme to Boost Domestic SAF Use

On July 28, the European Commission approved a €36 million ($41.07 million) Danish state aid scheme aimed at promoting the use of sustainable aviation fuel (SAF) on domestic routes. This is the first time the Commission has authorized a state aid scheme specifically to encourage SAF usage in aviation.

The scheme is designed to support at least one domestic air route in Denmark using 40% SAF. Airlines will receive monthly direct grants to cover the additional costs of SAF compared to conventional jet fuel, including related airport infrastructure expenses.

Aid amounts will be determined through a competitive bidding process. The program will support at least 20 commercial one-way SAF-powered flights per week on one or more domestic routes.

To prevent double funding, the scheme explicitly excludes SAF that is already subsidized by Denmark, other EU member states, or non-EU countries. It also ensures that SAF supported under this scheme does not receive overlapping support under the ReFuelEU Aviation regulation or the EU Emissions Trading System directive.

The aid scheme will remain in effect until the end of 2027. It marks a significant step toward Denmark’s green transition in aviation and serves as a potential model for other EU countries to follow.

Indian Oil to Upgrade Panipat Refinery for Sustainable Aviation Fuel Production

According to Reuters, Indian Oil Corp (IOC), the country’s largest refiner, plans to upgrade a diesel desulfurization unit at its Panipat refinery — which has a capacity of 300,000 barrels per day — to produce sustainable aviation fuel (SAF). The revamp is expected to take place either at the end of this year or early next year, with SAF production scheduled to begin in 2025.

The upgraded unit will process used cooking oil (UCO) and is expected to produce around 30,000 tons of SAF annually. This initiative aligns with India’s national target of blending 1% SAF into aviation fuel by 2027 and doubling that to 2% by 2028.

Importantly, the refinery’s diesel output will not be affected during the upgrade period, as Panipat has additional diesel hydroprocessing units to maintain normal operations.

In addition to the Panipat project, IOC is also considering upgrading kerosene-producing units at other refineries to expand SAF production. These efforts highlight India’s growing commitment to sustainable aviation and its broader energy transition goals.

Indonesia’s B50 Biodiesel Plan Poised to Boost Palm Oil Consumption and Support Prices

CIMB Securities, a leading investment bank in Indonesia, recently published a study suggesting that if the Indonesian government implements the B50 biodiesel mandate, domestic palm oil consumption could rise by approximately 3 million tonnes. This increase would represent about 6.2% of the projected 2024 crude palm oil (CPO) production, which stands at 48.2 million tonnes.

The study notes that the B50 policy, expected to take effect in 2026, may provide additional support to CPO prices by offsetting the negative impact of the U.S. decision to raise palm oil import tariffs—19% for Indonesia and 25% for Malaysia—effective from August 1, 2025.

Indonesia’s Ministry of Energy and Mineral Resources has announced plans to adopt the B50 standard, although the final mandate for 2025 has yet to be confirmed. The government is still consulting with experts and assessing feedstock availability and refining capacity. The ministry indicated that five new biodiesel plants would be required to support B50 implementation, but only three are currently under construction.

CIMB remains optimistic about Indonesia’s ability to achieve its B40 blending target in 2025, which could boost domestic CPO consumption by 2 million tonnes and reduce export surpluses. Out of the allocated 15.62 million kiloliters of biodiesel, 7.55 million kiloliters (48%) will be used in public services such as transportation and fully subsidized, while the remaining portion will be sold at market prices without subsidies.

The bank emphasized that the potential rollout of B50 is a key factor to watch, as it may tighten Indonesia’s palm oil exports in 2026, providing short-term price support. Meanwhile, Malaysia is expected to raise its CPO reference price and increase export tariffs to 9% in August.

Proposed large-scale SAF plant in Australia using methanol as raw material

HAMR Energy announced on July 28 that it plans to develop Australia’s first large-scale methanol-to-sustainable aviation fuel (SAF) production facility following the successful completion of a feasibility study, with an estimated project investment of AUD$700 million to AUD$800 million (approximately US$455 million to US$520 million). The project is a key component of HAMR Energy’s strategy to respond to new regulations in the international aviation industry that progressively allow the use of methanol as a feedstock for SAF.

HAMR plans to convert 300,000 tons of low-carbon methanol produced from forestry residues and hydrogen at its Portland-based renewable fuels project into approximately 125 million liters of SAF, which could support approximately 3.5 million carbon-neutral flights per year for economy class passengers between Sydney and Melbourne. The scalability and versatility of methanol as a feedstock for renewable fuels will help alleviate the projected global supply gap of 10 million tons of SAF by 2030, the company said.

South Australia and Victoria were identified as ideal locations based on research, and HAMR’s vertically integrated “biomass-to-fuel” model reduces production costs, making it attractive to airlines looking to lock in a long-term supply of low-carbon fuel.

Company co-founder David Stribble emphasizes Australia’s potential to develop a world-leading low carbon liquid fuels industry that will not only attract significant investment, but also contribute to regional employment and national energy security. HAMR is currently nearing completion of its A$10 million Series A funding round and has the attention of a number of strategic partners.

Eni’s $500 million financing agreement signed, production of hydrogenated vegetable oil (HVO)

On July 24, Italian energy giant Eni announced the signing of a €500 million (approximately $588 million) financing agreement with the European Investment Bank (EIB) to support the conversion of its traditional refinery in Livorno, Tuscany into a modern biorefinery. The 15-year loan agreement was formalized at Eni’s headquarters in San Donato Milanese by EIB Vice President Gelsomina Vigliotti and Eni CEO Claudio Descalzi.

As the EU’s long-term lending institution, the EIB supports strategic green investments aligned with EU policy goals. This project will involve the construction of a new Ecofining™ plant with an annual capacity of 500,000 tonnes, along with a bio-feedstock pre-treatment facility. Using Eni’s proprietary Ecofining™ technology, the facility will produce hydrotreated vegetable oil (HVO), a renewable diesel made from waste cooking oil and agricultural residues. HVO can replace fossil diesel without infrastructure modifications and is suitable for road, rail, aviation, and marine transport.

Vigliotti highlighted the project’s strategic significance from both a technological and environmental perspective, calling it a model for industrial innovation driving climate neutrality. Descalzi emphasized that the Livorno biorefinery will contribute to Eni’s goal of reaching 5 million tonnes of bio-refining capacity by 2030, becoming the third such facility in Italy after Venice and Gela.

Notably, the plant will also have the flexibility to produce sustainable aviation fuel (SAF), supporting the EU’s green aviation ambitions. With global HVO demand projected to grow by 65% between 2024 and 2028, this investment not only aligns with the EU’s Renewable Energy Directive (RED III) but also helps Italy meet its legal target of using 1 million tonnes of biofuels by 2030.

IATA denounces EU SAF fuel policy as ineffective and costly

According to Reuters in Singapore, the International Air Transport Association (IATA) has intensified its criticism of the European Union’s (EU) mandatory sustainable aviation fuel (SAF) policy. At a recent media roundtable, IATA Director General Willie Walsh stated that the EU’s approach is not only costly but also ineffective in delivering real environmental benefits, especially given the current limited availability of SAF.

Walsh emphasized that transporting SAF from other regions to Europe increases logistics costs and carbon emissions, undermining the environmental purpose. “Mandating the use of a product that is not available will not yield any environmental gain,” he said.

He also warned that the EU policy distorts the market, effectively encouraging monopolistic behavior among suppliers. According to Walsh, companies obligated to produce SAF are using the mandate to inflate the price of conventional jet fuel, ultimately passing the burden onto airlines and passengers without delivering meaningful sustainability outcomes.

Walsh called on the EU to reassess its sustainability goals and adopt more balanced, effective policies, particularly in the areas of agriculture and fuel supply chains.