MANILA—The Philippines is considering a 1 percent sustainable aviation fuel (SAF) blend mandate by 2030, according to the Department of Energy.
The recommendation was made by the government’s SAF committee, which is headed by the Civil Aviation Authority of the Philippines (CAAP).
"The recommendation is to have a 1 percent SAF mix or mandate by 2030 so it allows for long enough runway before the mandate exceeds. So kung idedevelop, may three to four years to build up the local supply," said Energy Undersecretary Alessandro Sales.
"May resource to produce the SAF so nasa isang unique procedure ‘yung region to be both the demand center for buyer and producer," he added.
Sales said SAF’s biggest obstacle is its cost, which is currently three to four times higher than fossil fuel, creating a “chicken-and-egg” problem for investors.
“So the workaround is to set a mandate of one percent, two percent, and the market ensures the facility can be set up. Eventually, [the] cost can come down," Sales said.
"That's a similar roadmap that we want to follow as well to keep off 'yung mga spark ng industry ng Philippines ng SAF potentially; a mandate may be set," he added.
Sales said there is no estimate yet for the investment needed to develop local SAF production.
Sales also said the country could potentially increase its biofuel blend.
"We also talked to international biofuel support about opening up feedstocks. Kasi ngayon nasa sugarcane molasses that comes from sugarcane 'yan ang allowed na feedstock," he said.
"I think there will be a proposal to amend corn as local feedstock to produce bioethanol," he said.