The adoption of SAF by Taiwanese aviation operators remains voluntary, with the main demand driven by the international market. (Photo: iStock)
Taiwan is set to enter its first year of sustainable aviation fuel (SAF) adoption, with Songshan, Kaohsiung, and Taoyuan airports scheduled to begin SAF blending for domestic carriers in the first half of the year.
5% SAF by 2030: CPC and Formosa join Taiwan’s push for greener aviation
Used cooking oil, previously associated with food safety concerns, is now emerging as a valuable resource for producing biodiesel and SAF.
When properly processed, 10 liters of waste oil can yield about 9 liters of biodiesel. Compared to conventional jet fuel, biodiesel can cut greenhouse gas emissions by 90%.
Research from PwC shows that SAF can reduce emissions by 66% to 94%, making it a critical solution for the aviation industry’s net-zero transition.
The aviation sector accounts for 2.5% to 3% of global carbon dioxide emissions. To reach net-zero by 2050, the International Air Transport Association has set a target for SAF to make up 10% of fuel use by 2030 and 70% by mid-century.
In response, Taiwan’s Ministry of Transportation and Communication (MOTC) aims to reach 5% SAF use on international routes operated by domestic carriers by 2030.
The country’s first SAF use at Songshan, Kaohsiung and Taoyuan airports is expected to begin on April 22, Earth Day.
While current use by domestic airlines remains voluntary, international demand continues to drive the momentum. Refineries and feedstock suppliers are now racing to secure their place in Taiwan’s emerging SAF supply chain.
Formosa Petrochemical Corp. and CPC Corp. play key roles in Taiwan’s SAF supply chain. Formosa began trial production at its Mailiao facility in Yunlin at the end of 2024 and expects to produce 5,500 metric tons of SAF this year. CPC plans to start SAF production in the second quarter of 2026.
CPC became the first Taiwanese fuel supplier to obtain both ISCC CORSIA and ISCC EU certifications in 2024, qualifying it to supply SAF.
According to CPC spokesperson Lin Ko-ju (林珂如), the certifications cover the entire SAF supply chain, from export and marine transport to domestic reception, storage, and final delivery, all of which must meet certification standards before local distribution.
CPC said its first batch of SAF, imported from Finnish producer Neste, has been offloaded at its in Shen'ao fuel supply terminal on Feb. 25. The company will also offer customized SAF supply solutions to meet domestic airline demand in the future.
CPC plans to begin the first batch of domestic SAF production in the second quarter of 2026. The company’s Taoyuan refinery is currently procuring new catalysts required for SAF production and will adopt a co-processing approach to produce sustainable aviation fuel alongside traditional fuels, Lin said.
As the aviation industry embraces SAF as a key decarbonization strategy, Taiwanese airlines have generally set a target of 2% SAF usage by 2025, though it remains unclear whether this applies to international or domestic routes.
China Airlines aims to increase SAF use from 2% in 2025 to 65% by 2050. EVA Air also targets 2% by 2025 and has ordered 33 new Airbus aircraft that can reduce fuel consumption and emissions by 25%. STARLUX Airlines follows Airbus policy by using at least 5% SAF for new aircraft delivery flights.
Domestic waste oil supply may run short amid global push for SAF
According to Lin, SAF costs three to five times more than traditional jet fuel, so demand will largely depend on international regulations. One key factor is whether foreign airlines will be required to use SAF when refueling at airports in Taiwan.
The main momentum for SAF adoption currently comes from Europe and the U.K. The EU proposed legislation in July 2021, requiring all flights to the region to use SAF starting in 2025, with the blending mandate gradually increasing from 2% in 2025 to 63% by 2050.
In the Asia-Pacific region, Singapore plans to mandate 1% SAF use on all departing flights starting in 2026, increasing the blend to 3% to 5% by 2030. South Korea targets a 1% mandate by 2027, while Japan aims for 10% SAF use by 2030.
However, as domestic airlines increase their SAF usage, concerns are mounting over a potential shortage of waste cooking oil, which is currently the most cost-effective feedstock for SAF production.
Every 10,000 tons of waste cooking oil can yield around 7,000 to 7,500 tons of SAF. (Photo: iStock)
According to Taiwan’s Ministry of Environment, domestic waste cooking oil is disposed of through treatment facilities, reuse processors, or direct export. The total volume handled through these channels reached 89,652 metric tons from January to November 2023, a commissioned data shows.
However, waste cooking oil is used for various purposes. According to the report, treatment facilities handled 5,666 metric tons, accounting for about 6.3% of the total; reuse operators received 62,054 metric tons, or roughly 69.2%; and 21,932 metric tons, or 24.5%, were directly exported overseas.
That means only a limited portion of waste cooking oil can be secured by refineries for SAF production, as much of it is also used or exported for biodiesel.
According to the MOTC, every 10,000 tons of waste cooking oil can yield around 7,000 to 7,500 tons of SAF. Based on preliminary estimates submitted by six domestic airlines, the Civil Aeronautics Administration (CAA) projects Taiwan’s SAF demand for domestic blending could reach 122,000 tons by 2030.
To support the development of Taiwan’s SAF industry, the MOTC and the Ministry of Economic Affairs (MOEA) have jointly established an SAF task force, with CAA under the MOTC overseeing SAF usage planning, while the Energy Administration under the MOEA leads on the supply side. A mandatory regulation requiring fuel suppliers to provide SAF-blended fuel is expected to take effect in July 2030.
As the production process for SAF is relatively complex, with higher costs driven by factors such as feedstocks (like waste cooking oil, soybean oil, or animal fats), catalysts, equipment modifications, and certification requirements, industry players are calling on the government to introduce incentive programs like those for biodiesel and ethanol-blended gasoline to accelerate Taiwan’s SAF development.
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