The Department of Energy is pushing to make the Philippines a regional sustainable aviation fuel (SAF) production hub, with a proposed one percent blending mandate by 2030 to build demand and attract investment.
SAF is a cleaner, drop-in alternative to jet fuel made from agricultural waste, forestry residues, and used oils, cutting emissions without changing aircraft operations.
Energy Secretary Sharon Garin outlined the plan Tuesday at the ASEAN Energy Business Forum in Pasay City. Policy frameworks are being developed, with SAF named a priority industry in the 2026 Strategic Investment Priority Plan. The country will leverage its rich biomass resources to build supply chains, draw capital, advance decarbonization, boost energy security, and grow the economy. ASEAN overall is well-placed as a SAF hub given its resources, manufacturing base, and prime aviation location.
Undersecretary Alessandro Sales said the 2030 target gives three to four years to build local supply. SAF currently costs three to four times more than conventional fuel, and uncertain demand discourages investment. The mandate guarantees a market, while starting at one percent keeps cost impacts on airlines and airfares minimal. Prices should fall as production scales. Exact investment needs depend on plant sites and logistics and remain under assessment. Building domestic SAF also cuts reliance on imported fossil fuels.
