Transforming Aviation: Indonesia’s Waste-Based SAF Innovation

A Promising Step Toward Sustainable Aviation

In a groundbreaking development, Indonesia is taking a leading role in sustainable aviation fuel (SAF) production with a new project spearheaded by NextChem, a subsidiary of the Italian company Maire. The SAF plant in Sei Mangkei, North Sumatra Province, promises to reduce carbon emissions significantly, leveraging innovative technology to transform waste into valuable aviation fuel. Projects like this underscore the aviation industry’s commitment to combating climate change by adopting cleaner energy solutions.

Utilizing Local Resources for Maximum Impact

The SAF plant in Sumatra is designed to produce approximately 60,000 tons of SAF annually, fulfilling about 5% of the jet fuel needs at Jakarta’s Soekarno-Hatta Airport, Indonesia’s largest. What sets this project apart is its reliance on local, sustainable feedstocks, including used cooking oil (UCO) and palm oil mill effluent (POME). These materials, which would otherwise go to waste, are converted into SAF through NextChem’s proprietary hydrogenation technology, boasting up to a 95% reduction in carbon emissions compared to traditional jet fuels.

This localized approach not only supports the regional economy but also ensures a lower carbon footprint throughout the supply chain. Such initiatives demonstrate the potential of circular economy principles in transforming industries like aviation into more sustainable operations.

A Collaborative Approach to Innovation

Behind the scenes, this project exemplifies the power of collaboration. A feasibility study conducted with PT Tripatra Engineers and Constructors assessed the availability and logistics of the required biomass, confirming the project’s viability. This meticulous groundwork highlights the importance of strategic partnerships in driving the adoption of SAF technologies globally.

As the aviation sector transitions to cleaner fuels, collaborative projects like this set a benchmark for how governments, private companies, and local industries can work together to achieve ambitious sustainability goals.

Global Expansion: SAF Beyond Borders

NextChem’s SAF initiatives extend far beyond Indonesia, reflecting a global commitment to decarbonizing aviation. Similar projects are underway in Kazakhstan and the United States. For example, the upcoming U.S. facility in Louisiana, powered by NextChem’s NX Circular gasification technology, aims to produce 450 million litres of SAF annually by 2028. In Europe, a pilot plant in Sarroch, Italy, serves as a testing ground for expanding NextChem’s renewable fuel technologies.

These efforts signify a broader shift within the industry, where regions worldwide are adopting SAF technologies tailored to their local resources and regulatory frameworks.

Transforming Challenges into Opportunities

Although SAF production costs remain high—Southeast Asia’s current rate is $1,834.27 per ton—the growing demand for green aviation fuels is driving innovation and cost efficiency. The Sei Mangkei plant exemplifies how technological advancements and economies of scale can make SAF more accessible. By addressing cost challenges, projects like this contribute to a larger movement toward sustainable air travel.

The Role of Thought Leadership in Sustainability

This transformative SAF initiative in Indonesia aligns closely with VURDHAAN’s mission of supporting the aviation sector’s decarbonization journey. As a consultancy deeply involved in sustainable solutions, VURDHAAN helps clients navigate the complexities of adopting SAF and meeting frameworks like CORSIA, EU ETS, and SBTi. By leveraging its expertise and tools, VURDHAAN empowers stakeholders to turn sustainability ambitions into actionable strategies.

A Vision of Hope for the Aviation Industry

Indonesia’s waste-based SAF plant is more than just a regional milestone; it’s a symbol of what’s possible when innovation meets determination. With a production model rooted in local sustainability and a global vision for scaling up, the Sei Mangkei project inspires hope for a future where aviation contributes less to global emissions and more to sustainable progress. The world’s eyes are on Indonesia, and projects like this pave the way for a cleaner, greener aviation sector.

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