Sustainable Aviation Fuel (SAF) has been widely recognized as a key solution to decarbonizing the aviation sector and achieving global net-zero goals. Jia-Shen Tsai, Non-Resident Research Fellow, and I-Ting Juan, Policy Analyst at the Energy Resilience Program of DSET, recently contributed an op-ed to CommonWealth Magazine, analyzing three core challenges facing the development of Taiwan’s SAF industry. The authors argue that through regulatory innovation and international collaboration, Taiwan can build a more resilient and sustainable SAF supply chain, thereby strengthening its position within the clean energy networks of democratic nations.
The article begins by outlining the two primary technological pathways for SAF production: Hydroprocessed Esters and Fatty Acids (HEFA) and Alcohol-to-Jet (AtJ). Of these, HEFA is currently the most commercially mature, relying primarily on Used Cooking Oil (UCO) as feedstock. HEFA is expected to account for approximately 80% of global SAF production over the next five years.
According to the authors, Taiwan—like many countries in Asia—faces three structural challenges in developing its SAF sector: limited feedstock availability, China’s dominance in global UCO exports, and the lack of robust traceability mechanisms. In Taiwan’s case, meeting the government’s 2030 target of a 5% SAF blending ratio would require at least 320,000 tons of UCO annually, which is four times the current domestic capacity.
China currently dominates global UCO exports, supplying over half of UCO imports to the United States and more than a third to Europe. This overreliance on a single supplier raises significant geopolitical and market risks. In addition, the absence of a rigorous feedstock traceability system undermines the credibility of SAF’s lifecycle emission reductions, threatening public trust and policy support.
Amid these constraints, Taiwan holds relative advantages in waste oil collection and regulatory oversight. With a national recycling rate of 52%—ranking among the top three in Asia—Taiwan has built a decentralized UCO collection system based on local participation, transparency, and safety. Since 2014, the Ministry of Environment has implemented strict reporting and quality control regulations for waste cooking oil, laying the foundation for a mature and credible UCO ecosystem.
However, even if all domestic UCO is recovered, it will not be sufficient to meet Taiwan’s SAF feedstock demand. Additional supporting strategies will be necessary to close the gap.
The op-ed compares regional strategies and highlights two contrasting models in Asia: Singapore and Japan. Singapore has developed large-scale HEFA production capacity centered around Neste, a global biofuel producer, but has become increasingly reliant on Chinese feedstocks. In contrast, Japan has adopted a diversified approach, sourcing AtJ feedstocks from Southeast Asia and exploring the establishment of production bases near the feedstock origin to shorten supply chains and reduce emissions risks.
The authors recommend that Taiwan draw lessons from Japan’s strategy. While progress has been made in HEFA production, Taiwan should expand investment into next-generation technologies such as AtJ and deepen partnerships with like-minded democratic trade partners to build a more resilient SAF supply chain in the long term.
In conclusion, the article calls for Taiwan to focus on three strategic priorities in SAF development: (1) diversifying feedstock sources, (2) strengthening supply chain traceability, and (3) focusing on next-generation technology. By aligning its SAF development with the values of transparency, security, and climate responsibility, Taiwan can position itself as a trusted partner in the emerging global network of sustainable aviation and deepen its role in the democratic clean energy supply chain.
