TAIPEI (Taiwan News)—CPC Corporation expects to begin producing sustainable aviation fuel in the second quarter of next year, CNA reported on Sunday.

Sustainable aviation fuel, a renewable alternative made from sources like plant or animal materials, can significantly lower greenhouse gas emissions by up to 80% and reduce the airline sector's reliance on fossil fuels.

According to the company, its oil refining laboratory completed testing on catalyst performance and SAF production. Meanwhile, its Taoyuan refinery is undergoing equipment upgrades and replacements, including the construction of additional storage tanks and the replacement of pumps, in preparation for SAF production.

CPC Corporation said that producing sustainable aviation fuel is a crucial element of its transformation strategy, driven by the rapid growth of electric vehicles and decreasing gasoline demand. The company added that its SAF can be tailored to meet airline requirements by altering the blending ratio with traditional jet fuel.

The company said that SAF production costs are four to five times greater than traditional jet fuel, primarily due to the need to replace catalysts during the refining process. It added that if demand for SAF continues to grow, its Dalin Refinery in Kaohsiung will also begin production to serve airlines at Kaohsiung International Airport.

This year marks the first use of SAF in Taiwan's aviation sector. The company said it imported nearly 1,000 tonnes of SAF in line with the Ministry of Transportation and Communications policy. The fuel will be utilized by a domestic airline for the first time on Wednesday.

The National Science and Technology Council reported that Taoyuan International Airport consumes an average of 2.4 million tonnes of aviation fuel annually. With plans to blend 5% to 10% SAF, domestic demand for the fuel is projected to reach 240,000 tonnes by 2030.

NSTC set a goal for domestic airlines to use 5% SAF on international routes by 2030, aiming for net-zero carbon emissions by 2050. The council also suggested that the government establish an SAF production hub to attract international flights for refueling in Taiwan, aiming to position the country as a key SAF production and transshipment center in the Asia-Pacific region.