Turbulant Times: Can Used Cooking Oil Fuel Aviation’s Green Future?

As the global aviation industry grapples with mounting pressure to reduce its carbon footprint, a seemingly unlikely resource—used cooking oil—has emerged as a potential cornerstone of sustainable aviation fuel (SAF). With airlines in Southeast Asia and beyond racing to meet net-zero emissions targets by 2050, this kitchen byproduct is being hailed as a key ingredient in greener skies. But significant hurdles, from supply constraints to regulatory challenges, cast doubt on whether it can truly power the future of flight.

The Promise of Used Cooking Oil in Aviation

In recent years, sustainable aviation fuel has become a buzzword in the fight against climate change. Unlike traditional jet fuel derived from fossil sources, SAF is produced from renewable materials, including agricultural waste, animal fats, and used cooking oil (UCO). When processed into hydrotreated esters and fatty acids (HEFA), UCO can be blended with conventional fuel to power aircraft, reducing greenhouse gas emissions by up to 80% over the fuel’s lifecycle, according to industry estimates.

Southeast Asia, a region with a booming aviation sector and a vast food industry, is uniquely positioned to capitalize on UCO as a feedstock. Countries like Indonesia and Malaysia, major producers of palm oil, generate substantial amounts of used oil from households, restaurants, and industrial kitchens. In 2023 alone, Indonesia reportedly produced millions of liters of UCO, much of which could be diverted from landfills or illegal disposal into fuel production. Meanwhile, Singapore, a global aviation hub, has piloted SAF initiatives, with Changi Airport facilitating test flights using blended fuels since 2022.

The appeal is clear: repurposing waste into fuel not only cuts emissions but also tackles waste management issues. “Turning used cooking oil into jet fuel is a win-win for the environment and the economy” said a spokesperson for a leading regional airline during a recent sustainability summit in Bangkok. Yet, beneath the optimism lies a complex web of challenges that could ground these green ambitions.

Supply Chain Struggles and Scalability Issues

One of the most pressing obstacles is supply. While Southeast Asia produces significant quantities of used cooking oil, much of it is not collected systematically. In rural areas of Thailand and Vietnam, for instance, households often reuse oil multiple times or discard it informally, making it difficult to gather at scale. Urban centers fare better, with restaurant chains and food processing units contributing to collection networks, but even these systems are fragmented. A 2024 report by a regional environmental agency estimated that less than 30% of UCO in the region is currently recovered for industrial use.

Moreover, the aviation industry’s demand for SAF far outstrips what UCO alone can provide. Globally, SAF production reached only 600 million liters in 2023, a fraction of the 300 billion liters of jet fuel consumed annually. Even if every drop of used cooking oil in Southeast Asia were converted to SAF, it would still fall short of meeting regional needs. Competing demands from other sectors, such as biodiesel for road transport, further strain supply. In Malaysia, for example, a significant portion of UCO is already diverted to ground transport fuel, leaving little for aviation.

Cost is another barrier. Producing SAF from used cooking oil is currently two to three times more expensive than conventional jet fuel. Refining processes are energy-intensive, and infrastructure for large-scale production remains limited in the region. While governments in Singapore and Thailand have offered subsidies and tax incentives to encourage SAF adoption, airlines—many still recovering from pandemic-era losses—remain hesitant to absorb the higher costs. “We want to go green, but the economics have to make sense” said a senior executive from a low-cost carrier based in Kuala Lumpur.

Regulatory and Ethical Concerns

Beyond logistics, regulatory frameworks pose a significant hurdle. In many Southeast Asian countries, policies governing the collection, trade, and processing of used cooking oil are either underdeveloped or inconsistently enforced. Indonesia, for instance, has struggled with illegal UCO exports, where waste oil is smuggled to neighboring countries for profit rather than processed locally. Such practices not only undermine domestic SAF production but also raise concerns about traceability and quality control.

Ethical questions also loom large. Critics warn that an over-reliance on UCO could inadvertently fuel unsustainable practices. If demand for used oil skyrockets, there is a risk that virgin oils—such as palm oil, already linked to deforestation in Indonesia and Malaysia—could be fraudulently labeled as “used” to meet quotas. Environmental groups have called for stricter certification systems to ensure that SAF feedstocks are genuinely sustainable. “Without robust oversight, we could end up replacing one environmental problem with another” cautioned an activist based in Jakarta during a recent webinar on green fuels.

Additionally, the focus on UCO might divert attention from other promising SAF feedstocks, such as agricultural residues or synthetic fuels produced using captured carbon. Experts argue that a diversified approach, rather than a singular reliance on used oil, is essential for long-term sustainability in aviation.

Global Context and Regional Opportunities

Southeast Asia’s challenges with UCO-based SAF mirror global trends. In Europe, where SAF mandates are more advanced, airlines face similar supply and cost constraints. The European Union has set a target for 2% of aviation fuel to be sustainable by 2025, rising to 70% by 2050, but production capacity lags behind. Meanwhile, in the United States, companies like Delta and United Airlines have invested heavily in SAF, yet still rely on limited UCO supplies supplemented by other feedstocks.

For Southeast Asia, the path forward may lie in regional cooperation. Initiatives like the ASEAN Sustainable Aviation Fuel Roadmap, launched in 2023, aim to harmonize policies and build shared infrastructure for SAF production. Singapore has positioned itself as a leader, with plans to establish a regional SAF hub by 2030. Thailand, too, is exploring public-private partnerships to scale up UCO collection, with pilot projects in Bangkok and Chiang Mai showing early promise.

Financial mechanisms could also play a role. Carbon offset programs and green bonds, already gaining traction in Malaysia and Vietnam, could help offset the higher costs of SAF for airlines. At the same time, consumer willingness to pay a premium for low-carbon flights—evident in surveys conducted in Singapore and Thailand—offers a potential revenue stream to fund the transition.

Innovations on the Horizon

Technological advancements may yet tip the balance in favor of UCO-based fuels. Researchers in Indonesia are experimenting with more efficient refining techniques that could lower production costs, while startups in Singapore are developing blockchain-based platforms to track UCO from kitchen to cockpit, ensuring transparency. Such innovations, if scaled, could address both supply chain inefficiencies and ethical concerns.

Airlines, too, are stepping up. Regional carriers like Garuda Indonesia and Thai Airways have committed to increasing SAF usage in their fleets over the next decade, with test flights already completed using UCO blends. These efforts, while small in scope, signal a growing recognition that sustainable aviation is not just an environmental imperative but also a competitive advantage in a market increasingly shaped by eco-conscious travelers.

Looking to the Skies

As the aviation industry in Southeast Asia and beyond charts a course toward net-zero emissions, used cooking oil offers a tantalizing glimpse of a greener future. Yet, the road—or rather, the flight path—remains fraught with turbulence. Supply shortages, high costs, regulatory gaps, and ethical risks all threaten to stall progress. For now, the question lingers: can this humble kitchen waste truly fuel the skies, or will it remain a niche solution in a much larger puzzle? Only time, and concerted regional effort, will tell.