JAKARTA – A new collaboration between Airbus’s Singapore branch and Indonesian researchers to develop biomass-based sustainable aviation fuel (SAF) has put a spotlight on the potential of Indonesia’s vast biomass reserves. While the partnership holds significant promise for the future of aviation, it also raises critical questions for adjacent industries, particularly the burgeoning biochar sector.

Airbus aims to source up to 100 million tonnes of biomass annually from Indonesia, collaborating with Bogor Agricultural University (IPB) to map out supply chains and factory locations. This massive demand could create a dual-purpose opportunity for biomass, as the pyrolysis process used to produce bio-oil for SAF also yields biochar as a co-product. This synergy could allow biofuel producers to generate a second, valuable revenue stream while simultaneously creating a stable, high-volume supply of biochar for agricultural and environmental applications.

However, the sheer scale of Airbus’s ambition could also pose a significant challenge to the biochar industry. The partnership is focused on securing biomass from sources like empty palm fruit bunches and rice straw—feedstocks that biochar producers also rely on. With aviation giants entering the market and seeking to secure 100 million tonnes of material, a more established and financially powerful biofuel industry could create intense competition for feedstock, potentially driving up costs and limiting access for smaller biochar-focused businesses.

As Indonesia moves to establish itself as a key SAF producer, supported by government initiatives and the state-owned energy giant Pertamina, the biochar industry must now consider how it will compete for resources. This new dynamic could force biochar producers to innovate in feedstock acquisition, perhaps by focusing on niche waste streams or developing stronger local partnerships to secure their supply, ensuring the sector’s continued growth amidst the rise of a powerful new player in the bioenergy landscape.

SOURCE: Airbus partners with Indonesian researchers to develop biomass-based aviation fuel

  • Ralph Green is the Business Editor for Biochar Today, providing daily news posts, in-depth industry briefings and blog content. He covers all things market and industry focused, bringing a background in agri-tech and a love for translating high level sustainability theory and trends into on-the-ground results and communications.


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