China Airlines (CAL) and FPCC MOU on Sustainable Aviation Fuel Represents Breakthrough for Taiwanese Airline Industry

The development of Sustainable Aviation Fuel (SAF) is important to China Airlines (CAL), a Taiwan-based carrier. This year (2025), China Airlines will support the national energy policy by partnering with Formosa Petrochemical Corporation (FPCC) to purchase over 2,500 tonnes of SAF produced by FPCC. The SAF will be used to refuel China Airlines flights departing from Taipei (Taoyuan) and is expected to reduce carbon emissions by up to 6,500 tonnes. The two companies will also sign a memorandum of understanding (MOU) that will set an example by expanding SAF procurement to more than 10,000 tonnes in total over the next three years. China Airlines will support domestic SAF development directly through its action, help realize the energy transformation of the domestic airline industry, usher in a new era of sustainability in aviation, and work together to realize the goal of net zero carbon emissions by 2050.

 

FPCC produces made-in-Taiwan SAF using a co-processing method. In this process, petroleum and bio-based feedstocks, such as used cooking oil certified under ISCC CORSIA, are co-fed into existing refinery units. In 2025, the annual SAF production is expected to exceed 5,000 tonnes. The process will be further refined to improve its output and increase annual production to 50,000 tonnes by 2030. SAF will play a key role in carbon reduction in the airline industry. China Airlines and FPCC have formed a supply chain partnership to promote domestic SAF production and realize the low-carbon transportation goal. The example they set will pave the way for sustainable aviation in Taiwan.

 

SAF is also a key medium and long-term carbon reduction initiative for the airline industry. China Airlines is actively talking to and cooperating with SAF suppliers in Taiwan and overseas to continue making progress on net zero goals. As part of the SAF pilot trial conducted by the Civil Aviation Administration (CAA) of Taiwan, flight CI839 from Kaohsiung to Bangkok and flight CI220 from Taipei (Songshan) to Tokyo (Haneda) on April 23 were fueled with 40% ISCC CORSIA certified SAF. With a carbon reduction of 26.7 tonnes, this is the highest amount of SAF used by any Taiwanese carrier to date. The flights demonstrate that the domestic development of SAF is a priority for China Airlines and they represent a new milestone on the supply of SAF at Taiwanese airports.

 

Sustainability has long been promoted by China Airlines. It was not only the first airline in Taiwan to introduce SAF on ferry flights of new aircraft deliveries in 2017, but also the first Taiwan-based carrier to add SAF on a passenger-carrying commercial flight. The airline even partnered with businesses to operate the first freighter in Taiwanese history fueled with SAF, redefining the paradigm for the sustainable development of the air cargo value chain. China Airlines will continue to cooperate with local aviation fuel suppliers. Upstream/downstream vendors and customers are invited to join in the realization of carbon reduction targets for the Taiwanese airline industry, as well as the energy and sustainability transformation of the transportation industry.