Turning Waste Oil into Jet Fuel: A Conversation with EcoCeres’ CEO Matti Lievonen

By Matti Lievonen 19 December, 2025

Jet fuels made from recycled waste oils can cut emissions by up to 90%! HK-bred EcoCeres is globally renowned in renewable fuel innovation & CEO Lievonen says Asia holds the key to scaling up

Aviation is highly carbon intensive and remains one of the most difficult sectors to decarbonise, especially as demand for air travel continues to grow. Nevertheless, the industry aims to reach net-zero by 2050 and expects that Sustainable Aviation Fuels (SAF) will contribute 65% of those efforts.

Based in Hong Kong, EcoCeres is the second largest producer of SAF in the world and has become a global leader in renewable fuels innovation. We speak to its CEO Matti Lievonen on the potential for scaling up SAF production and what that means for the future of flying.

CWR: Can you tell us about EcoCeres SAF? How does it compare to conventional jet fuels as well as other biofuels in the market?

Matti Lievonen (ML): EcoCeres Sustainable Aviation Fuel (SAF) is an advanced renewable jet fuel made entirely from waste-based feedstocks such as used cooking oil (UCO), animal fats, and agricultural residues. It delivers up to a 90% reduction in lifecycle greenhouse gas emissions compared to conventional fossil jet fuel, while maintaining full compatibility with existing aircraft and fuelling infrastructure.

EcoCeres operates some of the world’s first ISCC-CORSIA Plus certified SAF facilities, including in Jiangsu, China and Johor, Malaysia adding another 420,000 tonnes of capacity by the end of 2025. The company’s proprietary hydroprocessed esters and fatty acids (HEFA-SPK) technology converts waste oils into high-quality jet fuel that meets ASTM D7566 Annex 2 aviation standards.

SAF recycles CO2 already present in the carbon cycle…

…reducing up to 90% emissions

EcoCeres’ SAF is nearly identical to fossil-based jet fuel and can be used as a “drop-in” substitute without engine modifications or infrastructure changes. The key difference lies in carbon intensity: while traditional jet fuels emit CO₂ that adds to atmospheric greenhouse gases, SAF recycles CO₂ already present in the carbon cycle, achieving up to 90% lower lifecycle emissions.

Unlike biofuels derived from food crops, EcoCeres SAF relies exclusively on waste-based feedstocks, avoiding deforestation and food security concerns. Additionally, our SAF is certified deforestation-free, traceable, and scalable through advanced supply chain systems aligned with EU Renewable Energy Directive II and U.S. Renewable Fuel Standard compliance.

CWR: Given that 9 out of 10 of the world’s busiest flight routes are in the APAC region, is Asia taking the lead in decarbonising aviation?

ML: We believe Asia is emerging as a major force in decarbonizing aviation, driven by rapid policy developments, technological innovation, and expanding SAF investments.

With nine of the world’s ten busiest flight routes based in APAC, the region faces immense pressure to curb aviation emissions. Governments and industry leaders are responding aggressively. South Korea introduced Asia’s first legally binding SAF blending mandate in 2025, requiring 1% SAF use by 2027 and up to 10% by 2035. Singapore will follow with its own mandate in 2026, starting at 1% of departing flights and scaling to 3–5% by 2030. Meanwhile, Japan has committed to a 10% SAF substitution target by 2030, while China aims to produce 50,000 tonnes annually by mid-decade.

SE Asia is positioning itself as a global SAF hub…

…with Malaysia & Indonesia increasing SAF production capacity

Southeast Asia is positioning itself as a global SAF hub. The EcoCeres plant in Johor, Malaysia, for example, will be the country’s first facility to produce SAF. Indonesia is also building new refining capacity using agricultural and waste-based feedstocks. Across the region, we have also partnered with Air New Zealand, Cathay Pacific, and Qantas to supply them with SAF.

Although Europe and North America maintain more mature SAF mandates, Asia’s growth rate in SAF policy adoption is the fastest globally. The Association of Asia Pacific Airlines has set a joint target for members to reach 5% SAF utilization by 2030, aligning with ICAO’s net-zero 2050 goals. If current momentum continues, APAC could contribute up to 40% of global SAF production by 2050.

CWR: It’s exciting that Hong Kong’s recent policy address sets out their intention to develop a SAF industry chain in the Greater Bay Area. How far away are we from becoming a hub for SAF?

ML: Hong Kong is moving decisively toward establishing itself as a key SAF hub, though it remains in the early stages compared to leading players such as Singapore and China’s initiatives.

2025 Policy Address supports a new SAF blending facility in HK

The 2025 Policy Address set a clear vision to build a full SAF industry chain across the Greater Bay Area (GBA), encompassing upstream feedstock collection, production plant construction, and a new SAF blending facility in Hong Kong. This strategy is designed to align with carbon neutrality goals before 2050 and meet a target SAF blend ratio for flights departing the Hong Kong International Airport by 2030.

EcoCeres has publicly committed to supporting this blueprint, highlighting Hong Kong’s potential to become a global green aviation hub through integration with Mainland supply chains and investment from the Hong Kong Investment Corporation (HKIC). Cathay Pacific likewise welcomed the government’s commitment, viewing the upcoming SAF blending facility as crucial to improving SAF availability and affordability for airlines.

Hong Kong’s Transport Secretary, Mabel Chan, recently described the city’s 2030 SAF target of 1–2% as “pragmatic and achievable,” representing an initial step toward deeper adoption and future scale-up.

GBA’s airport network uses >15mn tonnes of jet fuel annually…

…& could become a global SAF demonstration zone within 2-3 years

Cathay Pacific and aviation experts view the GBA’s dense airport network – including Hong Kong, Shenzhen, Guangzhou, Zhuhai, and Macau – as uniquely positioned to evolve into a global SAF demonstration zone within two to three years. This network offers an integrated demand base exceeding 15 million tonnes of annual jet fuel consumption – an ideal platform to pilot regional SAF production and distribution at scale.

With strong policy direction, early-stage infrastructure planning, and growing alignment among government, industry, and investors, we believe Hong Kong is well on its way to becoming a regional SAF hub by the end of this decade. Full-scale competitiveness with Singapore is expected once its blending facility becomes operational and SAF supply chains in the GBA reach commercial maturity, likely around 2028–2030.

CWR: Looking ahead, what are the major limitations for scaling up?

ML: The major limitations to scaling up SAF production and adoption lie in a combination of economic, feedstock, policy, and infrastructure challenges.

SAF is still 3-5x more expensive than conventional jet fuel

The largest barrier is cost. SAF remains three to five times more expensive than conventional jet fuel, due to capital-intensive production processes and limited economies of scale. Despite expected production growth to 2 million tonnes in 2025, SAF still accounts for less than 1% of global jet fuel demand, and airlines face an additional USD4.4 billion globally in added fuel costs this year alone. Price uncertainty also discourages long-term offtake agreements, which are essential for investment and financing new facilities.

Global feedstock constraints pose another major hurdle. The preferred HEFA (Hydroprocessed Esters and Fatty Acids) method depends on UCO and animal fats – resources that are limited and increasingly competed for by Europe and the U.S. This puts upward pressure on prices and restricts APAC producers’ access to raw materials. Additionally, emerging feedstocks like municipal waste, forestry residues, and algae remain in early-stage development and require further technological breakthroughs to scale affordably.

Europe has binding SAF blending mandates through 2040…

…but most Asian & developing markets lack mandates post-2030

Regionally inconsistent policies slow down SAF scale-up. While Europe has set clear binding targets through 2040, most Asian and developing markets lack post-2030 blending mandates, making investor confidence uneven. In Asia, experts continue to call for harmonized frameworks and long-term SAF roadmaps that establish demand certainty and de-risk capital deployment.

Building new refineries, blending terminals, and distribution infrastructure takes time and significant investment. The SAF industry is still transitioning from pilot-scale to commercial-scale plants, which means that technical reliability, supply logistics, and quality control standards are still maturing. Additionally, skilled labor shortages in advanced biofuel chemistry and operations add further constraints to expansion.

Achieving meaningful scale will require coordinated efforts across policy, industry, and finance. We believe strong government-backed revenue-certainty mechanisms and standardized feedstock systems could unlock faster scaling and close the cost gap with fossil jet fuels by the early 2030s.

CWR: What are you looking forward to in the next five years for EcoCeres and the SAF industry?

ML: We aim to accelerate both regional and global momentum for SAF by expanding production capacity, deepening partnerships, and helping shape the market conditions needed for broad adoption.

EcoCeres has already commissioned our new renewable fuels complex in Malaysia in October 2025, complementing our Jiangsu facility – currently the world’s first ISCC-CORSIA Plus–certified SAF plant. Together, these assets will position the company to supply a significant share of Asia’s SAF demand and contribute to global decarbonization targets by producing waste-based fuel that achieves up to 90% lifecycle emissions reduction compared to fossil jet fuel.

In 2025, EcoCeres delivered the first locally sourced batch of SAF…

…cutting emissions worth 10,000 roundtrip HK-London flights

EcoCeres is highly committed to support Hong Kong’s vision of building a full SAF value chain across the GBA, from feedstock collection to large-scale production and blending. The company is working closely with the HKIC, Cathay Pacific, and HSBC through a landmark partnership that delivered the first locally sourced batch of SAF earlier in 2025 – reducing emissions equivalent to 10,000 roundtrip Hong Kong–London flights.

Looking ahead, EcoCeres’ strategic focus centers on creating the conditions for sustainable industry growth: stable policy frameworks, regional feedstock resilience, and investment-friendly infrastructure. Establishing a “clear and stable market” with defined usage mandates and long-term demand visibility is essential for turning Hong Kong into a world-leading green aviation hub.

By 2030, EcoCeres aims to expand its SAF footprint across Asia, drive new waste-to-fuel innovations, and help move the industry from niche adoption to mainstream availability. The next five years will be about scaling technologies, strengthening partnerships, and proving that sustainable aviation fuels can be both commercially viable and globally impactful.

Further readings

• Green Chemistry – A New Growth Formula for Industry – There is a once in a generation opportunity to rethink the chemicals industry for sustainability says green chems expert Prof Tickner. See why he thinks this & where the investment opportunities are
• Airport Authority Hong Kong: Marine Ecology & Fisheries Enhancement Strategy – Lee, General Manager, Sustainability of Airport Authority Hong Kong talks to us about their marine ecology & fisheries enhancement strategy
• Decarbonising Shipping with Green Ammonia – Can green ammonia decarbonize shipping by 2050? A report by Verschuur & his team reveals that it can meet 60% of fuel demand by targeting just 10 ports. Get more on this and other key findings in our interview with him

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