The Philippines is exploring the potential of coconut-based Sustainable Aviation Fuel (SAF) as the country continues to face volatile global fuel prices and successive domestic oil price increases. In a move aimed at advancing green energy and supporting the aviation sector’s transition to lower-carbon fuels, the Philippine Coconut Authority (PCA) has partnered with Island Skies Alliance (ISA) to study the feasibility of producing SAF from coconut feedstocks.
On 16 March 2026, the two organizations signed a Memorandum of Understanding (MOU) that initiates efforts to develop aviation fuel derived from Non-Standard Coconuts (NSC) — coconuts that do not meet food-grade or export quality standards. These so-called “reject” coconuts are typically underutilized in the traditional coconut supply chain. By converting them into sustainable aviation fuel, stakeholders hope to unlock a new value stream for the coconut industry while contributing to the aviation sector’s decarbonization goals.
The collaboration focuses on transforming these non-standard coconuts into a traceable, low-carbon fuel source for aircraft. The approach aims to address two critical issues simultaneously: reducing the aviation industry’s reliance on fossil-based jet fuel and providing coconut farmers with an additional income stream that does not compete with food supply.
As part of the agreement, the partnership will begin with a pre-feasibility study to determine the technical, logistical, and economic viability of producing SAF from coconut feedstocks in the Philippines. The study will also examine whether the proposed supply chain can meet the requirements of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) established by the International Civil Aviation Organization. Compliance with CORSIA standards is essential for ensuring that sustainable aviation fuels deliver measurable reductions in lifecycle carbon emissions.
Officials emphasized that the initiative is designed to avoid any negative impact on food security. Only coconuts that fail to meet food-grade or export specifications will be used for fuel production. This ensures that coconuts intended for food consumption and other traditional uses remain unaffected, while still maximizing the economic value of coconut harvests.
The memorandum establishes a two-year framework for cooperation between the PCA and ISA. During this period, the organizations will work together on technical assessments, institutional collaboration, and industry engagement to support the development of a responsible and sustainable SAF ecosystem in the Philippines.
If proven viable, coconut-based SAF could play an important role in helping the aviation sector reduce its carbon footprint. Sustainable aviation fuel is widely seen as one of the most promising pathways for lowering emissions from air travel, particularly for long-haul flights where electrification remains impractical.
Beyond its environmental benefits, the initiative could also bring economic opportunities to coconut-producing communities across the country. By creating a new market for non-standard coconuts, the program may help increase farmers’ incomes and encourage broader utilization of the Philippines’ vast coconut resources.
The collaboration reflects a broader effort to diversify the applications of coconut products beyond traditional uses such as food, oil, and copra. By tapping the aviation sector’s growing demand for sustainable fuels, the Philippines is positioning its coconut industry as a potential contributor to global climate solutions while strengthening the resilience of one of the country’s most important agricultural sectors.