Beyond Horizons
Trailblazing Tales from Asia
Your exclusive gateway to the latest developments across transportation and space, and most importantly, how to finance it all - debt, equity, and defi! We follow and forecast where the money’s at.
Join us as we navigate through the latest roundup to uncover key developments across the region.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**
Events
Assessing the Opportunities to Scale Aviation Decarbonization Across the Asia Pacific Region: SAF, Technologies, and Greening Airline Operations
Join me for a free webinar!
On Wednesday, July 31, I will be moderating the webinar, "Assessing Opportunities for Scaling Aviation Decarbonization in the Asia Pacific Region: SAF, Technologies, and Greening Airline Operations."
The webinar will feature a panel of industry experts who will delve into strategies and opportunities for advancing aviation decarbonization in the Asia Pacific region.
The event starts at 9am CEST / 3pm SGT / 4pm JST / 5pm AEST.
Confirmed speakers:
Hui Ling Teo, Founder, Beyond Horizons (Moderator)
Takehiro Kawahara, Aviation Specialist, BloombergNEF
Gabriel H., Chief Sustainability Officer, Asia SAF Association
Flyn van Ewijk, Regional Director – Asia Pacific, LanzaJet
The Asia Pacific Summit for Aviation Safety
The Asia Pacific Summit for Aviation Safety (AP-SAS) 2024, held from August 13 to 15 in Beijing, will gather over 450 aviation professionals and leaders from across the Asia-Pacific region and beyond.
The summit aims to advance aviation safety standards through dialogue and collaboration among regulators, airlines, manufacturers, and other industry stakeholders. The theme, "Shaping Safety Excellence: A Human-Focused Approach," emphasizes the importance of prioritizing people in safety strategies, alongside technological and procedural advancements.
AP-SAS 2024 is organized by the Flight Safety Foundation, the Civil Aviation Authority of Singapore, and the Civil Aviation Administration of China.
For the full program, visit the event agenda.
Read
Aviation Week eVTOL Forecast
Aviation Week’s latest forecast predicts a surge in the delivery of electric vertical-takeoff-and-landing (eVTOL) vehicles, with 2,000 units expected by 2030—double last year’s estimate. By 2040, deliveries are projected to reach nearly 12,000, and 33,000 by 2050. This increase reflects EHang’s recent type certification and early delivery of its EH216-S, though the forecast remains "pragmatic" due to industry challenges like battery limitations, timeline delays, and a tough fundraising environment.
The updated forecast adjusts retirement assumptions to an average lifespan of nine years, leading to an estimated in-service fleet of 25,000 eVTOLs by 2050, up from 19,000 previously. The study also includes projections for electric conventional-takeoff-and-landing (eCTOL) and short-takeoff-and-landing (eSTOL) aircraft, predicting 500 new-build units by 2030, 2,500 by 2040, and 8,000 by 2050.
The forecast categorizes the market into passenger, cargo, and "other" uses, with a predicted mix of 57% passenger, 32% cargo, and 11% "other" applications by 2050. It anticipates that the five-nine-passenger eVTOL class will eventually surpass the one-four-passenger class in deliveries, especially for cargo and "other" uses. For eCTOL/eSTOL, the four-nine-passenger class is expected to grow steadily, with an initial increase in cargo operations due to new model introductions.
The assumptions behind the forecast include steady certification progress and no major disruptive events. The forecast does not factor in potential issues like public acceptance or significant delays in ground infrastructure, suggesting that production rates will align more closely with traditional aviation rather than automotive industry standards.
Summary
Financing & Investments: KPMG Reports China Leads Asia-Pacific VC Deals with $17.4 Billion in Q2 2024; MAS Invests Up to S$100 Million in Quantum and AI Capabilities for Financial Sector; DP World Expands with 51 New Freight Forwarding Offices in Asia Pacific; DHL Unveils Largest Logistics Hub in the Philippines with Green Initiatives; UAE and Indonesia Strengthen Financial Management Cooperation; and GE Aerospace to Invest $1 Billion in Global MRO Facilities Over Five Years
Trade: EU and Singapore Finalize Digital Trade Agreement to Boost Online Trade and Data Flows
Aviation: Turkish Airlines Secures First Chinese Yuan Aircraft Financing Outside China; Seaplane Asia Orders Fourteen Jekta PHA-ZE 100 Amphibious Aircraft at Farnborough 2024; Boeing Report Forecasts Tripling of Aviation Staffing Needs by 2043 with Fastest Growth in Asia and Africa; Embraer's 2024 Market Outlook Highlights Increased Demand for Small Aircraft; and Malaysia ARCC Upgrades Rescue Communication with Frequentis Liberty-STAR IV
Environmental Sustainability: DBS and Deloitte Launch Tool to Boost SME Sustainability in Singapor; Petronas, Enilive, and Euglena to Develop Major Biorefinery in Malaysia; Airbus and Partners Launch $200M SAF Investment Fund; DHL Express and UOB Invest in Sustainable Aviation Fuel for Emission Reduction; and Japan Airlines and ENEOS Partner to Promote SAF in Japan
Advanced Air Mobility: Supernal and Sigma Partner to Develop AAM Networks in Asia; Wilbur Air to Operate 100 Integrity eVTOL Aircraft Developed by Crisalion Mobility; China's CAAC Begins Review of EHang's AOC Applications for EH216-S eVTOL aircraft; and Singapore's Aviation Regulator Suspends Drone Operations After Incident
Marine: ABS and KRISO Collaborate on SMR-Powered Ships and Floating NPPs; and MA and MPA Advance Two Consortia for Low-Carbon Ammonia Project
Space: Taiwanese Startup TiSpace Plans Suborbital Rocket Launch from Japan; and FDH Aero Partners with Sacheon to Boost South Korea’s Aerospace Industry
Financing & Investments
Global
According to a KPMG report, the Asia-Pacific region saw 2,155 venture-capital deals worth $17.4 billion in Q2 of this year, marking a 16.3% decline from the previous quarter. China led the region's venture-capital scene, accounting for six of the top ten investments, with significant funding directed towards artificial intelligence (AI), electric vehicles (EVs), and semiconductors.
Key investments included $693 million for EV maker Neta Auto and $599 million for CRRC Times Semiconductor. In AI, Zunyuan Supermarket raised $528.7 million, and generative AI company Zhipu AI secured $400 million.
Despite a cautious approach from investors, AI companies are gaining traction, driven by China's state-backed funding and strategic focus on technology sectors amid growing tensions with the US. This includes a 344-billion-yuan ($47.5 billion) fund established in May to support its semiconductor industry. Local governments are also enhancing support for AI and other critical technology areas.
💡The KPMG report suggests that while venture capital activity remains subdued, AI and EV sectors are likely to continue attracting significant investments. A potential rebound in the IPO market is anticipated for 2025 as many Chinese companies prepare to go public.
Singapore
The Monetary Authority of Singapore (MAS) is committing up to S$100 million under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to advance quantum and artificial intelligence (AI) capabilities in the financial sector.
💡The funding aims to foster quantum technology development with grants for technology centres, innovation, and cybersecurity. MAS will also enhance support for AI adoption by financial institutions, including developing AI innovation centres and addressing industry-wide issues like fraud detection.
Asia-Pacific
DP World has launched 51 new freight forwarding offices across Asia Pacific (APAC), boosting its total global offices to 161. The expansion enhances its end-to-end supply chain solutions, integrating air and ocean freight services with its extensive infrastructure network, including ports, terminals, and warehousing.
The new offices offer comprehensive logistics services, from order management and freight handling to customs clearance and bonded warehousing, all accessible through a unified digital platform supported by over 500 IT specialists.
The move aligns with APAC's rapid growth in outsourced logistics, projected to account for 40% of global contract logistics revenues by 2027.
💡DP World has also strengthened its regional logistics capabilities with a $50 million investment in the Busan Logistics Centre, the acquisition of Savan Logistics in Laos, and a new rail service in Sydney to improve connectivity and efficiency.
Philippines
DHL Supply Chain Philippines (DSCP) has inaugurated its largest logistics facility, the 50,000-square-meter Sta. Rosa Logistics Center in Laguna. The new hub is part of DSCP's €350 million expansion plan for Southeast Asia, aimed at increasing warehouse capacity by 25% by 2028.
💡The center features advanced technology, including automation and robotics, and supports green initiatives like solar panels, EV charging stations, and rainwater harvesting. It can handle 44 trucks simultaneously and is expected to be fully operational by September, serving clients in various industries.
UAE-Indonesia
The UAE and Indonesia have signed a Memorandum of Understanding (MoU) to enhance public financial management. The agreement includes collaboration on macroeconomic and fiscal policy, debt management, and climate finance. It involves knowledge exchange through study visits, training, and workshops, and establishes a joint council for effective implementation and monitoring.
💡The MoU was announced alongside eight other agreements during a state visit by Indonesian President Joko Widodo to the UAE. These include initiatives in solar energy, smart systems, peaceful nuclear energy, and the establishment of the Mohamed bin Zayed-Joko Widodo Mangrove Research Center in Bali.
Global
GE Aerospace plans to invest over $1 billion in its Maintenance, Repair, and Overhaul (MRO) and component repair facilities over the next five years.
Of this, $60 million will be allocated to facilities in Europe and the Middle East, including locations in Doha and Dubai. The investment aims to support the growing demand for CFM LEAP engines, used in popular aircraft like the Airbus A320neo and Boeing 737 MAX.
For 2024, GE will invest $250 million globally to expand facilities, upgrade equipment, and enhance safety. Investments include $65 million in U.S. facilities, $55 million in Brazil, $60 million in Europe and the Middle East, and $45 million in Asia Pacific.
💡The funding will also support the construction of a new Services Technology Acceleration Center in Ohio, set to open in September 2024, to advance service technologies and reduce aircraft downtime.
Trade
EU-Singapore
The EU and Singapore have finalized a Digital Trade Agreement to enhance online trade, support SME digital transformation, and facilitate data flows. The deal complements the 2019 EU-Singapore Free Trade Agreement and aims to streamline digital trade, reduce administrative burdens, and set rules for data flow.
Singapore, a major partner in digital trade with the EU, will benefit significantly, with €43 billion in digitally delivered services in 2022. The agreement will take effect after approval from Singapore, the EU Council, and the European Parliament.
💡A similar deal with South Korea is under negotiation, and a Data Flow Agreement with Japan has recently been implemented.
Aviation
Turkey-China
Turkish Airlines has secured Chinese Yuan denominated aircraft financing outside China, a first for any airline. The move supports the airline's currency hedging strategies and diversifies its financing portfolio.
💡The financing, obtained through AVIC International Leasing and CCB Financial Leasing, covers three Airbus A350 aircraft added to the fleet between May and July 2024.
Asia
Hong Kong-based Seaplane Asia has inked an agreement to acquire fourteen Jekta PHA-ZE 100 amphibious aircraft. The Swiss-based Jekta is developing the 19-passenger, electric-powered PHA-ZE 100, aiming for EASA CS-23 and US FAA FAR-23 certification.
The aircraft uses ten electric motors powered by batteries or hydrogen fuel cells, with an initial flight endurance of 60 minutes and a 30-minute reserve. It can operate from coastal waters, lakes, waterways, and runways using retractable wheeled landing gear.
Seaplane Asia promotes several start-ups in Southeast Asia, including Siam Seaplane (Thailand), Samra Seaplane (Cambodia), Santai Seaplane (Indonesia), and Sagana Seaplane (Philippines). The projects are still in the planning stages, with Siam Seaplane having acquired a Cessna 208EX.
💡Announced at the Farnborough 2024 Airshow, the Jekta airframes will be used for short-distance flights, island hopping, airport-to-waterfront transport, sightseeing flights, and yacht transfers.
Global
The Boeing 2024 Pilot and Technician Outlook predicts a tripling in aviation staffing demand over the next two decades, requiring nearly 2.4 million new professionals. Key needs include 674,000 pilots, 716,000 maintenance technicians, and 980,000 cabin crew members by 2043. Southeast Asia will need 60,000 new pilots, 77,000 technicians, and 97,000 cabin crew. Demand will be highest in South Asia, Southeast Asia, and Africa, with these regions seeing the fastest growth.
💡The majority of new positions will replace retiring staff, with the remainder supporting fleet expansion.
Global
Embraer's 2024 Market Outlook predicts significant demand for small aircraft over the next 20 years, with a forecast of 10,500 orders for new jets and turboprops in the sub-150-seat category through 2043.
The report highlights the increasing importance of small narrowbody aircraft, which offer operational efficiency and cost-effectiveness for medium and lower-density markets where frequent flights are essential.
Global demand includes 8,470 jets and 2,030 turboprops, valued at $640 billion. Regional growth is led by Asia Pacific, with an annual growth rate of 5.0%, expected to hold 38% of global passenger traffic by 2043. Latin America and Africa also show strong growth, while North America has the slowest rate at 2.4%.
Jet deliveries will be concentrated in North America, China & Asia Pacific, and Europe, while turboprop deliveries will be highest in China & Asia Pacific. The outlook also notes growing opportunities in the cargo aircraft market, driven by e-commerce expansion.
💡Embraer’s CEO, Arjan Meijer, emphasized the need for a mixed fleet strategy combining small and large narrowbodies to address diverse airline network needs effectively.
Malaysia
The Malaysia Aeronautical Rescue Coordination Centre (ARCC), in partnership with Mesiniaga Berhad, has implemented the Frequentis Liberty-STAR IV voice communication system across six ARCC sites. The upgrade enhances rescue communication speed and reliability.
💡Frequentis Canada facilitated the delivery, installation, and commissioning of the system at Subang, Kota Kinabalu, Miri, Kuching, Tawau, and Kuala Terengganu. The installation is the first of its kind in Malaysia and Southeast Asia.
Environmental Sustainability
Singapore
DBS and Deloitte have launched the Sustainability Accelerator Tool to help Singaporean SMEs evaluate and improve their sustainability practices. The tool, which provides industry-specific recommendations and aligns with the TCFD framework, aims to assist 1,000 SMEs in Singapore over the next year, with plans to expand regionally in 2025.
💡The tool measures maturity across four areas: Governance Framework, Sustainability Strategy, Risks & Opportunities, and Metrics & Targets. It generates a customized Sustainability Readiness Report and provides access to DBS’s ESG Ready Programme and Deloitte’s guidance.
Malaysia
Petroliam Nasional Berhad (Petronas), Enilive S.p.A, and Euglena Co., Ltd. have finalized plans to develop a biorefineryat Petronas' Pengerang Integrated Complex (PIC) in Johor, Malaysia. A joint venture will be established, with Petronas Mobility Lestari Sdn Bhd (PMLSB) and Enilive as the primary shareholders.
The biorefinery, set to begin construction in Q4 2024 and operational by late 2028, will produce sustainable aviation fuel (SAF), renewable diesel/hydrogenated vegetable oil (HVO), and bio-naphtha. It will process 650,000 tonnes of feedstock annually, including used vegetable oils, animal fats, and potentially microalgae oils.
💡The facility will utilize state-of-the-art Ecofining™ technology and be strategically located to optimize feedstock access and global shipping.
Global
Airbus, Air France-KLM Group, Associated Energy Group, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital, and Qantas Airways have launched the SAF Financing Alliance (SAFFA), a $200 million investment fund to advance SAF production.
The fund, managed by Burnham Sterling Asset Management with Airbus as the anchor investor, aims to support technologically mature SAF projects, particularly those using waste-based feedstocks. SAFFA's first investments include Crysalis Biosciences and an ethanol plant in Illinois, which will produce low carbon intensity SAF and biochemicals.
💡Partners will secure SAF offtakes from funded projects and focus on SAF eligible for RefuelEU Aviation or CORSIA certification.
Asia-Pacific
DHL Express and UOB have partnered to invest in SAF through DHL's GoGreen Plus service, aiming to reduce UOB's international parcel delivery emissions by about 200 tons of CO2e annually.
💡The initiative is part of DHL's broader goal to achieve net-zero carbon emissions by 2050, supported by SAF collaborations with bp, Neste, and World Energy.
Japan
Japan Airlines (JAL) and ENEOS Corporation have signed an agreement for the purchase and sale of SAF making ENEOS the first Japanese oil refiner to import and supply SAF to JAL.
ENEOS plans to produce SAF at its Wakayama Works and is developing an integrated system for SAF production, from raw material procurement to sales. Both companies aim to promote SAF use in Japan and support aviation industry decarbonization by establishing a domestic SAF supply chain. JAL has also initiated the JAL Corporate SAF Program, which certifies CO2 reduction achieved through SAF use for corporate customers.
💡The airline aims to replace 1% of its fuel with SAF by 2025 and 10% by 2030, sourcing SAF both domestically and internationally.
Advanced Air Mobility
South and Southeast Asia
Hyundai Motor Group’s advanced air mobility (AAM) company, Supernal, and Sigma Air Mobility have announced a partnership to develop AAM infrastructure and investments in South and Southeast Asia, with potential expansion into Southern Europe.
The collaboration aims to leverage their combined expertise to create decarbonized and accessible air mobility networks, with Sigma operating Supernal's electric vertical takeoff and landing (eVTOL) aircraft and providing related services.
💡Supernal plans to launch its eVTOL vehicle, capable of traveling 60 miles at 120 mph, by 2028. The companies will work together to identify suitable markets, engage with local governments, and establish the necessary infrastructure for AAM ecosystems.
Australia
Australian start-up Wilbur Air has announced plans to operate 100 five-passenger Integrity eVTOL aircraft, developed by Spain's Crisalion Mobility. The agreement, revealed at the Farnborough Airshow, involves pre-orders for battery-electric vehicles designed to connect a network of vertiports across Australia, including using existing locations like car parks.
Crisalion’s Integrity aircraft features a patented FlyFree propulsion system with quad-rotor units on a fixed-wing, promising improved control and reliability. The aircraft is expected to be certified and ready for service by 2030, with capabilities for passenger flights, freight deliveries, emergency services, and tourism.
💡The company plans to test a scale model later this year to evaluate new automation controls and aims to showcase a full-scale mock-up at the Paris Air Show next year. Crisalion is currently in a second phase of fundraising and seeking to double its €20 million investment, with future plans to include investors from beyond Europe.
China
EHang Holdings Limited announced that the Civil Aviation Administration of China (CAAC) has accepted the Air Operator Certificate (AOC) applications from its subsidiary, Guangdong EHang General Aviation, and its joint venture, Hefei Heyi Aviation. The acceptance initiates the review process for their business licenses and operational qualifications for pilotless passenger-carrying aerial vehicles. The CAAC has assembled a specialized review team to advance the process.
💡EHang is collaborating with the CAAC to develop new operational standards for its EH216-S eVTOLs, which will help establish a regulatory framework for pilotless aerial vehicles. Additionally, EHang recently introduced a group standard for eVTOL aircraft landing sites in China, providing technical guidelines and supporting the industry's development.
Singapore
The Civil Aviation Authority of Singapore (CAAS) has halted drone operations for H3 Dynamics Holdings and the Hexadrone TUNDRA 2 model after a crash on July 19. The drone, performing test flights at One-North, deviated from its approved area and landed on a condominium’s grounds. No injuries were reported.
+ CAAS is conducting a full investigation into the incident. One-North, designated as Singapore’s first drone estate in 2018, is intended for trialing innovative unmanned aircraft systems and commercial use cases in a controlled environment.
Marine
Asia-Pacific
DP World has launched 51 new freight forwarding offices across Asia Pacific (APAC), boosting its total global offices to 161. The expansion enhances its end-to-end supply chain solutions, integrating air and ocean freight services with its extensive infrastructure network, including ports, terminals, and warehousing.
The new offices offer comprehensive logistics services, from order management and freight handling to customs clearance and bonded warehousing, all accessible through a unified digital platform supported by over 500 IT specialists.
The move aligns with APAC's rapid growth in outsourced logistics, projected to account for 40% of global contract logistics revenues by 2027.
💡DP World has also strengthened its regional logistics capabilities with a $50 million investment in the Busan Logistics Centre, the acquisition of Savan Logistics in Laos, and a new rail service in Sydney to improve connectivity and efficiency.
South Korea
The American Bureau of Shipping (ABS) and the Korean Research Institute of Ship & Ocean Engineering (KRISO) are partnering to advance small modular reactor (SMR)-powered ships and floating nuclear power plants. ABS will focus on regulatory and standardization aspects, while KRISO will develop core technologies, including vessel designs, propulsion systems, and safety analysis frameworks. KRISO will also design a floating SMR power platform for island power supply.
In related developments, Korea’s Samsung Heavy Industries, in collaboration with Korea Hydro & Nuclear Power Corp and Seaborg Technologies, is working on nuclear power ships. HD Korea Shipbuilding & Offshore Engineering (KSOE) received approval from ABS for a floating offshore nuclear power barge.
💡Additionally, a January 2024 MOU among Lloyd’s Register, Zodiac Maritime, KSOE, and Kepco Engineering & Construction will focus on nuclear-propelled ship designs and compliance assessments for bulk carriers and container ships.
Singapore
The Energy Market Authority (EMA) and the Maritime and Port Authority of Singapore (MPA) have shortlisted two consortia for the next evaluation phase of their low- or zero-carbon ammonia project on Jurong Island.
The consortia, led by Keppel’s Infrastructure Division and Sembcorp-SLNG, include Itochu Corporation, Nippon Yusen Kabushiki Kaisha (NYK Line), and Sumitomo Corporation. They will now conduct engineering, safety, and emergency response studies. The selected lead developer will be responsible for generating 55 to 65 MW of electricity from low- or zero-carbon ammonia and facilitating ammonia bunkering.
💡The Singaporean Government aims to announce the lead developer by Q1 2025.
Space
South Korea
FDH Aero has signed a MOU with Sacheon city, South Korea, marking a key step in advancing the country’s aerospace ambitions. The MOU designates FDH Aero as the first aerospace supplier to collaborate with Sacheon, home to the newly established Korea AeroSpace Administration (KASA).
Under the agreement, FDH Aero will provide consulting services, including training seminars, site visits, and joint project development for at least two years. The partnership aims to support South Korea’s goals of landing on the moon and Mars, developing private space industries, and creating a robust global supply chain.
💡The collaboration will also contribute to the growth of over 2,000 aerospace companies and 500,000 jobs in South Korea.
Taiwan-Japan
Taiwanese startup TiSpace aims to become the first foreign firm to launch a rocket from Japan by early 2025, as reported by Reuters. Founded in 2016 by former Taiwanese space agency officials, TiSpace is awaiting final regulatory approval for a radio permit to launch its 12-meter sounding rocket.
💡The company has faced past challenges, including a failed launch attempt in Australia in 2022 due to an oxidizer leak.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**