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.
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Summary
Financing & Investments: Hyundai Capital Announces Expansion into Indonesia and Australia; Singapore's MVL Completes Ground-breaking RWA Tokenization Pilot Project with NFTs; and Second Sustainability Linked Loan Executed by CDB Aviation
Environmental Sustainability: Canada-ASEAN Partnership to Advance Carbon Crediting Programs in Southeast Asia; Fullerton, UNDP Showcases Sustainability Framework for Asian Private Equity Climate Investments; Malaysia Launches Energy Exchange for Cross-Border Green Electricity Sales; Singapore Introduces Maritime Energy Training Facility to Drive Cleaner Fuels Innovation; Singapore and Australia Partner on $27.29 Million Maritime Decarbonization Initiative; GAFT Wins Climate Grand Prize, Expands Operations to Singapore; Singapore Business Federation Launches Carbon Emissions Registry; IEA-GenZero Report Unveils Carbon Credit's Role in Clean Energy Transition; Philanthropy Asia Alliance Introduces Innovative Communities Model; and RMI And Global Banks Launch Guidelines to Support Aviation Decarbonization
Air Traffic Management: Singapore Gears Up for Centralized Air Traffic Management Testbed Center; and Singapore-Indonesia Expands Framework Agreements, Including Airspace Management
Aerospace: AirX and MPA Collaborate on WIG Craft Trials for Enhanced Maritime Transportation; U.S. Allocates $6.4 Billion to Boost Samsung Chip Production in Texas; and COMAC's C929 Reaches Key Development Milestone
Advanced Air Mobility: Regulatory Warning for Wanfeng Over Unclear Statements on eVTOL Telsa Partnership; Boeing's Wisk Eyes Asian eVTOL Market Entry by 2030; Eve Air Mobility Inks Deal with AirX Inc. for eVTOL Aircraft in Japan Expansion; Skyportz's New Airline Venture, Wilbur Air, Sets Sights on Electric Aircraft Operations; and Korea Aerospace Industries Partners with Eve Air Mobility for eVTOL Pylons
Finance & Investments
Indonesia
Hyundai Capital has finalized its purchase of Paramitra Multifinance, a financial firm based in Jakarta, Indonesia, in a deal worth $17.8 million. Announced on April 18, the company plans to rebrand its newly acquired subsidiary and commence operations in Indonesia by April 2025. Hyundai's strategic vision includes enhancing its funding capabilities and forging a business network in Indonesia through strategic partnerships with conglomerate Sinar Mas and Bank Shinhan Indonesia. The Indonesian arm aims to provide a range of financing solutions and customized customer services
Separately, Hyundai Capital has obtained regulatory approval from Australian authorities to provide financial services. The company is now preparing to introduce Hyundai Capital Australia, a subsidiary of Hyundai Motor Group. This new venture will concentrate on delivering financial services tailored to Hyundai vehicle owners in Australia.
💡 The new Indonesian entity will introduce a mobile app for dealers, allowing them to create quotes and undergo credit reviews on mobile devices or tablets. It will also implement a digital approval system to streamline processes and reduce processing time significantly.
Singapore
MVL, a Singapore-based blockchain mobility platform, has completed a two-year pilot project on e-vehicle Real World Asset (RWA) tokenization with non-fungible tokens (NFT). MVL's RWA NFTs blend vehicle assets and rental revenue, offering investors profits upon maturity. These NFTs incorporate real-time vehicle data such as registration, location, mileage, and rental revenue, encapsulating all vehicle rights.
💡 MVL operates TADA, Singapore's second-largest ride-sharing service, and ONiON Mobility, focusing on electric vehicle manufacturing and energy infrastructure.
China
On April 3, CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (CDB Leasing), announced the execution of a new Sustainability Linked Loan (SLL) transaction on March 26, 2024. This marks the lessor's second SLL-type transaction, following its inaugural sustainability-linked syndicated term loan issued in December 2023.
💡 Similar to the first facility, the SLL is tied to Sustainability Performance Targets (SPTs) based on three Key Performance Indicators (KPIs): reducing carbon intensity by focusing on fuel-efficient aircraft, increasing the share of new generation aircraft to reach 60% by 2025, and enhancing Diversity, Equity, and Inclusion (DEI) training for the workforce.
Environmental Sustainability
Association of Southeast Asian Nations (ASEAN)
The Canada-ASEAN Business Council (CABC) and the ASEAN Alliance on Carbon Markets (AACM) have announced the signing of a Memorandum of Understanding (MoU) to enhance collaboration and expedite the implementation of carbon crediting programs throughout Southeast Asia.
The MoU was formalized during the Canada & ASEAN: Building Stronger Bridges for Mutual Growth event held in Jakarta, Indonesia, on April 18. The CABC is Canada's first and only ASEAN-accredited entity.
The partnership will focus on six key areas, including Supply & Generation, Market Intermediation, Demand & Assurance, Event Collaboration, and Advocacy and Thought Leadership.
💡 By fostering a regional ecosystem, both sides aim to facilitate international partnerships, capacity building, technical assistance, executive roundtables, policy advocacy, and promotion to scale Voluntary Carbon Markets across ASEAN.
Global
Fullerton Fund Management (Fullerton) and the United Nations Development Programme (UNDP) have collaborated on a Sustainability Management Framework to steer private equity climate investments in Asia. Built upon the UNDP's Sustainable Development Goals (SDGs) Impact Standards, the framework, announced April 17, offers private equity firms a structured pathway to realize their net zero objectives.
💡 The Framework assists private equity investors in integrating sustainability and SDGs into their strategy, management, transparency, and governance to reach decarbonization goals.
Malaysia
The Malaysian government has given the green light to establish the Energy Exchange Malaysia (ENEGEM) for cross-border sales of green electricity to neighboring countries. Announced April 15, the transactions will operate under the guidelines outlined in the latest "Guide for Cross-Border Electricity Sales (CBES)" issued by the Energy Commission.
The Ministry of Energy Transition and Water Transformation (PETRA) is extending invitations to interested and eligible parties to participate in the inaugural auction, which will facilitate the purchase of green electricity from Malaysia's electricity supply system, destined for supply to Singapore through the ENEGEM Platform.
The auction process for the cross-border sales of green electricity will kick off with a pilot project generating 100 megawatts (MW), leveraging the existing interconnection between Singapore and Peninsular Malaysia.
💡 Starting from April 16, 2024, interested Renewable Energy (RE) Bidders can register their intention to participate either through the Ministry of Energy Transition and Water Transformation (PETRA) or the Single Buyer's website.
Singapore
Singapore is establishing the Maritime Energy Training Facility (METF) to train international maritime personnel in using cleaner fuels like methanol and ammonia. The initiative, announced during the opening of Singapore Maritime Week, aims to prompt industry investments in related training facilities and solutions, positioning Singapore as a hub for maritime energy innovation.
💡 Teo Eng Dih, chief executive of the Maritime and Port Authority of Singapore has signed a letter of intent with 22 industry partners, including international organizations, classification societies, unions, and institutes of higher learning, to establish the facility.
Singapore-Australia
Singapore and Australia are collaborating on a $27.29 million (US$20 million) project aimed at accelerating the decarbonization of their maritime sectors. Dubbed the Australia-Singapore Initiative on Low Emissions Technologies (ASLET) for maritime and port operations, this endeavor will be led by the Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia's national science agency, in partnership with the Maritime and Port Authority of Singapore (MPA).
💡 The program aims to develop innovative solutions, enhance adoption rates for zero or near-zero greenhouse gas emission technologies, and explore collaboration opportunities between Australia and Singapore in green shipping and port infrastructure projects.
Singapore
GAFT (Green Air Fuel Technology), a clean aviation fuels venture originating from the Netherlands, clinched the climate grand prize at The Liveability Challenge 2024 during Ecosperity Week in Singapore, held from April 15 to 17. This annual sustainability innovation challenge is presented by the Temasek Foundation and organized by Eco-Business.
💡 In a bid to expand its operations, GAFT is gearing up to set up production facilities for its alternative fuel in Singapore. This move is part of the company's strategy to capitalize on opportunities identified through The Liveability Challenge, which aims to encourage foreign company participation in Singapore's sustainability initiatives.
Singapore
The Singapore Business Federation (SBF) launched a carbon emissions registry on Apr 15 during the opening of Ecosperity Week 2024. The Emission Factors Registry, a collaboration between SBF, Agency for Science, Technology and Research (A*STAR), PricewaterhouseCoopers (PwC), and Singtel, aims to simplify and enhance local businesses' tracking and reporting of their carbon emissions.
Supported by the Ministry of Trade and Industry and the Ministry of Sustainability and the Environment, the registry provides a database of emission factors and converts operational data into corresponding greenhouse gas emissions, covering areas such as transportation, water, general waste, and energy.
💡 Phased development will see initial baseload data available by year-end, with ongoing updates based on industry consultations and demand. The registry complements existing reporting tools, supporting enterprises in automating their sustainability reporting process.
Global
The International Energy Agency, in collaboration with investment platform company GenZero, unveiled a new report on April 16, focusing on the role of carbon credits and a combined approach of public and private policies to propel the transition towards clean energy.
Entitled "The Role of Carbon Credits in Scaling Up Innovative Clean Energy Technologies," the report projects that by the early 2030s, an annual investment of USD 4.5 trillion will be necessary to ramp up deployment across various clean energy technologies and infrastructure, compared to USD 1.8 trillion in 2023.
💡 As of April 2024, specific methodologies for issuing carbon credits from Sustainable Aviation Fuel (SAF) projects have yet to be developed. Nevertheless, Gold Standard has outlined plans to create a crediting methodology for fuel switching in aviation.
Asia
The Philanthropy Asia Alliance (PAA), a Temasek Trust initiative, announced its Communities model today to foster collaborative philanthropy in Asia. Inspired by and co-developed with PAA members, this model aims to scale impact efficiently across geographies. Members and partners joining a Community can combine strengths to address climate, health, and education challenges comprehensively, diversify funding, and replicate successful pilots globally. Each Community, aligned with PAA’s mandates, is led by Community Pioneers who will shape and fund its work.
💡 The first three Communities launching at the Philanthropy Asia Summit (PAS) 2024 include Blue Oceans, Sustainable Land Use, and Holistic & Inclusive Education, with Community Pioneers committing S$40M initially
Global
On April 4th, US-based Rocky Mountain Institute (RMI) in collaboration with major global banks such as BNP Paribas, Citi, Crédit Agricole CIB, Societe Generale, and Standard Chartered, introduced the Pegasus Guidelines - a voluntary climate-aligned finance framework for the aviation sector.
The guidelines aim to assist banks in autonomously assessing and reporting the emissions intensity and/or climate alignment of their aviation lending portfolios to a 1.5°C scenario.
💡 The Pegasus Guidelines emphasize collaboration among financial institutions, airlines, policymakers, customers, airports, fuel producers, and NGOs to foster industry decarbonization.
Air Traffic Management
Singapore
Singapore has revealed plans to establish a centralized command center, bringing together air traffic controllers, data scientists, and meteorological specialists. Announced during the 63rd International Federation of Air Traffic Controllers' Associations (Ifatca) annual conference, held from April 15th to 19th, the initiative led by the Civil Aviation Authority of Singapore (CAAS) aims to enhance air traffic management. It will serve as a testbed in response to the ongoing rise in global air passenger traffic post-Covid-19.
💡 Leidos Holdings, Inc. (LDOS) recently opened an Air Traffic Management (ATM) Research and Collaboration Center in Singapore. Using Leidos' Skyline-X platform, the center aims to improve runway operations and international traffic management technologies, providing solutions to the Civil Aviation Authority of Singapore (CAAS) and Air Navigation Service Providers in the Indo-Pacific region.
Singapore-Indonesia
Singapore and Indonesia's agreements on air space management, defense, and extradition, known as the Expanded Framework, took effect on Mar 21. Signed during a leader's retreat in Bintan in Jan 2022, Indonesia ratified the FlightInformation Region (FIR) agreement in Sep and the remaining defence and extradition agreements in Dec. Under the FIR agreement, Indonesia delegates air navigation services provision in portions of the Jakarta FIR to Singapore. The agreement, which can be extended by mutual consent, is valid for 25 years.
💡 The agreement addresses Indonesia's longstanding aspiration to oversee the FIR above the Riau islands. Singapore has managed this airspace since 1946 under the mandate of the International Civil Aviation Organization (ICAO).
Aerospace
Singapore
ST Engineering's joint venture, AirX, will partner with the Maritime and Port Authority of Singapore (MPA) to trial its AirFish Wing-in-Ground (WIG) craft in Singapore. The trials, set to begin in the third quarter of 2024, aim to demonstrate the potential of WIG technology in maritime transportation and logistics.
💡 MPA will ensure minimal disruption to port operations and collaborate on establishing an Engineering and Certification Centre of Excellence for WIG in Singapore. AirX will seek Approval in Principle (AiP) from a classification society to certify the WIG craft for commercial operations.
South Korea-USA
On April 16, the Biden administration announced that it will allocate up to $6.4 billion in grants to South Korea's Samsung to enhance its chip production in central Texas, as part of a broader initiative to strengthen U.S. chipmaking, according to the Department of Commerce. The funding, sourced from the 2022 Chips and Science Act, will support the establishment of two chip production facilities, a research center, and a packaging facility in Taylor, Texas, as previously reported by Reuters. The funding will also facilitate the expansion of Samsung's semiconductor facility in Austin, Texas.
💡 The initiative aims to increase chip output for the aerospace, defense, and automotive sectors, contributing to national security objectives.
China
China's domestically developed C929 widebody passenger jet has reached a pivotal development stage, marking the finalization of its technical blueprint, according to COMAC as reported by media outlet CNA. This update follows speculation about Russia's withdrawal from the partnership to develop the aircraft, previously named the CR929. COMAC's marketing director Zhang Xiaoguang also mentioned that this stage would be followed by the design and manufacturing of systems and components.
💡 Last month, Li Dongsheng, COMAC’s chief engineer of composite materials, informed the Hangzhou-based Dushikuaibao newspaper that the C929 would utilize over 50 percent carbon fiber composite materials and 15 percent titanium alloy in its construction.
Advanced Air Mobility
China
On April 19, automotive supplier Wanfeng Auto Holding Group was issued a regulatory warning for unclear statements regarding an eVTOL partnership with Tesla. The Zhejiang Securities Regulatory Bureau issued a warning letter citing violations of information disclosure regulations. Wanfeng clarified the rumors on April 20, denying any partnership with Tesla and revealing a Chinese auto original equipment manufacturer as their eVTOL partner.
+ Separately, Wanfeng was issued administrative penalties from the Xinchang County Emergency Management Bureau for a fatal workshop explosion in December.
Asia
U.S. aircraft manufacturer Boeing is planning to enter the eVTOL market in Asia by 2030, introducing its fully-owned subsidiary, Wisk. The company aims to address the demand for rapid, short-distance travel in the region's traffic-congested cities.
💡 The information was revealed by Boeing's Chief Technology Officer, Todd Citron, to Asia Nikkei.
Japan
On April 17, Eve Air Mobility, a subsidiary of Brazil’s Embraer, announced a letter of intent with AirX Inc., Japan’s prominent public helicopter air charter service. The agreement involves a firm order of up to 10 electric vertical takeoff and landing (eVTOL) aircraft, with an option for an additional 40 eVTOL.
💡 The partnership aims to bolster the ongoing development and expansion of eVTOL operations in Japan.
Australia
Australian vertiport company, Skyportz, has launched a new airline subsidiary named Wilbur Air, aiming to operate electric and hybrid aircraft from its future vertiports. The airline start-up will have priority access to the Skyportz vertiport network and collaborate with various aircraft partners to offer short- and long-range passenger transport as well as heavy-lift drone deliveries.
Skyportz’s initial partner, Electra.Aero from the US, will supply Australia's first fleet of 100 electric short takeoff and landing (eSTOL) aircraft. Skyportz had previously announced a partnership with Electro.Aero, to develop a "vertiport in a box" solution.
💡 Skyportz has initiated a retail fundraising campaign for smaller investors, regulated by the Australian Securities & Investments Commission. The company is welcoming investments from individuals outside Australia.
South Korea
Eve Air Mobility has selected Korea Aerospace Industries (KAI) as the supplier for its eVTOL pylons. Pylons are crucial components of the airframe, providing support for the aircraft's electric power units and eight lift propellers.
💡 Announced April 14, the agreement signals KAI's official debut in the advanced air mobility (AAM) market.