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.*
Announcment
I’m excited to announce that I’ll be speaking at the upcoming Growth Frontiers Conference, part of the Airline Economics Conference in London.
Join me as I share insights on sustainability-linked loans in the aviation industry!
This year's event will take place from September 9-10. The delegate pass grants access to the conference at the Central Hall Westminster, as well as to all associated events, including the Aviation Finance & Leasing School (sponsored by KPMG), a Networking Reception, and entry to the Airline Economics Pub at the Westminster Arms.
Learn more about the event here!
Read
Sustainable Feedstock Assessment For Sustainable Aviation Fuel Production In Southeast Asia
The report, Sustainable Feedstock Assessment for Sustainable Aviation Fuel Production in Southeast Asia, published as part of the "Decarbonising Aviation Sustainably in Southeast Asia" programme led by the Roundtable on Sustainable Biomaterials (RSB), assesses sustainable feedstock availability for SAF production in Southeast Asia, with a focus on bio-based resources such as agricultural residues, sugars, and municipal waste.
Using the RSB's sustainability framework, the study also evaluates associated sustainability risks and outlines key policy and investment opportunities.
According to the report, Southeast Asia could supply 12% of the world's sustainable SAF demand by 2050. The region has the capacity to produce 45.7 million tonnes of SAF, which could cover all jet fuel needs in the region if not exported. This potential is driven by the region's abundant bio-based feedstock resources.
The findings suggest significant opportunities for local SAF production and a need for policy discussions on developing an in-country SAF industry.
The Clean Economy Agreement
The Clean Economy Agreement, signed on June 6, aims to boost regional cooperation on clean energy and sustainability within the Indo-Pacific region. Key components include eight Cooperative Work Programmes (CWPs) focusing on hydrogen, carbon markets, clean electricity, sustainable aviation fuels, workforce development, emissions intensity accounting, e-waste management, and small modular reactors.
It also introduces two major financing initiatives: a US$1.2 billion Climate Fund for climate mitigation and adaptation, and the IPEF Catalytic Capital Fund, which seeks to catalyze up to US$3.3 billion in private investment for clean economy infrastructure projects.
Lifetime Emissions from Aircraft Under a Net-zero Carbon Budget
The study titled "Lifetime Emissions from Aircraft Under a Net-zero Carbon Budget” by the International Council On Clean Transportation evaluates whether current aircraft delivery projections align with a net-zero carbon target.
The study establishes a carbon budget of 18.4 billion tonnes for the aviation sector, derived from four industry decarbonization roadmaps. It models lifetime CO2 emissions from the 2023 global fleet and new aircraft deliveries through 2042 under three scenarios: a baseline business-as-usual scenario, an optimistic scenario using sustainable aviation fuels (SAFs), and a more optimistic scenario combining SAFs with fuel efficiency improvements. The study also examines how different climate targets (1.5°C and 2°C) affect this carbon budget.
To meet climate goals, all new aircraft delivered between 2032 and 2037 must be net-zero, either as zero-emission planes (ZEPs) or those using 100% low-carbon SAFs. This means manufacturers need to achieve net-zero emissions around 15 years before airlines. Post-2037, new aircraft must run on 100% SAFs, hydrogen, or electricity, or have their emissions fully offset through large-scale carbon removal to align with climate goals.
Public Consultation On Proposed Implementation Of Broadcast Remote Identification For Unmanned Aircraft
The Civil Aviation Authority of Singapore (CAAS) has launched a month-long public consultation to gather feedback on the proposed plan for implementing Broadcast Remote Identification (B-RID) for unmanned aircraft (UA) in Singapore. The consultation, running from September 2 to October 1, 2024, will help finalize the implementation strategy.
Starting December 1, 2025, CAAS will require all UAs weighing over 250 grams to be equipped with B-RID, with exceptions for UAs operated indoors or those using the FlyItSafe app under an Operator Permit.
B-RID acts as a “digital license plate” using Wi-Fi and Bluetooth to transmit the UA’s position, serial number, operator location, and identification number. The requirement aims to enhance aviation and public safety in Singapore.
The proposed plan includes covering the cost of B-RID modules, including installation, for eligible UA owners who apply between January 1 and March 31, 2025. Those who miss this window will need to purchase and install the module at their own expense. CAAS will also provide educational materials to assist users in purchasing and installing B-RID modules.
Feedback can be submitted through the REACH website from September 2 to October 1, 2024.
Summary
Financing & Investments: HKMA Launches Project Ensemble Sandbox to Advance Asset Tokenization; UK-India Infrastructure Financing Bridge Launched; Vaisala Secures €25 Million Contract for Indonesian Airport Weather Systems; Thailand Eases Digital Asset Payment Restrictions, Expands Sandbox Access; SpiceJet Restructures $97 Million in Dues with Carlyle Group; and Vietnam Eyes International Financial Centre (with UAE Support
Environmental Sustainability: Malaysia Unveils Aviation Decarbonization Blueprint; LanzaTech and SEKISUI Expand Waste-to-Ethanol Project in Japan; China Appoints Advisory Committee to Develop Sustainability Reporting Standards; and Korean Air Begins Using Domestic SAF for First Time
Aviation: CAAS Launches International Aviation Lab to Innovate Airport Operations Globally; CAAS and Transport Canada Sign Airworthiness Certification Agreement; Air India Begins Construction of Major MRO Facility in Bengaluru; PTDI Secures Aircraft Deals with DRC and Senegal; and IATA Criticizes New Zealand's Increased Tourism Levy
Advanced Air Mobility: DGCA Issues Guidelines for Vertiports; China’s INFLYNC Secures Angel Round Funding; Vertaxi to Complete UAV Rescue Platform Project in Guangdong; and SkyDrive Partners with Osaka Metro to Advance eVTOLs, Completes Series C Funding Round
Artificial Intelligence: ST Engineering Launches Einstein.AI Deepfake Detection Tool; Australia Plans New AI Rules for Human Oversight and Transparency; and AI Falls Short in Document Summarization, Government Trial Reveals
Marine: Wärtsilä Wins Tender for Singapore's Next Generation Vessel Traffic Management System; LR and KRISO Partner to Advance Marine Autonomous Systems; Hanwha Ocean Secures First U.S. Navy MRO Contract; and Mammoet Partners with Samyang Marine to Boost South Korea's Offshore Wind Industry
Space: China’s Shenlong Spacecraft Completes Third Orbital Mission; and Senegal Joins China's ILRS Moon Base Project as a New Member
Financing & Investments
Hong Kong
On August 28, the Hong Kong Monetary Authority (HKMA) launched the Project Ensemble Sandbox to advance asset tokenization. This initiative facilitates interbank settlements using experimental tokenized money, focusing on fixed income, liquidity management, green finance, and trade finance. The Securities and Futures Commission (SFC) will help develop a regulatory framework to support market growth.
💡The HKMA also plans to collaborate with the BIS Innovation Hub and the CBDC Expert Group to further the Sandbox’s goals and enhance Hong Kong's role as a leading financial center.
UK-India
The City of London Corporation and the National Institution for Transforming India (NITI Aayog) have established the United Kingdom-India Infrastructure Financing Bridge (UKIIFB) to enhance infrastructure investment in India. This initiative will utilize the United Kingdom's expertise to facilitate sustainable infrastructure funding. The committee's goals are to accelerate international private investment in Indian infrastructure, address investment barriers, and develop best practices.
💡Initial projects include national highways, regional rapid transport, and renewable energy.
Indonesia
Vaisala has signed a €25 million contract with Indonesia's BMKG to modernize weather systems at 14 airports, marking its largest aviation weather project. The contract includes deploying AviMet Automated Weather Observing Systems (AWOS) to eight airports, and wind shear alert systems to four airports. The project will also integrate the SILAM model for volcanic ash cloud tracking.
💡Funded by the Finnish Public Sector Investment Facility, the project is set to commence in 2025.
Thailand
Starting September 6, Thailand's Securities and Exchange Commission (SEC) will relax restrictions on digital asset payments, allowing digital asset businesses to join the Bank of Thailand’s Programmable Payment Sandbox. This follows positive feedback from a July public hearing. The updated regulations expand service scopes for digital asset firms and introduce new operators like custodial wallet providers.
💡The SEC has also updated the list of approved cryptocurrencies for transactions within the sandbox, aiming to foster innovation in digital finance.
India
India's SpiceJet announced a restructuring plan to convert approximately $97 million of its dues to Carlyle Group's commercial aviation investment arm into equity and debentures. This restructuring is part of the budget airline's efforts to stabilize its operations amid ongoing financial difficulties. Under the plan, SpiceJet will issue $30 million worth of shares to Carlyle and transfer $20 million in compulsorily converted debentures from its cargo subsidiary, SpiceXpress. The restructuring will also adjust SpiceJet's aircraft lease obligations from about $137.68 million to $97.51 million.
💡The move comes as the Indian aviation watchdog has placed SpiceJet under enhanced surveillance due to operational deficiencies revealed in a recent audit. Last year, SpiceJet undertook a similar restructuring with Carlyle Aviation.
Vietnam
Vietnam's Prime Minister Pham Minh Chinh has urged UAE support for establishing an International Financial Centre (IFC) in Ho Chi Minh City, during a meeting with UAE's Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi, on August 26. The initiative, backed by UAE corporations, aims to bolster Vietnam's financial infrastructure. The Ministry of Planning and Investment is finalizing plans for the IFC, which will be developed in three phases from 2025 to 2035.
💡Despite past setbacks, including withdrawn US investments, global support from Hong Kong, Standard Chartered, and TheCityUK is fostering optimism. The IFC is expected to enhance Vietnam's financial market and attract international capital.
Environmental Sustainability
Malaysia
Malaysia launched its Malaysia Aviation Decarbonization Blueprint (MADB), focusing on a four-pronged strategy to reduce aviation sector carbon emissions. The strategy includes advancements in aircraft technology, operational improvements, the adoption of SAF, and carbon offsetting, aligning with International Civil Aviation Organization (ICAO) standards. The Ministry of Transport (MOT) will oversee the blueprint's implementation, with various ministries supporting its development.
💡The Ministry of Plantation and Commodities (MPC) will lead the national SAF blending mandate.
Japan
LanzaTech and SEKISUI Chemical are partnering to scale up waste-to-ethanol plants in Japan. Utilizing LanzaTech’s technology, the two sides aim to convert municipal and industrial waste into ethanol, which can then be used for various products, including SAF. The first commercial plant is set to produce 10-12 kilotons of ethanol annually.
💡The initiative builds on a decade of successful joint projects and aims to address Japan’s significant waste management challenges while creating local jobs and supporting sustainability efforts.
China
On September 4, the China’s Ministry of Finance appointed 62 members to the Advisory Committee for Sustainability Disclosure Standards, with a three-year term. China aims to establish a mandatory sustainability reporting system aligned with the International Sustainability Standards Board (ISSB) by 2030, with key sustainability and climate-related disclosure standards expected by 2027.
💡The framework’s primary goal is to guide Chinese companies in adopting a standardized approach to sustainability reporting, enhancing the comparability of environmental, social, and governance (ESG) data and improving transparency for investors, creditors, regulators, and other stakeholders.
South Korea
Korean Air has launched the use of domestically produced SAF on flight KE719 from Seoul Incheon to Tokyo Haneda. This marks the first instance of a Korean flag carrier using Korean-produced SAF for commercial flights. The airline will use a 1% SAF blend on this route weekly from August 30, 2024, with plans to expand SAF usage to more routes.
💡The SAF is supplied by S-Oil and SK Energy and is certified under ICAO’s CORSIA standards.
Aviation
Singapore
The Civil Aviation Authority of Singapore (CAAS) has launched the International Aviation Lab, collaborating with major industry players including Airbus, Boeing, and Singapore Airlines. The lab, supported by a new Memorandum of Understanding, aims to innovate and transform airport operations globally. Key projects will focus on automating baggage handling, ramp activities, smart gates, and aircraft pushback and towing to enhance efficiency and reduce manual labor.
💡The lab will be managed by the International Centre for Aviation Innovation (ICAI) and will test new technologies in Singapore before international rollout.
Singapore-Canada
CAAS and Transport Canada have signed a Technical Arrangement on Airworthiness Certification (TA-AC) to streamline regulatory processes and reduce compliance costs for aviation companies in both countries. The agreement, which builds on the Memorandum of Understanding (MOU) signed in April 2019, aims to enhance collaboration by simplifying certification procedures through mutual recognition of design approvals and export/import certificates.
💡The TA-AC also facilitates the sharing of safety data to address in-service issues and provides technical assistance for design and production activities in both Singapore and Canada.
India
Air India has launched construction of a new Maintenance, Repair, and Overhaul (MRO) facility at Bangalore International Airport. The 35-acre site will enhance Air India's aircraft maintenance capabilities and support fleet expansion.
💡 The facility, featuring advanced maintenance technologies, is expected to generate over 1,200 jobs and aid more than 200 SMEs in Karnataka. Additional facilities and training programs are planned to further support the industry.
Indonesia
PT Dirgantara Indonesia (PTDI) has secured a contract to sell five Nurtanio N219 aircraft to the Democratic Republic of Congo (DRC) during the 2nd Indonesia-Africa Forum in Bali. The state-owned company also signed an agreement for two CN235-220 aircraft for the Congolese Air Force and a four-year maintenance contract for Senegalese Air Force CN235-220 aircraft.
💡The domestically produced N219, designed for challenging terrains, is expected to meet the aviation needs of various African regions.
New Zealand
The International Air Transport Association (IATA) has criticized New Zealand's decision to raise the International Visitor Conservation and Tourism Levy (IVL), calling it detrimental to the travel and tourism sector. Dr. Xie Xingquan of IATA noted that recent increases in visa fees and the IVL make New Zealand a less attractive destination, potentially delaying the recovery of visitor numbers. He highlighted that New Zealand's aviation market recovery is lagging compared to other major markets.
💡IATA had opposed the IVL increase during the public consultation, and Dr. Xie urged the government to use the funds for aviation sector decarbonization projects.
Advanced Air Mobility
India
The Directorate General of Civil Aviation (DGCA) has released new guidelines for the development and operation of vertiports, aimed at supporting electric Vertical Take-Off and Landing (eVTOL) aircraft. The guidelines, issued after extensive stakeholder consultations, outline necessary infrastructure standards, including visual aids for landing, battery charging requirements, and emergency preparedness procedures.
💡The new regulations will assist in site clearance and authorisation for vertiports post-construction, advancing the use of eVTOLs in advanced air mobility solutions.
China
INFLYNC, a Chinese eVTOL company, has completed an angel round funding, raising several million RMB with Light Silver Capital leading and Shanghai Angel Club also investing. The funds will support the research, development, and testing of their INFLYNC-L600 tilt-wing prototype.
💡The INFLYNC-L600 features 20 ducted fans, offers a 600-kilometer range, a top speed of 360 kilometers per hour, and seats six. It aims for low noise levels and will initially target passenger shared mobility and private charter services, with potential future uses in public services, emergency rescue, flight training, and cargo transport.
China
Vertaxi, having won the "Guangdong Province Aviation Emergency (Medium and Large UAV Rescue Platform)" project in June, plans to finalize the project by December. Announced via WeChat, the initiative involves setting up medium-sized composite-wing UAV rescue platforms across 15 Guangdong cities, including Guangzhou and Shenzhen, to create a UAV network capable of reaching disaster sites within 2 hours. The platforms will feature PDT cluster base stations, broadband networks, satellite communications, and advanced search and rescue technologies.
💡Vertaxi has also secured the "Guangdong Key Area R&D Program" project to explore large-load eVTOLs for future firefighting and emergency rescue, supporting the deployment of the M1 cargo version.
Japan
Japan's SkyDrive has partnered with Osaka Metro to explore the feasibility of using eVTOLs in Osaka after the 2025 Expo, focusing on business plans and vertiport operations to advance urban mobility. The tie-up follows SkyDrive's completion of a Series C funding round, raising a total of eight billion yen. The latest investment came from four organizations: Inventum Ventures, Osaka Metro, Energy & Environment Investment, and Mizuho Bank.
With the funding, SkyDrive aims to accelerate the development, certification, and mass production of its eVTOL aircraft by upgrading facilities, strengthening quality assurance, and expanding key departments. The company also plans to develop a digital platform to manage aircraft data throughout their lifecycle.
💡SkyDrive has received 263 pre-orders from Japan, the U.S., South Korea, and Vietnam.
Artificial Intelligence
Singapore
ST Engineering has unveiled its Einstein.AI deepfake detection tool at the InnoTech Conference on September 3, held at Marina Bay Sands. The tool is designed for use by banks, investment platforms, media companies, and other clients. It identifies inconsistencies in videos, such as unusual eyebrow or lip movements and suspicious audio frequencies, which are indicative of computer-generated content. The tool provides a report that includes a deepfake likelihood score, a transcript and summary of the audio, and related news content to help users evaluate the video's reliability.
💡Singapore is investing heavily in detection technologies, including a $50 million initiative for the Centre for Advanced Technologies in Online Safety and new models from the Agency for Science, Technology and Research and the Home Team Science and Technology Agency.
Australia
The Australian government has announced plans to introduce new guidelines for artificial intelligence, focusing on human intervention and transparency, reports Reuters. Industry and Science Minister Ed Husic revealed 10 voluntary guidelines on AI systems and launched a month-long consultation to consider making these guidelines mandatory in high-risk situations. The guidelines emphasize the importance of human oversight to manage unintended consequences and ensure transparency about AI's role in content generation. Husic highlighted growing public demand for stronger AI protections and noted that Australia's existing voluntary principles, established in 2019, are insufficient for high-risk scenarios.
💡The move comes as global concerns about AI's role in misinformation and fake news intensify.
Australia
A recent government trial for Australia’s corporate regulator, ASIC, found that artificial intelligence significantly lags behind humans in summarizing documents, reports Crikey. Conducted by Amazon, the test used Meta’s Llama2-70B model to summarize submissions from a parliamentary inquiry. Despite AI’s advanced capabilities, human summaries were rated much higher for coherence, context, and accuracy, scoring 81% compared to AI's 47%.
💡Reviewers noted that AI often missed key details, included irrelevant information, and required additional work for fact-checking. The report suggested that while AI has potential, it currently falls short of human critical analysis and should be used to augment rather than replace human efforts.
Marine
Singapore
Wärtsilä has been awarded the prototyping contract for Singapore's revolutionary Next Generation Vessel Traffic Management System (NGVTMS) by the Maritime and Port Authority of Singapore (MPA). Wärtsilä will collaborate at MPA's Maritime Innovation Lab 2.0 over the next 15 months, focusing on data analytics and machine learning to manage complex traffic scenarios and predict collisions. The NGVTMS will use AI-driven solutions and open system architecture to address increasing traffic volumes and improve port operations.
💡The project, booked in Q3 2024, aims to enhance maritime safety and efficiency at one of the world's busiest ports.
South Korea
Lloyd's Register (LR) and the Korea Research Institute of Ships & Ocean Engineering (KRISO) have launched a joint development program to enhance the verification and validation (V&V) of marine autonomous functions. The initiative aims to create a comprehensive testing environment for hardware, software, and AI elements of autonomous surface ships (MASS), with the goal of establishing practical V&V procedures that could set global standards.
💡KRISO's existing testbeds from the Korea Autonomous Surface Ship (KASS) project will support this effort, promoting higher security, reliability, and performance in maritime autonomous systems.
South Korea
Hanwha Ocean has become the first Korean shipbuilder to secure a contract for MRO services with the U.S. Navy. The contract involves working on the 40,000-ton USNS Wally Schirra, a dry cargo and ammunition ship, at Hanwha Ocean’s Geoje shipyard. The project, which also utilizes floating facilities for additional onshore maintenance, is part of a broader effort by the U.S. to strengthen naval partnerships amid rising global maritime threats. Hanwha Ocean, which recently earned Master Ship Repair Agreement (MSRA) certification, views this contract as a key step in expanding its presence in the U.S. naval shipbuilding market.
💡The company’s global defense activities are expected to benefit from this project, with the U.S. Navy's MRO market projected to exceed $60 billion annually.
South Korea
Mammoet has teamed up with South Korea’s Samyang Marine Group to advance the country's offshore wind sector. The partnership will establish Offshore Service Port (OSP) facilities at the Busan and Masan ports, providing comprehensive heavy lifting, transport, and terminal management services for offshore wind projects across South Korea and the Asia-Pacific region.
💡The collaboration aims to support South Korea's goal of deploying 14.3GW of offshore wind capacity by 2030.
Space
China
China's Shenlong spaceplane has successfully completed its third orbital mission, landing in the Gobi Desert after 268 days in space. Launched on December 14, 2023, aboard a Long March-2F rocket, the spacecraft returned to the Jiuquan Satellite Launch Centre on September 6. The mission focused on verifying reusable technology and conducting space science experiments, marking progress in China's reusable spacecraft technology.
💡The Shenlong, which last orbited for 276 days before returning in May 2023, is seen as China's counterpart to the U.S. X-37B. Although details about the Shenlong’s specifications remain undisclosed, it is believed to be similar in size and weight to the X-37B. Observers have noted that the Shenlong has conducted maneuvers, including raising its orbit from 300km to 600km.
China
On September 5, Senegal became a new partner in China's International Lunar Research Station (ILRS) initiative, with the China National Space Administration (CNSA) and Senegalese Space Agency signing a cooperation agreement. The Deep Space Exploration Laboratory (DSEL) also signed agreements with 10 international institutions, including the Belgrade Observatory (Serbia), Spacetalk (Switzerland), Orbital Space (UAE), the Space Science Innovation Center (Panama), Bandar Lampung University (Indonesia), the National University of Science and Technology (Pakistan), South African Radio Astronomy Observatory, African Space Development Foundation, and Africa Business Alliance.
💡The ILRS project aims to establish a lunar research facility in two phases: a basic facility by 2035 and a comprehensive network by 2050, involving over 40 global institutions.
**Nothing in this article is intended to be or should be construed as legal or financial advice.*