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
Environmental Regional Seminars
ICAO is hosting five Environmental Regional Seminars from August to September 2024 to discuss the implementation of the LTAG and Global Framework. The seminars will cover aviation cleaner energy policies, State Action Plans, CORSIA, implementation challenges, the ACT-SAF programme, financing, and monitoring progress. The events will take place in:
Bangkok, Thailand (August 7-8)
Cairo, Egypt (August 12-13)
Asunción, Paraguay (August 20-21)
Dakar, Senegal (August 27-28)
Samarkand, Republic of Uzbekistan (September 10-12)
2024 ICAO Symposium on Non-CO2 Aviation Emissions
The 2024 ICAO Symposium on Non-CO2 Aviation Emissions, taking place from September 16-18, 2024, at ICAO Headquarters in Montréal, Canada, will focus on raising awareness and fostering collaboration on non-CO2 emissions from aviation. The three-day event will review current scientific knowledge, showcase stakeholder efforts, and explore future measures to address and mitigate these emissions amid existing uncertainties.
2024 ICAO LTAG Stocktaking on Aviation CO2 Emissions Reductions
The 2024 ICAO LTAG Stocktaking on Aviation CO2 Emissions Reductions, scheduled for October 7-10, 2024, at ICAO Headquarters in Montréal, Canada, will review progress toward achieving net-zero carbon emissions for international aviation by 2050. This in-person event continues the series of ICAO Stocktaking meetings started in 2019 and responds to requests from the 41st ICAO Assembly and the Third Conference on Aviation and Alternative Fuels (CAAF/3) to monitor advancements in sustainable aviation fuels and other cleaner energy initiatives.
Summary
Financing & Investments: Orix to Invest Over $1 Billion in Aircraft Fleet Expansion; MANTRA and Novus Aviation Capital Partner to Advance Tokenization in Aviation Financing; SpiceJet MD to Sell 10% Stake to Raise $357 Million; Thailand SEC Launches Digital Asset Regulatory Sandbox for Innovation; and Straits Energy Resources Plans NYSE American Listing for Oil Bunkering Segment
Environmental Sustainability: Honeywell Partners with Jiutai Group to Produce 100,000 Tons of SAF Annually; Otsuka Pharmaceuticals Joins Tokyo’s SAF Program to Cut Carbon Emissions; Bengaluru Airport Achieves ACI Level 5 Sustainability Accreditation; and MAS Launches TRACTION Coalition at COP28 to Accelerate Clean Energy Transition
Aviation: Brisbane Airport to Build $217 Million Aeromedical Precinct for Enhanced Emergency Response; CAAS and CAFUC Sign MOU to Enhance Aviation Training and Safety in Asia-Pacific; COMAC ARJ21 Completes China’s First 5G AeroMACS Technology Test; Hong Kong Airlines Plans Cash Injection to Address Financial Crisis and Resume Operations; and IATA Releases Mid-Year 2024 Accident Report with Enhanced Data Analysis Features
Advanced Air Mobility: Skyports and Wagner Corporation Partner to Develop Vertiports in Queensland; EHang's EH216-S Completes Nan'an's First Pilotless eVTOL Flight; Aerofugia’s Design Assurance System Approved by CAAC for AE200 eVTOL; Blueflite to Advance Hydrogen Storage for UAVs with NT Government Support; and China’s Large Twin-Engine Uncrewed Transport Aircraft Completes Maiden Flight
Artificial Intelligence: Beijing Scientists Unveil World's First Fully Optical AI Chip, Taichi-II; IBM to Establish Full-Stack AI Research Center at National University of Singapore; M1 and Ericsson Partner to Enhance 5G Network with AI-Powered Automation
Cybersecurity: Singapore MAS Partners with Banks and Tech Firms to Explore Quantum Security Solutions; and OneDegree Global Collaborates with HKMA on Gen AI Sandbox and Launches Cyber Insurance Platform
Marine: TotalEnergies Delivers First 100% Biofuel Cargo in Singapore; LS Marine Solution and Dong Fang Offshore Partner for South Korean Offshore Wind Projects; N50 Project Partners with YKAN and Intelion to Enhance Fisheries Management with AI; HD Hyundai Marine Solution Secures $30 Million LNG-FSU Conversion Project; and Thailand Races to Prevent Hazardous Waste from Albania from Reaching Ports
Financing & Investments
Japan
According to Nikkei Asia, financial service group Orix will invest over 150 billion yen ($1 billion) to expand its aircraft leasing fleet. The company plans to acquire more than 50 planes, mainly small and mid-sized used aircraft, over the next three years to double its fleet to over 100.
The investment will exceed 150 billion yen in fiscal 2024 alone, with further spending in fiscal 2025 and 2026. Orix aims to grow its total fleet, including managed aircraft, to between 300 and 400 by fiscal 2027.
💡The expansion is driven by a recovery in global travel and increased demand for leased planes, which has led to a 50% rise in leasing fees since 2020.
Global
MANTRA, a RWA Layer-1 Blockchain, has signed an Memorandum of Understanding (MOU) with Novus Aviation Capital to advance the tokenization of assets in the $200 billion aviation financing market. Novus Aviation Capital, a leading firm in aviation leasing and financing since 1994, aims to innovate and enhance investment opportunities through tokenization.
💡The partnership aims to improve efficiency and drive financial innovation in aviation financing.
India
SpiceJet's managing director plans to sell 10% of his stake in the airline to raise INR30 billion (USD357 million) to address financial issues. The sale will reduce his stake from 47.8% to 30-35%, but he will remain the largest shareholder and increase his stake later via warrant conversion.
The airline has faced financial struggles, with a 26.7% drop in Q1 2024 net profit and a reduced domestic market share of 4%. Efforts to raise INR22 billion (USD262 million) were only partially successful, prompting a new plan to raise INR30 billion (USD357.2 million).
💡The Delhi High Court has ordered SpiceJet to return three leased engines by August 17 due to unresolved lease arrears.
Thailand
Thailand’s Securities and Exchange Commission (SEC) has launched the Digital Asset Regulatory Sandbox to facilitate the development and testing of digital asset services in a controlled, real-world environment. The initiative, approved by the SEC Board in March and refined through stakeholder feedback in May, aims to balance innovation with regulatory compliance.
The sandbox accommodates six types of digital asset-related services, including exchanges, brokers, dealers, fund managers, advisors, and custodial wallet providers. To participate, entities must demonstrate capital adequacy, management structure, and operational readiness. The testing period is set for one year, with the possibility of extension.
💡Applications are now open. For more details, visit the SEC’s website or contact daregsandbox@sec.or.th.
Malaysia
Straits Energy Resources Berhad (SER) announced on 12 August its plan to list its oil bunkering segment through an initial public offering (IPO) on NYSE American. The move involves the listing of ordinary shares in its 76.68%-owned subsidiary, TMD Energy Ltd (TMDEL), replacing the previously planned NASDAQ listing.
The proposed IPO is expected to raise between USD5.69 million and USD15.00 million (MYR26.57 million to MYR70.09 million), with an indicative issue price of USD3.25 to USD3.75 per share (MYR15.19 to MYR17.52 per share). TMDEL plans to issue its final prospectus by the fourth quarter of 2024.
💡The listing aims to enhance resource allocation, accelerate growth in oil bunkering and shipping services, and unlock shareholder value through the IPO process.
Environmental Sustainability
China
Honeywell has announced its first global commercial eFining license agreement with Inner Mongolia Jiutai Group to produce 100,000 tons of sustainable aviation fuel (SAF) per year from eMethanol. Honeywell’s eFining technology converts eMethanol into low-carbon eSAF, reducing greenhouse gas emissions by 88% compared to conventional jet fuel.
💡The SAF production will utilize surplus capacity from Jiutai’s methanol-to-olefins facility and leverage wind resources in northwest China.
Japan
Otsuka Pharmaceuticals will join the Tokyo Metropolitan Government’s SAF Promotion Project, using SAF for shipping U.S. pharmaceuticals through Yusen Logistics. The initiative aims to reduce Scope 3 CO2 emissions, complementing Otsuka's efforts to address Scope 1 and 2 emissions.
The project, running from August 5, 2024, to March 31, 2025, will use SAF to potentially cut CO2 emissions by up to 80% compared to conventional jet fuel, with an expected reduction of 50 tons of CO2.
💡Otsuka's participation marks its first use of SAF for international product transport and supports broader environmental impact reduction goals.
India
Kempegowda International Airport in Bengaluru has become the first airport in Asia to receive Level 5 accreditation from Airports Council International (ACI). The milestone, achieved seven years ahead of its 2030 target, reflects a 95.6% reduction in Scope 1 and 2 greenhouse gas emissions.
💡The airport has transitioned to 100% renewable electricity and is committed to further sustainability goals, including achieving Net Zero GHG emissions by 2050.
Singapore
The Monetary Authority of Singapore (MAS) has introduced the Transition Credits Coalition (TRACTION) at COP28. With around 30 partners, TRACTION aims to use transition credits to facilitate the early retirement of coal plants and the shift to clean energy sources. The coalition, which includes members from carbon credit services, energy financing, project development, risk management, and NGOs, will address barriers to using transition credits as a credible financing tool.
Over the next two years, TRACTION will work on developing robust crediting approaches, mitigating risks, and enhancing buyer confidence in transition credits.
💡Those with enquiries or have potential pilot projects to discuss are invited to write to transition_credits@mas.gov.sg .
Aviation
Australia
Brisbane Airport is launching a $217 million aeromedical precinct to enhance emergency response across Queensland. The state-of-the-art facility, located between the airport's parallel runways, will support aircraft and resources for the Royal Flying Doctor Service, LifeFlight, Retrieval Services Queensland, and Queensland Police Service Aviation Capability Group. The precinct will feature hangars, tarmac parking for 26 aircraft, and space for 450 staff. It aims to improve coordination and care for urgent patient transfers, consolidating multiple emergency agencies into one central location for faster response times.
💡The new facility will also include a patient transfer hub and support statewide telehealth and education.
Singapore
On August 13, the Civil Aviation Authority of Singapore (CAAS) and the Civil Aviation Flight University of China (CAFUC) signed a MOU at the 2nd Asia-Pacific Summit for Aviation Safety in Beijing. The agreement aims to enhance civil aviation training and capacity building for regulatory personnel in both countries.
💡Under the MOU, CAAS and CAFUC will collaborate on creating specialized training programs, conducting research on regulatory practices, and offering technical assistance across the Asia-Pacific region.This is the first MOU between the two organizations.
China
A COMAC ARJ21 aircraft has successfully completed China's first 5G AeroMACS technology verification test at Zhengzhou Airport, according to the Civil Aviation Administration of China (CAAC). The test, involving multi-area taxiing, aimed to assess the reliability and coordination of 5G-based avionics systems, which are expected to enhance safety and efficiency for aircraft and ground vehicles. The Henan Air Traffic Control Sub-bureau, ZTE Corporation, and Zhengzhou Xinzheng International Airport contributed to the test.
💡The successful trial marks progress in addressing airport communication issues and advancing broadband technology in civil aviation.
Hong Kong
Hong Kong Airlines has announced an "initial cash injection plan" to address overdue salary payments and stabilize its operations amid financial difficulties. The Air Transport Licensing Authority (ATLA) has imposed conditions on the airline’s license, requiring it to raise funds and maintain certain cash levels, with a deadline set for December 7 to avoid suspension or revocation of its license.
The airline plans to pay outstanding staff salaries on December 5 and gradually resume normal services as funds are received.
💡Financial challenges for Hong Kong Airlines, exacerbated by ongoing protests in Hong Kong, have led to significant losses and capacity cuts, including suspensions of flights to Vancouver, Ho Chi Minh City, and Tianjin. The airline's financial troubles follow a reported HK$3 billion loss in 2018 and recent insurance coverage changes by Bank of China Group Insurance.
Global
IATA has released its mid-year accident report for the first half of 2024, updating the Annual Safety Report website. There were 20 accidents reported, with an accident rate of 1.01 per million sectors and one fatality due to turbulence.
💡The report allows users to analyze extensive data sets, identify trends and safety issues, and develop targeted improvement strategies.
Advanced Air Mobility
Australia
Skyports Infrastructure and Wagner Corporation have partnered to explore vertiport development in Queensland, Australia, focusing on strategic locations around Brisbane. Wagner will provide real estate assets, and Skyports will assess their feasibility for vertiports.
💡The partnership includes evaluating Toowoomba Wellcamp Airport for a potential vertiport testbed. They will also collaborate with EVTOL companies like Wisk and engage with stakeholders to support Australia’s Advanced Air Mobility ecosystem.
China
EHang's EH216-S has completed Nan'an's first passenger-carrying pilotless eVTOL flight. The milestone coincides with EHang delivering five units for low-altitude tourism, urban transportation, and emergency response.
💡Construction has also begun on the Nan'an City Urban Air Mobility Operation Center at Xinhai Wetland Park, with plans for the EH216-S to operate at scenic locations such as Zheng Chenggong Memorial and Xinhai Wetland Park.
China
Aerofugia's Design Assurance System (DAS) has received approval from the CAAC Southwest Regional Administration, marking China’s first approval of a DAS for a crewed eVTOL. The system, built to CCAR-21 regulations, will expedite the airworthiness certification of the AE200 eVTOL. Aerofugia voluntarily implemented the DAS to enhance certification efficiency.
💡The company will now work towards obtaining the Type Certificate (TC) for the AE200 and advance its development and testing for commercial deployment.
Australia
Blueflite is launching an innovative project in collaboration with the Northern Territory (NT) Government to address the global need for safe hydrogen storage solutions for uncrewed aerial vehicles (UAVs). The project, based in Darwin, aims to develop lightweight hydrogen containers using Advanced Fiber Placement (AFP) technology, a cutting-edge approach to composite vessel manufacturing.
💡The project will utilize Charles Darwin University's (CDU) unique AFP robot, which is the only one of its kind in Australia, to enhance the production of these containers.
China
China’s largest domestically produced uncrewed transport aircraft, developed by Sichuan Tengdun Technology Co., Ltd., has successfully completed its maiden flight test at Fengming General Aviation Airport in Zigong, Sichuan. The flight lasted about 20 minutes, with all systems functioning normally.
💡The UAV features a 16.1-meter wingspan, a height of 4.6 meters, a 12-cubic-meter cargo space, and a 2-ton payload capacity. It is equipped with 2100RTY hydraulic variable-pitch propellers from Anhui Xihe Aviation Technology Co., Ltd., a major supplier in the Yangtze River Delta region.
Artificial Intelligence
China
A team of scientists from Beijing has unveiled the Taichi-II chip, the world’s first fully optical AI chip. The chip surpasses the NVIDIA H100 GPU in energy efficiency and represents a significant advancement from its predecessor, the Taichi chip.
The Taichi-II chip enhances AI training and modeling by using optical processes, which improve performance and efficiency. It achieves faster training of optical networks, better classification accuracy, and superior energy efficiency in low-light conditions.
💡The chip employs a novel fully forward mode (FFM) learning technique, enabling high-precision, parallel processing of machine learning tasks and promising a new era of optical computing for AI.
Singapore
IBM has announced plans to create a "full-stack" tech infrastructure at the National University of Singapore (NUS), focusing on AI research and development. The new facility will feature IBM's AI accelerators, Granite large language models, Watsonx data and AI platforms, and Red Hat's hybrid cloud solutions.
Dubbed the "first full-stack AI infrastructure" on a university campus in Asia-Pacific, the center aims to support local academic institutions and businesses in AI development. IBM and NUS will collaborate on projects to build trust in AI, focusing on green AI, safe AI, and domain-specific advancements.
Research at the center will explore scalable AI systems with lower energy and data requirements, smaller AI models for edge devices, and improved alignment of software and hardware for optimal performance. The center will also investigate AI safety measures, such as "machine unlearning" to remove sensitive data without retraining models.
💡In a related initiative, IBM is partnering with AI Singapore to test and refine the Southeast Asian Languages in One Network (SEA-LION) model, further enhancing AI capabilities in the region.
Singapore
Singaporean Mobile Network Operator M1 has signed a MoU with Ericsson to enhance the capacity and performance of M1’s IP and microwave networks. The collaboration marks the world's first live network deployment combining IP and microwave networks with advanced AI and Machine Learning capabilities.
As part of the MoU, M1 will use the Ericsson Transport Automation Controller for a proof of concept on its network by the last quarter of 2024. The initiative aims to improve the capabilities of M1's 5G Standalone (SA) network by providing higher bandwidth, lower latency, and more resilient transport connectivity.
💡Ericsson's Transport Automation Controller is a cloud-native, AI-powered system that analyzes and automates microwave, IP, and optical networks. The technology will enable M1 to gain real-time insights, allowing for faster connectivity, reduced lag time, and proactive network management. The collaboration supports M1's broader goals of modernizing its mobile transport network and advancing its automation and AI capabilities.
Cybersecurity
Singapore
The Monetary Authority of Singapore (MAS) has partnered with DBS, HSBC, OCBC, UOB, SPTel, and SpeQtral to explore quantum security for the financial sector. Formed through a Memorandum of Understanding (MoU) signed on 14 August 2024, this collaboration will focus on Quantum Key Distribution (QKD) to safeguard cryptographic key exchanges against quantum computing threats.
As quantum computing evolves, it poses significant cybersecurity risks, prompting MAS to advise financial institutions to investigate quantum security solutions. This initiative builds on MAS’s earlier advisory and the quantum track under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0).
💡The MoU sets the framework for testing QKD solutions from SPTel and SpeQtral, with an emphasis on evaluating QKD’s effectiveness, verifying security features, and enhancing technical expertise through collaborative learning.
Hong Kong
OneDegree Global is providing AI Red Team solutions to the Hong Kong Monetary Authority’s (HKMA) Generative AI (Gen AI) Sandbox, aimed at refining AI-related guidelines. Their Cymetrics brand will use its automated testing platform, Cymetrics Vulcan, to assess AI risks and bolster security.
💡Additionally, OneDegree Global has partnered with Lexasure Financial Group to launch a digital cyber insurance platform for South and Southeast Asia. The platform, revealed at the ITC Asia conference, offers rapid policy issuance and real-time risk assessment for SMEs, addressing rising cybersecurity threats in the region.
Marine
Singapore
TotalEnergies has supplied its first 100% biofuel (B100) cargo in Singapore. The biofuel, made from used cooking oil sourced in Southeast Asia, can reduce greenhouse gas emissions by 80-90% on a life-cycle basis. The 700-metric ton cargo was delivered on August 5 to a Hyundai Glovis car carrier, using a tanker owned by Global Energy Group.
💡As demand for marine biofuels grows, TotalEnergies projects that Singapore's biofuel demand could nearly double to 1 million metric tons by 2025.
Korea
Korea's LS Marine Solution has signed an MOU with Taiwan's Dong Fang Offshore (DFO) to charter a service operations vessel (SOV) and bid on offshore wind projects in South Korea. This marks the first introduction of an SOV in the Korean market, with LS Marine aiming to capitalize on DFO's operational expertise.
💡The vessel, nicknamed the "Five-Star Hotel on the Sea," will offer premium services and support offshore wind projects with long-term maintenance contracts of 15-20 years. LS Marine also plans to expand into the U.S. and European markets, collaborating with LS Cable & System and LS Eco Energy.
Indonesia
The N50 Project, in collaboration with Yayasan Konservasi Alam Nusantara (YKAN) and Intelion, is advancing fisheries management in Indonesia through the use of cutting-edge AI technology. The initiative, supported by the Cisco Foundation, focuses on preserving Indonesia's marine biodiversity, which includes over 873 species of bony fish and 137 species of sharks, rays, and chimeras.
💡YKAN, operating across 14 Indonesian provinces, utilizes the FishFace application—an AI-driven fish facial identification technology—to monitor fish stocks and design effective management solutions. The system, achieving 99% accuracy in initial trials, provides real-time data and insights for better regulation and conservation.
South Korea
South Korea's HD Hyundai Marine Solution Co. has secured its first contract to convert a floating storage unit for liquefied natural gas (LNG-FSU), valued at $30 million. The project, awarded by a European shipping company, marks the company’s inaugural contract since its 2016 spin-off from HD Hyundai Heavy Industries.
The conversion involves transforming a 138,000-cubic-meter LNG carrier, built in Spain in 2004, into an offshore LNG terminal. This terminal will be stationed at sea, receiving and storing LNG for delivery to onshore power plants and storage facilities.
💡HD Hyundai Marine Solution will handle all aspects of the project, including design, procurement, construction, transportation, installation, and commissioning. The conversion is scheduled for completion in the first half of next year, with the LNG-FSU planned to operate in the Central American region, supplying LNG to thermal power plants.
Thailand
Thai authorities are urgently working to prevent around 100 shipping containers, suspected of containing hazardous industrial waste from Albania, from reaching the country's ports. The Basel Action Network alerted Thailand that these containers, believed to hold toxic electric arc furnace dust, are en route.
One of the ships carrying the containers has disappeared from tracking systems after nearing Cape Town, prompting concerns. Thai officials, collaborating with Albania and Singapore, are trying to stop the containers from arriving at Laem Chabang port on August 20.
💡The containers, loaded onto Maersk and MSC vessels, were not declared as hazardous, and Maersk plans to hand them over to the responsible shipping line.
**Nothing in this article is intended to be or should be construed as legal or financial advice.*