Passive mode locking of the Yb:Sc2O3 laser is demonstrated. We investigate the laser performance with Ti:sapphire and diode-laser pumping. The laser is mode locked by use of a semiconductor saturable-absorber mirror and emits as much as 0.8 W of power in the picosecond range with a pump efficiency as high as 47%. With dispersion compensation, pulses as short as 230 fs for an average power of 0.54 W are obtained at 1044 nm. This is, to our knowledge, the first femtosecond oscillator based on an Yb-doped sesquioxide crystal.