The International Air Transport Association ( IATA
) released new estimates for Sustainable Aviation Fuel (SAF) production. This year, SAF production volumes reached one million tonnes, doubling the production from 2023. SAF accounted for 0.3% of global jet fuel production and 11% of global renewable fuel.

1

Government’s strategic policies and incentives

The Director of IATA, General Willie Walsh, suggests that governments can accelerate SAF production by decreasing fossil fuel production subsidies and replacing them with strategic production incentives and clear policies supporting a future built on renewable energies, including SAF.

General Walsh said, “SAF volumes are increasing, but disappointingly slowly. Governments are sending mixed signals to oil companies which continue to receive subsidies for their exploration and production of fossil oil and gas. And investors in new-generation fuel producers seem to be waiting for guarantees of easy money before going full throttle. With airlines, the core of the value chain, earning just a 3.6% net margin, profitability expectations for SAF investors need to be slow and steady, not fast and furious. But make no mistake that airlines are eager to buy SAF and there is money to be made by investors and companies who see the long-term future of decarbonization.”

This report is significantly lower than previous estimates, projecting 2024’s SAF production at 1.5 million tonnes. Key SAF production facilities in the US have pushed back their increased production to 2025. Next year, SAF production is expected to reach 2.1 million tonnes, or 0.7% of total jet fuel production and 13% of global renewable fuel capacity.

shutterstock_2463328421
Photo: Bulent camci | Shutterstock

This recent report focuses only on projects that currently use or plan to use SAF, so the total number of projects considered is smaller. It’s important to note that this does not mean there is a trend toward more SAF in renewable fuel projects; rather, the percentage of SAF is increasing simply because there are fewer renewable fuel projects overall.

Related

What Are The Main Benefits & Challenges Of Sustainable Aviation Fuels?

SAF is a major focus of the industry today.

2

Perception of SAF as solely a transportation issue

Decarbonization of the airline industry is often perceived as solely a transportation-related issue, yet it must be recognized as a critical component of the larger global energy transition. This narrow perspective overlooks the opportunities that decarbonization efforts present for the overall economy.

“Governments must quickly deliver concrete policy incentives to rapidly accelerate renewable energy production. There is already a model to follow with the transition to wind and solar power. The good news is that the energy transition, which includes SAF, will need less than half the annual investments that realizing wind and solar production at scale required. And a good portion of the needed funding could be realized by redirecting a portion of the retrograde subsidies that governments give to the fossil fuel industry,” said Walsh.

IATA analysis shows that over 6,500 new renewable fuel plants are necessary to reach net-zero CO2 emissions by 2050. Additionally, these plants will produce renewable diesel and other fuels for other industries. In a best-case scenario, the annual average capital expenditure needed to build the new facilities over the 30-year period is about $128 billion per year. Compared to the annual $280 billion between 2004 and 2022, this amount is significantly less than the estimated total sum of investments in the solar and wind energy markets.

By investing in renewable fuel refineries, the airline industry can significantly contribute to the development of SAF, which is vital for reducing air travel’s carbon footprint. However, the impact of these refineries extends beyond aviation. They will produce renewable fuels that can be utilized by other industries, including transportation, manufacturing, and even power generation.

Related

Will Sustainable Aviation Fuel Ever Take Off?

Many airlines are committing to lowering the environmental impact of their operations, often by the use of SAF. However, supplies of SAF are not high at the moment, and airlines are struggling to fulfill their promises and delaying these commitments due to a lack of SAF. Do you think that the production rate of SAF will increase enough for airlines to fully use it by 2050?

The advancement of renewable fuel technologies has the potential to create a ripple effect throughout the economic landscape. This transition helps combat climate change, encourages job creation, stimulates technological innovation, and promotes energy diversification.

3

Measures to be taken to accelerate SAF use and production

With more investment in SAF, its production could be accelerated. Short-term measures to expand SAF production include increasing co-processing, diversifying SAF production, and creating a framework for global SAF accounting.

Related

Explained: The Importance Of Carbon Removals In British Airways’ Sustainability Strategy

The UK and British Airways aim to be world leaders in carbon reduction and plan to be net-zero in around 25 years.

Existing refineries can co-process up to 5% of approved renewable feedstocks alongside traditional crude oil streams and require minimal material investment. According to the IATA, by 2050, co-processing could save $347 billion in capital expenditures as more than 260 new renewable fuel plants would not need to be built.

With 11 certified pathways to make SAF, the hydrotreated esters fatty acids (HEFA) method accounts for around 80% of production. The HEFA method creates SAF using used cooking oil or animal fats. SAF volumes could be boosted by increasing investments to scale up production through the other certified pathways, specifically the Alcohol-to-Jet and Fischer-Tropsch, which use biological and agricultural wastes and residue.

shutterstock_2270822133

Photo: Scharfsinn | Shutterstock

A registry allowing airlines to benefit from the environmental attributes of their SAF purchases and to be able to claim these against their obligations in a transparent manner that prevents double counting is essential. This type of registry will help achieve a global SAF market where airlines can buy SAF, and all SAF producers can sell their fuel to airlines.

Related

Paying Extra For Carbon Offsetting: How Many Passengers Would Do It & How Much Would They Pay?

Carbon offsetting is a give-back practice that more and more flyers are taking a part in. But what is the right amount to payback? Let’s find out.

What is Sustainable Aviation Fuel (SAF)?

SAF is an alternative fuel most commonly made from non-petroleum feedstocks, reducing emissions from air transportation. SAF can be blended at different levels, with limits between 10% and 50%, depending on the feedstock and how the fuel is produced. According to the International Civil Aviation Organization ( ICAO
), over 360,000 commercial flights have used SAF at 46 different airports, largely concentrated in the United States and Europe.

According to the US Department of Energy, worldwide aviation accounts for 2% of all carbon dioxide (CO2) emissions and 12% of all CO2 emissions from transportation. Through 2035, the ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation caps net CO2 aviation emissions at 2020 levels. By 2050, the international aviation industry has set an aspirational goal to reach net-zero carbon. SAF presents the best near-term opportunity to meet these goals.

Related

How Viable Is Sustainable Aviation Fuel (SAF) In Reducing The Aviation Industry’s Carbon Footprint?

SAF is currently being triumphed as a way that the aviation industry can reduce its emissions. It could also play a part in the industry’s road to net zero by 2050, though it cannot be used as the only solution. This means that SAF remains only partially viable as a way to reduce the industry’s CO2 emissions. But how viable do you think it is? Let us know what you think and why in the comments below!

Renewable hydrocarbon biofuels offer many benefits, including:

  • Engine and infrastructure compatibility—SAF blended with conventional Jet A can be used in existing aircraft and infrastructure.
  • Fewer emissions—Compared with conventional jet fuel, 100% SAF has the potential to reduce greenhouse gas emissions by up to 94%.
  • More flexibility—SAF is a replacement for conventional jet fuel.

SAF Production

SAF can be produced from non-petroleum-based renewable feedstocks including, but not limited to, the food and yard waste portion of municipal solid waste, woody biomass, fats, greases, oils, and other feedstocks. SAF production is in its early stages, with three known commercial producers:

  • World Energy began SAF production in 2016 at its Paramount, California, facility and initially supplied fuel to Los Angeles International Airport prior to supplying additional California airports.
  • International producer Neste began supplying SAF to San Francisco International Airport in 2020 before expanding to other California airports in 2021 and 2022, as well as Aspen/Pitkin County Airport and Telluride Regional Airport, both in Colorado.
  • Montana Renewables LLC began production in partnership with Shell at an existing petroleum production plant in 2023, supplying fuel to several partner airlines.

Additional new domestic plants are expected. Many airlines have signed agreements with existing and future SAF producers to use all their expected output. The US Environmental Protection Agency data show that approximately five million gallons of SAF were consumed in 2021, 15.84 million gallons in 2022, and 24.5 million gallons in 2023.

sustainable-aviation-fue

Photo: US Department of Energy

A recent IATA survey revealed significant public support for SAF. 86% of travelers agreed governments should provide production incentives for airlines to access SAF and agreed it should be a priority for oil companies to supply SAF to airlines.

Related

What Role Can Sustainable Aviation Fuels Play In Reducing Airlines’ Carbon Footprints?

The aviation industry as a whole has set an ambitious goal of being net zero by 2050. New fuels such as hydrogen will have some role to play in this goal, but they will not be suitable for longer-haul flights. Here is where I believe that sustainable aviation fuels will help play a part in reducing airlines’ carbon footprints. But what do you think? Let us know in the comments! (Photo: Scharfsinn | Shutterstock)

Leave a Reply

Your email address will not be published. Required fields are marked *