Sustainable Aviation Fuel: Expanding Production, and Rising Adoption of Airlines

Global Push Worldwide Aviation is Expanding

Aviation’s carbon footprint is increasing due to pressure from governments and international organizations. Aviation is responsible for 2-3% of the world's CO2 emissions, and that share will grow with increased frequency of flights. Countries and airlines have incorporated SAF (Sustainable Aviation Fuel) into their strategies to reach net zero 2050. ICAO (International Civil Aviation) CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) has taken the initiative to encourage airlines to use cleaner aviation fuels. Other governments have implemented SAF blending mandates, tax relief, and funding to support early adopters.

SAF, unlike traditional jet fuel, has the potential to mitigate lifecycle emissions by 80% depending on the production pathway, and feedstock. The fact that SAF is compatible with existing aircraft engines and infrastructure is what makes SAF one of the foremost and most scalable options to decarbonizing aviation. SAF and its technologies are forming the basis of long-term global strategies to decarbonize aviation and is having SAF produced on a greater scale with the SAF technologies and feedstocks. The global decarbonization push is one of the primary contributors to the overwhelming increase in SAF production, innovation, and funding. SAF is also emerging as a pillar to global decarbonization strategies.

Increasing SAF Production and the Continued Growth

Production of SAF is expanding as commercial facilities and new feedstocks, and technologies are developing across the globe. Initial SAF production was being made with waste oils and fats using HEFA (Hydroprocessed Esters and Fatty Acids) but production technologies are also beginning to diversify. There are new generation SAF production technologies that are being adopted quickly such as Alcohol-to-Jet (ATJ), Fischer-Tropsch (FT) that produce synthetic fuels from Biomass and the emerging power-to-liquid (PtL) E-Fuels. These production pathways can also produce SAF from used textiles and captured CO2 with green starved hydrogen.

As per GMI Research, the Sustainable Aviation Fuel Market is forecast to reach USD 9,879 million in 2030

A large number of SAF refineries with new fuel SAF productions are being constructed and in planned stages over the coming years. Government regulators in the US, the EU, Japan, and the Middle East are giving subsidies are the SAF producers. With years of production and more jet fuel SAF being produced, the production price of SAF jet fuel will decrease. Innovation and development in technologies with the domains of effecient fuel production, and carbon emission reducing SAF forecasters will fuel the fuel SAF development, and production. With more jet fuel SAF being produced, more developed, the SAF industry and production will continue in expanding. With the jet fuel being produced SAF industry expanding, the aviation industry will continue to be decarbonized.

With the growing number of aviation industries adopting decarbonization strategies, more and more long term offtake contracts are being purchased. With the major airline industries: Emirates, Qatar, Lufthansa, United, British, and Qantas, major SAF producers streaming the decarbonization airline strategies, encourage offtake contracts with the SAF producers to obtain more SAF jet fuel. With the long term financial contracts SAF producers are able to predict long term profitability in jet fuel SAF to decarbonize the airlines. More developed , and with the long term contracts, SAF producers are able to predict more profitability. For Global airline decarbonization, more SAF productions are being developed with long term financial SAF agreements. For Global companies purchasing SAF credits to offset business travel emissions encourage corporate customers to offset business travel emissions.

Several airlines have conducted commercial flights with SAF blends and confirmed their efficiency, reliability, and safety. To promote SAF use, airlines are establishing loyalty schemes and offering ‘green’ tickets. SAF blends are being offered to airlines, and these are supported by governments through national SAF policies and procurement. Adjusting to high production costs and limited availability of SAFs requires the aviation sector to embrace long-term contracts.

The SAF adoption rate is predicted to rise as airlines begin to pursue their net-zero targets and as Environmental, Social and Governance (ESG) expectations further intensify. These are long-term contracts and they demonstrate confidence in SAF being the most predictable option to decarbonize the sector and enhance global connectivity.