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Sustainable aviation fuel (SAF) is often described as the airline industry’s most immediate tool for cutting emissions, but its adoption remains stubbornly low.
According to industry estimates, SAF accounted for just 0.3% of global jet fuel use in 2024.To align wiht net-zero targets, production must grow more than 100-fold by 2050. That scale-up will require billions in investment, coordinated policy support, and a steady pipeline of viable projects; something that, until recently, has proved elusive.
Progress on sustainable aviation fuel from all corners of the world
From South America to South Asia, new facilities and investments are proving that SAF production can happen far beyond its traditional bases in europe and North America.
In a national first, Indian Oil‘s Panipat refinery has been certified to produce SAF from used cooking oil, making it the first facility in the country to do so. Dubbed “from samosa oil to jet fuel” by local media, the project aims to tap into abundant waste feedstocks, turning everyday kitchen waste into a low-carbon alternative to kerosene.
!Indian Oil
Photo: Indian Oil
In Argentina, the state-owned oil company YPF has committed $400 million to launch Santa Fe Bio, a joint venture producing SAF from agricultural residues and waste oils. Based at the San Lorenzo refinery, the venture is designed to serve both domestic demand and export markets, positioning Argentina as a regional SAF hub.
!YPF Santa Fe Bio SAF facility
Photo: YPF
On the other side of the world, Pertamina in Indonesia has delivered its first SAF shipment to Soekarno-Hatta Airport, produced at its Cilacap refinery using a blend of waste cooking oil and conventional jet fuel. With a production ca
Sustainable Aviation Fuel Faces Scaling Challenges Despite Progress
August 12, 2024 – The ambitious push to replace traditional jet fuel with sustainable Aviation Fuel (SAF) is encountering important hurdles despite growing investment and technological advancements. While new projects are emerging globally, the industry faces challenges related to feedstock availability, production costs, and policy uncertainty, potentially hindering its ability to meet critical climate targets.
Recent difficulties experienced by World Energy,a leading U.S. SAF producer, highlight the fragility of the sector. The company paused plans for a major expansion of its Paramount, California refinery, citing financial constraints and delays in securing sufficient feedstock. https://www.reuters.com/business/energy/us-saf-producer-world-energy-pauses-expansion-amid-financial-woes-2024-08-09/
“People sometimes said too much in the past and did too little,” remarked a source familiar with the industry,speaking to Reuters. This suggests a history of overpromising and underdelivering on SAF commitments.
the challenges facing World Energy are not isolated. Reuters reports that dozens of clean energy startups worldwide are grappling with similar issues. A key obstacle is securing a consistent and affordable supply of feedstock – the raw materials used to create SAF.These feedstocks include waste oils, fats, and agricultural residues, and also emerging sources like algae and captured carbon dioxide. https://www.iea.org/reports/aviation-fuels
High production costs also remain a significant barrier. SAF is currently considerably more expensive to produce than conventional jet fuel, making it challenging to compete without government support. The International Energy Agency (IEA) notes that scaling up SAF production requires substantial investment in new technologies and infrastructure.Industry groups emphasize that stable regulation and guaranteed offtake agreements are crucial to attracting private capital. Without these assurances,investors view SAF as a high-risk venture. Offtake agreements, where airlines commit to purchasing a specific volume of SAF, provide producers with the financial certainty needed to secure funding and expand production. https://www.iata.org/en/policy/environment/sustainable-aviation-fuels/
Despite these challenges, progress is being made. Neste, a Finnish company, is supplying SAF to Gatwick Airport, demonstrating the growing availability of the fuel.(See image).New projects are also underway globally, showcasing technological and geographical diversification in SAF production.
However, the gap between current SAF production levels and the volumes needed to meet climate goals remains substantial. To achieve meaningful reductions in aviation emissions, a significant acceleration in SAF scaling, coupled with robust policy frameworks and viable business models, is essential. Without these elements, SAF risks remaining a promising technology that fails to reach its full potential.
