Why Was 2024 a Disappointingly Slow Year for SAF Production?
A report published by the International Air Transport Association (IATA) suggests that the aviation sector is falling short of its targets when it comes to the production of sustainable aviation fuel (SAF).
This is the trilemma for airlines around the world: finding a formula for SAF production which meets demand, satisfactorily reduces emissions and doesn't break the bank.
It is said that SAF stands to mitigate up to 65% of the sector's carbon emissions under its net zero strategy, but IATA's report reveals that the current production levels are significantly lower than required.
Although sustainable fuels have been used to fly planes in recent years, it's clear that SAF is still a technology without maturity.
Research and development teams understand their responsibility and the pressure they are under to make breakthroughs.
Regardless, IATA's point is simple: things must improve if the aviation industry is to neutralise its carbon footprint by 2050.
Taking stock of global SAF production
Recent data from IATA shows that global SAF production hit one million tonnes in 2024, doubling the figures from the previous year.
Yet, this production still doesn't meet the forecasted demand of 1.5 million tonnes.
Alarmingly, the current production of SAF contributes a mere 0.53% towards the total fuel needs of the aviation industry.
“SAF volumes are increasing, but disappointingly slowly,” explains Willie Walsh, Director General of IATA.
“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.”
Challenges including limited feedstock options, the high cost of production, lacking infrastructure and policy hurdles play a critical role in restraining the expansion of SAF supply, while the reliance on constrained resources like used cooking oils and biomass only exacerbates the production issues.
According to Conor Madigan, CEO of Aether Fuels, exploring new feedstock forms is essential.
“A critical part of the solution is unlocking new forms of feedstock — waste carbon that can be economically turned into fuel and, importantly, is widely available enough to meet the huge demand of these industries,” he says.
The importance of policies and collaborations
"We’re essentially a hard-to-abate sector with limited options for reducing our environmental impact,” says United Airlines' CSO, Lauren Riley, speaking to the necessity of finding a solution to SAF production.
One of those solutions that the IATA and industry leaders like Lauren agree on is the use of robust government policies.
The US Inflation Reduction Act, for example, has had a "historic" impact on the R&D around SAF, according to Lauren.
However, it's also important to stress the importance of collaborations in the scaling of SAF.
Sara Bogdan, the Head of Sustainability at JetBlue, understands that the industry requires robust partnerships to enhance SAF market growth.
“While we’re taking the steps we can on our own to reduce emissions, we also recognise the airline industry can’t reach their goals alone and must continue to encourage the growth of the SAF market," she explains.
"Despite that growth and our eight separate partnerships established for current and future SAF supply, there continues to be a need for more affordable SAF.”
The airlines taking proactive steps to progress SAF production
Airline companies, alongside energy corporations, are earnestly addressing the challenges related to SAF.
For instance, Emirates collaborated with Shell Aviation to offer SAF on its flights from Heathrow Airport.
This initiative aligns with the airport’s SAF Incentive Programme, which Adel Al Redha, Emirates’ Chief Operations Officer, cites as a compelling movement to boost SAF usage grounded in actual demand and supply chain capabilities.
“London Heathrow’s SAF initiative also demonstrates credible action to encourage the scale up and use of SAF by airlines, building local production capabilities grounded in real demand, in addition to developing capacities across the supply chain to blend, handle and distribute SAF more widely,” he says.
JetBlue has also expanded its investments within the SAF sector by supporting tech innovations and companies like Aether Fuels.
Amy Burr, President of JetBlue Ventures, believes that investment in companies like Aether is crucial if SAF production is going to successfully accelerate.
"We see their mission to unlock a broader range of SAF feedstock as a vital step on the road to net zero flying," she explains.
Will SAF become a feasible alternative to fossil fuels?
It's plain to see that companies are deeply invested in the scaling of sustainable aviation fuel and there are lots of initiatives and projects that can give us hope for a decarbonised aviation sector.
Despite the hurdles that lay ahead, commitment remains strong amongst all those with a stake in the scaling of SAF.
“Governments can accelerate progress by winding down fossil fuel production subsidies and replacing them with strategic production incentives and clear policies supporting a future built on renewable energies, including SAF,” Willie says.
With ongoing collective efforts, SAF promises to be not only a sustainable choice but also a competitive alternative to traditional fossil fuels, crucial for achieving wider ecological and economic objectives.
For further insights and discussions, Tom Byrne, Head of Net Zero and Environment at British Airways will delve deeper into these topics at Sustainability Magazine's upcoming Net Zero event on 5 and 6 March, get your tickets now by clicking this link.
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