The airline industry is increasingly embracing sustainable aviation fuel (SAF) as a critical solution in the quest for decarbonisation. SAF represents a renewable energy source with far lower carbon emissions compared to traditional fossil fuels, contributing up to 80% reductions in greenhouse gases. This renewable nature comes from the fact that SAF is derived from sustainable sources, rather than the conventional fossil-based options.
The production of SAF adheres to rigorous sustainability standards, focusing on minimising land use impacts and protecting biodiversity. It’s primarily produced from renewable feedstocks such as used cooking oil, agricultural residues, forestry waste, and non-food crops like camelina and jatropha. Through advanced chemical processes such as pyrolysis, these feedstocks are converted into usable jet fuel, creating a more sustainable alternative for aviation.
SAF is also beneficial in terms of reducing emissions through mechanisms like carbon neutrality, where the CO2 absorbed by plants during growth balances out the emissions generated during fuel combustion. By using waste products and agricultural residues, SAF helps create closed-loop systems, reducing overall waste. Furthermore, SAF offers a higher energy density compared to traditional jet fuels, resulting in greater efficiency during flight operations.
There are several methods for producing SAF. These include Hydroprocessing Esters and Fatty Acids (HEFA), which relies on oils and fats; the Fischer-Tropsch (FT) process, involving gasification of biomass; and Alcohol-to-Jet (ATJ), which transforms alcohol into jet fuel. Each of these approaches has its own advantages and challenges, yet all share the goal of delivering fuel that meets aviation standards. Major players in SAF production include companies such as Neste in Finland, Gevo and World Energy in the United States, and SkyNRG in the Netherlands. Production is focused in regions like North America, Europe, and Asia, with countries such as the United States, Finland, and the Netherlands leading the way.
An interesting aspect of SAF production is the ability to derive it from municipal solid waste (MSW), converting household trash into valuable jet fuel and promoting a circular economy. Forestry residues, too, can be utilised—converting woody biomass through pyrolysis or gasification, helping manage forests and mitigate wildfire risks.
Currently, the cost of SAF is significantly higher than traditional jet fuels, being around two to four times more expensive. The price is influenced by factors such as the availability of feedstocks, production scale, and the technological capabilities involved in its manufacture. Despite these costs, government policies are encouraging SAF adoption through mandates. These SAF mandates require airlines to use a specific proportion of sustainable fuel, which helps reduce carbon emissions across the sector. For instance, the European Union has set a target for a 10% SAF blend by 2030, and similar initiatives are underway in other regions, including the United States.
Businesses involved in aviation need to stay attuned to these mandates, as they vary across countries and regions. Typical SAF blending requirements range between 10% and 50%, with incremental increases likely over time. Compliance with such regulations will become increasingly important as countries push for a more sustainable aviation industry.
In the broader context of the industry’s future, SAF emerges as a promising solution that helps to significantly reduce emissions and foster a more sustainable aviation sector. It holds a crucial role in driving the industry’s shift towards renewable energy and environmental responsibility.
Sustainable aviation fuel offers the aviation industry a tangible path towards reducing carbon emissions and adopting more renewable practices. Though challenges remain—particularly in terms of cost—SAF stands out as a critical innovation to support the industry’s future decarbonisation efforts.
Avation PLC (LON:AVAP) is a commercial passenger aircraft leasing company owning a fleet of aircraft which it leases to airlines across the world. Avation’s future focus are new technology low CO2 emission aircraft.
