Fossil fuels have been crucial in shaping the modern world, enabling us to drive cars, fly across countries, and access goods and services with unprecedented ease. However, the widespread use of fossil fuels is contributing to climate change and environmental instability, threatening the way of life we’ve come to depend on. As a result, there has been a shift towards finding sustainable fuel alternatives. These solutions could drastically reduce global greenhouse gas emissions if deployed on a large scale. Sustainable aviation fuels (SAFs), for instance, can reduce emissions by up to 80% compared to conventional jet fuels.
Sustainable fuels encompass various types, including biomass-based fuels made from organic matter, such as ethanol and biodiesel. Ethanol, often blended into gasoline, is made from crops like corn, while second-generation ethanol uses byproducts like sugarcane residues. Other biofuels include biogas, produced from organic waste, and FAME, a biodiesel made from vegetable oils or animal fats. Additionally, drop-in sustainable fuels, such as biofuels and synthetic fuels, can replace traditional fossil fuels in existing combustion engines without requiring modifications. These fuels can be derived from biomass sources or produced through the combination of captured carbon and low-carbon hydrogen.
The growing use of sustainable fuels is evident, with projections indicating substantial growth in demand by 2030 and even more significant increases by 2050. According to McKinsey, the demand for these fuels could constitute up to 37% of the transportation sector’s energy consumption by mid-century. However, the use of edible crops like corn and sugar for fuel production needs careful consideration to avoid exacerbating global food shortages. Moreover, to meet this growing demand, the industry will need to expand the use of renewable feedstocks, which do not compete with food production.
While electric vehicles (EVs) are gaining popularity for personal transportation, the transition to fully electric commercial vehicles—such as planes, trucks, and ships—will take longer. Sustainable fuels will be crucial in bridging the gap, enabling these sectors to reduce emissions and meet decarbonisation targets. This makes the role of sustainable fuels in industries like aviation particularly important.
Investment in sustainable fuels is increasing, with billions of dollars already committed and further funding necessary to meet global decarbonisation goals. By 2040, the industry may need up to $1.4 trillion to realise its potential. In aviation, sustainable aviation fuel is poised to play a major role, with McKinsey estimating that it could reduce the sector’s emissions by up to 50%. However, SAF production capacity remains limited, and it currently costs three times more than traditional jet fuel. To overcome these challenges, airlines are adopting various strategies, including large-scale offtake agreements, industry partnerships, direct investments, and SAF-focused funds.
The aviation industry is also taking steps to expand SAF production, with major airlines pledging to increase their use of sustainable fuels. While the path to scaling up SAF production is complex, collaboration among stakeholders and continued investment will be key to its success.
The shift towards sustainable fuels offers a promising solution to mitigate the effects of climate change. With continued innovation, investment, and collaboration, these fuels can become a crucial part of our efforts to reduce emissions and move towards a more sustainable future.
Quadrise plc (LON:QED) is an energy technology provider whose solutions enable production of cheaper, cleaner, simpler and safer alternatives to fuel oil and biofuels, proven in real world applications. Quadrise technologies produce transition fuels called MSAR® and bioMSAR™, which allow clients in the shipping, utilities and industrial sectors to reduce carbon emissions whilst also saving costs.
