The aviation industry is responsible for consuming a staggering 380 billion litres of fuel annually, contributing three percent of global CO2 emissions. Sustainable aviation fuels (SAFs) are emerging as the most viable cleantech solution to decarbonise air travel, with startups like Twelve achieving up to a 90 percent reduction in emissions compared to conventional jet fuels. This breakthrough is not just a step forward in sustainability but a significant opportunity for investors looking to be at the forefront of the transition to cleaner energy.
Decarbonising aviation is one of the greatest challenges in the energy transition. Traditional jet fuel, derived from oil products, remains unmatched in efficiency and cost-effectiveness. However, a new wave of sustainable solutions is on the horizon, including electrification, hydrogen propulsion, and aircraft efficiency improvements. While these long-term advancements develop, SAFs stand as the most advanced and scalable alternative available today.
A key advantage of SAFs is their compatibility with existing aircraft infrastructure, eliminating the need for costly modifications. They can be produced from waste materials such as used cooking oil or even through direct carbon capture from the atmosphere, making them a highly sustainable alternative. As demand grows, production capabilities are scaling up, positioning SAFs as a critical player in aviation’s carbon reduction strategy.
The broader alternative fuels sector is also seeing rapid innovation. Biofuels for road transport, synthetic fuels derived from coal, natural gas, or biomass, and renewable options like biomethane and methanol for cargo shipping all contribute to a cleaner energy future. These solutions align with global decarbonisation goals and present lucrative investment opportunities in sectors that are notoriously difficult to transition to net zero.
As technology advances, the ability to cut carbon emissions improves, accelerating the shift to a low-carbon economy. Cleantech solutions such as SAFs not only reduce reliance on fossil fuels but also enhance energy security and independence. In the long run, these innovations could reshape global energy infrastructure, offering sustainable and resilient alternatives to traditional fuels. Investors with an eye on the future have a unique chance to capitalise on the growing demand for clean energy while driving meaningful environmental impact.
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.
