Sustainable Aviation Fuel

In an effort to create renewable energy sources to power air travel, the industry has looked to leverage biofuels often derived from cooking oil waste. However, sustainable aviation fuels (SAF) can conjure up the image of airliners flying overhead spreading the smell of fish and chips. SAF volumes reached 600 million liters in 2023, double the volume achieved in 2022. Although 2024 production is expected to triple, this growth is still only likely to meet 0.5% of the aviation industry’s fuel needs.

Feedstock and refining capacity, as well as price, remain obstacles to growth in the long term. Palm oil is one input, and 85% of SAF facilities coming into play in the next five years will use technology reliant on inedible animal fats, used cooking oil and industrial grease, all of which there are only limited quantities. At one regional airport nestled in the Alps, SAF is available, but at three to four times the price of regular JET A-1 fuel.

Source: Bloomberg New Energy Finance, IATA December 2023