While there is an increasing push for the aviation sector to use sustainable aviation fuels (SAF), the production and availability of these fuels are far from sufficient to meet rising demand.
This scenario looks set to continue into the foreseeable future, while producers try to ramp up production.
This challenge has implications for airlines that are required to comply with SAF mandates.
SUPPLY AND DEMAND
Global production of SAF is expected to triple in 2024 to 1.9 billion litres.
The International Air Transport Association (IATA) says that this equals only just above 0.5% of the industry’s SAF needs for the year.
INTRODUCING SUSTAINABLE AVIATION FUEL MANDATES
Some governments have set mandates requiring airlines to purchase sustainable aviation fuel when flying from their territories. This, despite sufficient amounts of SAF being currently made available.
The United Kingdom (UK) intends to regulate the use of SAF by airlines flying out of that country.
The initiative will help the UK’s aviation sector to reduce its environmental impact.
SAF can emit around 70% less carbon over its life cycle than traditional aviation fuels.
ALSO READ: UK to impose SAF requirements for airlines
PENALTIES FOR NON-COMPLIANCE
While there will be SAF mandates, there are no mechanisms to protect airlines from bearing the costs of supplier penalties for shortfalls in production.
SAF producers are not able to meet current demand. Furthermore, the SAF produced is available in small quantities, at high costs.
The challenge for producers is to ramp up production efficiently with diverse feedstocks and production methods.
RAMPING UP SUSTAINABLE AVIATION FUEL PRODUCTION
The UK government intends to have at least five commercial-scale SAF plants under construction by 2025.
In February a Teesworks refinery was given approval to refine Sustainable Aviation Fuel in the United Kingdom.
In addition in March, LanzaTech UK Ltd, a subsidiary of LanzaTech Global Inc, was also given approval to launch a Port Talbot SAF project.
Aircraft manufacturer Boeing has agreed to collaborate with Wagner Sustainable Fuels to increase the availability of SAF in Australia.
ALSO READ: Asking passengers to contribute to SAF: Does it work?
NESTE IMPACT OFFERING
Sustainable aviation fuel (SAF) producer Neste has launched an emissions reduction solution, known as Neste Impact.
The initiative operates along the lines of the “book and claim” approach.
Neste ensures that SAF is delivered to chosen sites (airports) – where it is used to replace fossil-based jet fuel.
