The global push for sustainable aviation fuel (SAF) is intensifying as the aviation industry seeks to decarbonize, but significant hurdles remain. SAF, which can reduce lifecycle carbon emissions by up to 80% compared to conventional jet fuel, currently accounts for less than 0.1% of total aviation fuel consumption. Major producers are scaling up, with companies like Neste and World Energy operating commercial facilities, but production costs remain 2-4 times higher than fossil jet fuel.
Technological advancements are focusing on new pathways like alcohol-to-jet and power-to-liquid fuels to diversify beyond current hydroprocessed esters and fatty acids (HEFA) production, which relies on limited feedstocks like used cooking oil. The International Air Transport Association (IATA) estimates that SAF could contribute around 65% of the reduction in emissions needed for aviation to reach net zero by 2050. However, this requires a massive increase from the roughly 600 million liters produced in 2023 to an estimated 449 billion liters annually by 2050.
Policy support is critical for scaling. Initiatives like the U.S. Inflation Reduction Act tax credits and the EU's ReFuelEU Aviation mandates, which require increasing blends of SAF at EU airports, are driving investment. The challenge is ensuring sufficient, sustainable feedstock supply without impacting food security or causing deforestation, while bringing down costs to be competitive.
