Aviation Is Fueling Up for Net Zero

by Paul Hodredge and Cameron Steagall (BSR/Biofuels Diges) ... Currently, the most innovative way for businesses to reduce the aviation component of their Net Zero goals is by investing in sustainable aviation fuel.

However, for SAF to reach its full potential, utilization will need to ramp up significantly. Today, SAF turbine faces two key hurdles to widespread adoption: production and price.

Today, the production of SAF is constrained by raw energy sources. While there are currently nine production methods to create SAF, the majority is produced by Hydroprocessed Esters and Fatty Acids (HEFA). Few refineries today have the technology to utilize HEFA. At the same time, there will not be enough feedstocks of fats, oils, greases, and fatty acids to meet predicted global needs. Some regions will be better suited for alternate production pathways and feedstocks that have yet to take off. Based on current demand, the International Energy Agency predicts HEFA will remain the predominant source for at least the next decade, meaning the availability of SAF will continue to be constrained for some time. However, increased demand will expedite the other eight production pathways and open new regions to opportunities like synthetic SAF production.

The generally low supply and high demand also play into the second major obstacle of price. On average, SAF today costs around three times as much as conventional jet fuel. The price premium leaves many airlines reluctant to invest significantly and lock in long-term contracts given ambiguous deployment timeframes of lower-carbon alternatives like electric and hydrogen. Meanwhile, producers have yet to see substantial demand signals in the market to qualify significant investment in generating more supply.

The International Air Transport Association (IATA) predicts that SAF supply needs to grow from roughly 20.5 million liters today to at least 449 billion liters a year by 2050 for the aviation industry to reach its net-zero commitment. Scaling up SAF requires two direct actions from business: collaboration and SAF Certificate purchases.

We are already seeing robust SAF collaborations and partnerships take off. The Sustainable Aviation Buyers Alliance (SABA) formed by RMI and Environmental Defense Fund (EDF) invites companies to participate in scaling SAF via a rigorous and transparent certification scheme. Clean Skies for Tomorrow (CST) under the World Economic Forum aims to make SAF more affordable. There are also formal partnerships between companies, such as DB Schenker and Lufthansa Cargo’s fully SAF-powered freighter flights between Frankfurt and Shanghai. The fuel requirements for these weekly flights are completely covered by SAF, which has saved 31,000 tons of CO2 emissions since the end of 2020.

One set of guidelines known as the SAFc Framework, published by the Smart Freight Centre (SFC), helps companies get their footing when first obtaining SAF Certificates. This framework addresses both cargo and business travel and is the first step towards a formalized book-and-claim system.

There is no time to wait for the next unknown and unguaranteed technology to emerge; it is up to companies to act now. Immediate corporate investment in SAF ensures the aviation sector a hope of reaching its 2050 net zero goal and corporations an accessible way to reduce their carbon footprint inside their operations. Scaling SAF together is the most effective way to decarbonize aviation now. READ MORE