The Energy Industries Council report has revealed that high cost and limited feedstock are key hurdles facing the scaling of global sustainable fuel production.
Sustainable fuel (SAF) has the potential to lower CO2 emissions by up to 80% compared to conventional jet fuel.
Despite this, the EIC’s new report has found that current production represents a fraction of total aviation fuel usage, less than 1%.
As the sector transitions to net zero, it is crucial to overcome challenges such as feedstock access, increased investment, and the need for robust government policies.
Addressing the complexities of scaling SAF production, Nabil Ahmed, the report’s author and EIC Analyst, said: “While SAF has numerous environmental benefits, its adoption is not without challenges. High production costs, two to four times that of traditional jet fuel, alongside the limited availability of scalable feedstocks, present significant hurdles.
“Yet, with strategic initiatives and enhanced governmental support, including mandates and subsidy mechanisms, we can effectively navigate these challenges.”
The report emphasises a need for a diversified approach to feedstock development and an increase in green hydrogen and carbon capture activities for efuels.
Ambitious global SAF targets
Still in its nascent stages, the global SAF market requires substantial development to make a meaningful impact.
However, some countries have set ambitious targets, including the US, UK, Canada, and Japan, each aiming for a 10% SAF blend by 2030.
Introduced by the European Commission on 14 July, 2021, the ReFuelEU Aviation initiative aims to promote the use of sustainable aviation fuels. By 2030, the goal is to increase the share of sustainable fuels to at least 5% of the total aviation fuel consumption in the EU.
The targets point to a trend in sustainable fuel project announcements, with projections suggesting the potential for 50 million tonnes per annum of SAF production by 2030.
This growth represents vast opportunities for the supply chain, highlighting the importance of strategic focus on feedstock availability and research into new sustainable fuel production pathways.
Emerging SAF production projects
Aviation is intrinsically reliant on high-energy-density fuels. To reduce the industry’s carbon footprint, 104 SAF projects are earmarked for development. This signals an industry on the brink of evolution despite scalability challenges.
Ahmed added: “The innovative production of SAF, using resources ranging from agricultural waste to the pioneering efuels generated from carbon capture and green hydrogen, is a clear indicator that the sector, with proper investment in this area, stands a clear chance to shift towards sustainability.”
North America has the most SAF projects, followed by Europe and its key players: the UK, the Netherlands, and Sweden. This global effort highlights a collaborative push towards sustainable aviation.
As the industry strides towards its ambitious 2030 targets, the role of SAF is increasingly important.
A concerted effort, innovation, and policy intervention are needed to scale sustainable fuel production and adoption.
