As the world rapidly shifts focus toward renewables, sustainable aviation fuel (SAF) has become a pivotal piece of the puzzle within the airline industry. But what exactly does SAF entail—and is it a cost-effective replacement for traditional fuels?
This post will provide an in-depth look at SAF, shedding light on its sustainability, production, cost, and regulatory requirements. Use this guide to better understand the primary elements of SAF and inform your own business strategy.
SAF is a renewable energy source primarily due to its significantly lower carbon emissions than traditional fossil-based jet fuels. Unlike conventional fuels, SAF is derived from renewable resources which reduce greenhouse gas emissions by up to 80%.
Additionally, SAF production follows strict sustainability criteria. The process ensures minimal impact on land use and biodiversity.
SAF is made using several renewable sources, including:
These feedstocks are converted into SAF through complex chemical processes such as pyrolysis.
Read More: How Feedstocks from Crops Create Advanced Biofuels
SAF reduces emissions through several mechanisms:
SAF is produced through various processes:
Each type of SAF process has benefits and drawbacks. They all aim to produce high-quality fuel that conforms to aviation standards.
Several companies are leading the charge in SAF production, including:
These companies collaborate with airlines and government bodies to find opportunities to integrate these fuels into aviation operations.
SAF production is spread across the globe. Current production primarily takes place in North America, Europe, and Asia.
Countries like the United States, Finland, and the Netherlands are at the forefront of SAF production. These nations leverage both technological advancements and policy support to drive innovation.
SAF can be produced from municipal solid waste (MSW). Advanced conversion technologies enable the transformation of household waste into fuel and promoting a circular economy.
Forestry woody biomass can be converted into SAF through processes like pyrolysis and gasification. Forestry residues provide a renewable energy source while also aiding in forest management and reducing wildfire risks.
The cost of SAF varies based on the feedstock used and the production process.
Currently, SAF costs two to four times more than traditional jet fuel. Multiple factors can influence the price:
The higher cost of SAF is attributed to several factors:
Several governmental bodies provide various incentives and tax breaks to promote SAF usage.
For instance, the United States provides tax credits using the Renewable Fuel Standard (RFS) and Low Carbon Fuel Standard (LCFS) in California. These incentives aim to offset the higher costs and encourage widespread adoption.
The SAF market is expected to grow substantially, driven by increasing regulatory mandates and corporate sustainability goals. Prices are likely to decrease as production scales up and technological advancements make processes more efficient.
Because the market is so new, SAF prices are usually modeled and can vary widely depending on the source. This is why partnering with a trusted market intelligence firm remains so important.
SAF mandates are regulatory requirements imposed by governments to ensure a certain percentage of jet fuel is derived from sustainable sources. These mandates aim to reduce the aviation sector’s CO2 footprint while directly contributing to the adoption of renewable fuels.
Mandates vary by region, but many countries are setting highly ambitious targets. For example, the European Union aims for a 10% SAF blend by 2030. The United States has similar goals under the Sustainable Skies Act.
Businesses need to stay updated on regional, countrywide, and even state-level regulations to ensure compliance. As mandates begin taking effect, these considerations will become even more critical.
Blending requirements also differ by region. Generally, mandates require a blend of 10-50% SAF with traditional jet fuel by 2030. Incremental increases will also take effect in subsequent years.
The exact ratio for SAF blends will depend on regulatory frameworks and technological advancements in the fuel’s production. But you can expect continued ambition in aggressively transitioning aviation to low-carbon fuels and feedstocks.
Sustainable aviation fuel stands as a driving force for the aviation industry's decarbonization efforts. With its wealth of benefits, SAF presents a viable path toward improved emission reductions and a more renewable future.
As the SAF market rapidly changes and grows, understanding what to expect is absolutely essential for stakeholders.
ResourceWise recently held a live webinar covering the current state of the SAF market as we fly toward 2025 and beyond. You can now access it on-demand.
Key Discussion Points:
The webinar is presented by Mat Stone, founder and Managing Director of Prima and ResourceWise's VP of Business Development. With over a decade of experience in the low-carbon fuels and feedstocks market, Mat’s expertise will help you to feel confident about what to expect in this challenging market sector.
Don't miss out on these critical market updates—get access to the webinar today.