Your Guide to Sustainable Aviation Fuels (SAF)

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.

The Basics on Sustainable Aviation Fuels

What Makes Sustainable Aviation Fuel Actually Sustainable?

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.

What Are Sustainable Aviation Fuels Made From?

SAF is made using several renewable sources, including:

• Used Cooking Oil (UCO) and other waste oils from animals or plants.

• Agricultural Residues such as corn stover, wheat straw, and non-food elements of crops like stems or leaves.
• Forestry Residues including woody biomass and leftover sticks and branches after harvest.

• Municipal Solid Waste (MSW) including household trash.

• Non-Food Crops such as camelina and jatropha.

These feedstocks are converted into SAF through complex chemical processes such as pyrolysis.

Read More: How Feedstocks from Crops Create Advanced Biofuels

How Do Sustainable Aviation Fuels Reduce Emissions?

SAF reduces emissions through several mechanisms:

• Carbon Neutrality: The carbon dioxide absorbed by the plants used to make SAF offsets the CO₂ emitted during fuel combustion.

• Closed-Loop Systems: By utilizing waste products and residues as feedstocks, SAF helps create closed-loop systems that minimize waste.

• High Energy Density: SAF has a higher energy density than traditional fuels. This means more energy obtained per unit of fuel which leads to greater efficiency and lower emissions.

SAF Production Fundamentals

How is SAF Made?

SAF is produced through various processes:

• Hydroprocessing Esters and Fatty Acids (HEFA), which utilizes oils and fats.

• Fischer-Tropsch (FT), employing gasification of biomass and subsequent synthesis.

• Alcohol-to-Jet (ATJ), converting alcohol into jet fuel.

Each type of SAF process has benefits and drawbacks. They all aim to produce high-quality fuel that conforms to aviation standards.

Who Makes Sustainable Aviation Fuel?

Several companies are leading the charge in SAF production, including:

• Neste in Finland

• Gevo in the United States

• World Energy in the United States

• SkyNRG in the Netherlands

These companies collaborate with airlines and government bodies to find opportunities to integrate these fuels into aviation operations.

Where Is SAF Produced?

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.

Can SAF Be Made From Solid Waste?

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.

Can You Use Woody Biomass From Forestry for SAF?

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.

SAF Production Cost and SAF Prices

How Much Does SAF Cost and How is Price Determined?

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:

• Feedstock Availability
• Production Scale
• State of Technology, Advancements and Limitations

Why Is SAF Cost So Much More Than Traditional Fuel?

The higher cost of SAF is attributed to several factors:

• Feedstock Costs: Renewable feedstocks are often more expensive than crude oil.

• Production Complexity: The processes to convert renewable materials into SAF are technologically intensive and costly.

• Scale of Production: SAF production is not yet as scaled as traditional fuel production, leading to higher unit costs.

Are There Incentives and Tax Breaks Available for Using SAF?

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.

Are There Listed SAF Prices and SAF Price Forecasts?

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 Blending Requirements and Mandates

What Are SAF Mandates?

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.

When Do I Have to Start Using SAF?

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.

How Much SAF Do I Have to Blend?

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.

SAF Flying to a Greener Future

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.

Get Insights on the 2025 SAF Market with Our On-Demand Webinar

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 current SAF market state and where it’s heading
• Market projections on global SAF market into and beyond 2025
• The impact of SAF mandates as they begin enforcement
• Supply and demand market movement in key areas: EU/UK, US, and Asia
• Future production insights, pathways, and pricing expectations

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.