The aviation industry contributes significantly to global economic development and international connectivity. However, it also contributes substantially to global carbon emissions. Aviation accounts for approximately 2-3% of total global carbon emissions. With passenger traffic and air transport projected to grow significantly in the coming decades, aviation emissions are also expected to rise exponentially if no mitigation measures are taken. This is where sustainable aviation fuels (SAF) come into the picture. SAFs have the potential to reduce aviation’s carbon footprint substantially while allowing continued growth of the sector.
What are Sustainable Aviation Fuels?
Sustainable aviation fuels Market, also known as alternative jet fuels, are made from sustainable feedstocks such as waste oils and agricultural residues through fuel production processes. They are ‘drop-in fuels’ which means they can be blended with conventional jet fuel or used standalone in aircraft without requiring engine modifications. They have similar performance characteristics as conventional jet fuel. Some examples of SAFs are:
– Hydroprocessed Esters and Fatty Acids (HEFA): Produced from used cooking oil, grease or non-edible oils through hydrotreating.
– Synthetic Paraffinic Kerosene (SPK): Produced through Fischer-Tropsch process using biomass feedstocks like sugarcane residues.
– Alcohol-to-Jet (ATJ): Produced through hydrotreating of alcohols derived from sugarcane or cellulosic biomass.
The key advantage of SAFs over conventional jet fuel is their significantly lower lifecycle carbon footprint. Depending on feedstock and production pathway, SAFs can reduce lifecycle emissions by 50-80% compared to petroleum-based jet fuel.
Regulatory Push for Sustainable Aviation Fuels
Various aviation regulatory bodies and government agencies are playing an active role in promoting the uptake of SAFs. In 2016, ASTM International approved specific standards for three major SAF production pathways. The European Union introduced its Renewable Energy Directive mandating a minimum 0.5% share of SAF in aviation fuels by 2020 across all EU member states.
In 2019, the Commercial Aviation Alternative Fuels Initiative (CAAFI) helped establish a new ASTM standard for HEFA-SPK production from used cooking oil. Many governments provide policy support through tax incentives, grants and loans for SAF producers and airlines. For example, the US Department of Agriculture and Department of Energy provide funding support for research and commercial scale demonstration projects.
Growing Commercialization of Sustainable Aviation Fuels
Spurred by supportive regulations and government initiatives, commercial production and use of SAF is scaling up steadily across major aviation markets. For more details, refer to the market outlook section. Major biofuel producers like Neste, Total, and World Energy are commissioning large scale SAF plants across North America and Europe with annual capacities of several million gallons.
Leading airlines are also entering long-term offtake agreements and partnerships with SAF producers to help secure supply. In 2018, United Airlines operated the first commercial flight with 100% SAF on one of its flights from Chicago to Los Angeles in partnership with World Energy. Other airlines flying with high SAF blends include KLM, Lufthansa, Scandinavian Airlines and JetBlue.
Airport operators are playing a key role in establishing SAF infrastructure. Airports like Los Angeles International Airport, San Francisco International Airport and Amsterdam Airport Schiphol have constructed dedicated tanks, pipelines and refueling facilities to enable supply of blends containing over 30% SAF. With growing infrastructure and supply chain, barriers to large scale commercialization of SAF are gradually being addressed.
Market Outlook
For more details on global SAF market outlook, refer to the dedicated research report published by Coherent Market Insights. In summary, the global SAF market is projected to witness strong growth in the coming decades driven by supportive regulations and initiatives to reduce aviation’s carbon footprint. North America and Europe currently dominate SAF production and consumption. However, emerging economies in Asia Pacific and Latin America are expected to play a bigger role in future as domestic aviation demand grows rapidly in these regions. Factors like carbon pricing, incentives for biofuel blends, strategic partnerships across value chain and ramp up of scalable low-carbon feedstock supply will determine the pace of SAF market expansion. SAF undoubtedly has great potential to help decarbonize the aviation industry, provided enabling conditions are provided to scale up production and usage.
Conclusion
Sustainable aviation fuels present the most viable solution today to reduce aviation’s carbon emissions in line with climate targets. With technology maturation, commercial scale-up, supportive policies and willingness of industry players to integrate SAF, the prospects of substantial emissions reductions appear promising. However, massive investments across the SAF value chain will be needed to increase supply and bring costs down to achieve larger blend mandates in future. Coordinated global efforts among stakeholders can help catalyze this energy transition in aviation and realize SAF’s carbon abatement potential.
