Sustainable Aviation Fuels (SAF) are considered an important means of reducing aviation emissions in the medium run. Despite bold 2030 goals, blending quotas remain low. European airlines are global leaders in SAF use but need to accelerate further to meet the EU's ambitious targets.
Sustainable Aviation Fuels (SAF) are considered an important means of reducing aviation emissions in the medium run. Despite bold 2030 goals, blending quotas remain low. European airlines are global leaders in SAF use but need to accelerate further to meet the EU's ambitious targets.
The aviation industry has faced extraordinary challenges in recent years but has recovered strongly from the pandemic with continued high demand for air travel. One major challenge in this context is that aviation is one of the sectors where greenhouse gas emissions are hardest to reduce.
In addition to fleet renewal programs, which take a long time due to the longlife- cycles of an aircraft, sustainable fuels will play a crucial role in the medium term. While greenhouse gases are still emitted when using SAF, savings can be achieved by blending biofuels into the fuel supply chain. Possible source materials include renewable biomass or used fats.
Depending on their composition, SAF have a different level of potential for reducing emissions. All types of SAF are expected to remain more expensive than conventional jet fuel, which generally accounts for 20–35 % of an airline's total costs. This is important in the low-margin aviation sector.
Sustainable aviation fuel: Reality still far from the target
The International Civil Aviation Organization (ICAO) aims to reduce emissions by 5% by 2030 through the addition of SAF. On the airline side, the International Air Transport Association (IATA) is targeting 6% blending, while collectives such as “Clean Skies for Tomorrow” and “One World Group” (which includes airlines such as American, Qantas and Cathay Pacific) are targeting 10% by 2030. Europe's largest airline in terms of passenger numbers, Ryanair, has committed to 12.5%. The expected blending rate of just 0.5% in 2024 makes it clear that there is still a lot to be done in the next six years.
Governments worldwide have introduced blending mandates ranging from 1% by 2025 (Malaysia) to 10% by 2030 (United Kingdom) to encourage the adoption of SAFs. In Germany, blending deficits can even result in fines. However, these isolated efforts and targets alone are not enough. As SAF prices currently cannot compete with those of conventional jet fuel, more policy support is needed to make SAF more attractive to use. Based on current policies, the International Energy Agency (IEA) expects biojet fuel to only account for 2% of global jet fuel consumption by 2030.
European production of sustainable fuel is expected to increase in the coming years, driven by purchasing agreements secured by European airlines. There are several agreements in place to supply SAFs, including contracts between Air France-KLM and Neste (until 2030) and Total Energies (until 2035). DHL and Lufthansa have also announced procurement agreements.
To meet their blending targets, European countries will continue to rely on the import of various resources and SAFs. In the past, the EU has obtained resources from the east, but some companies have also started to develop supply chains based on agricultural products from Africa.
This example shows that there is still a lot to be done in the coming years to make aviation a little more sustainable. Companies, politicians and banks are equally called upon to implement quick and sustainable solutions.
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This article is based on these two THINK ING posts:
Sustainable Aviation Fuels are the greener option that must take flight | articles | ING Think
Europe leads the way on SAF, but airlines are struggling to hit targets | articles | ING Think