The Rise of SAF: Fueling Aviation's Sustainable Transformation

Rise of Sustainable Aviation Fuel (SAF)

The aviation industry’s goal of achieving net-zero carbon emissions centers on significantly reducing emissions at the source. This will be accomplished through the use of sustainable aviation fuels (SAF), the development of innovative propulsion technologies, and various efficiency enhancements, including improvements in air traffic navigation. Sustainable Aviation Fuels (SAFs) reduce CO2 emissions by up to 80% and are made from waste materials, non-food crops, or synthesized by capturing carbon from the air. SAFs recycle CO2 absorbed by biomass, unlike fossil fuels, which release stored carbon.

Rising Demand for SAF

Sustainable Aviation Fuel (SAF) is projected to account for about 65% of the emissions reduction required for the aviation industry to achieve net-zero by 2050. Meeting this demand will necessitate a significant increase in SAF production. The most substantial growth is anticipated in the 2030s as global policy support strengthens, SAF becomes competitive with fossil kerosene, and reliable offset options diminish. In 2023, the production of sustainable aviation fuels (SAF) increased threefold to 600 million liters, up from 300 million liters in 2022, accounting for 0.2% of global jet fuel consumption.

Methane & SAF

• Methane, as a key component of biogas, plays a crucial role in meeting the growing demand for Sustainable Aviation Fuel (SAF). Produced from organic waste under anaerobic conditions, methane can be processed through the SPOCC Reactor to generate syngas, which is then converted into SAF using established technologies.
• Utilizing waste-derived methane offers a sustainable and scalable approach to SAF production, helping to meet the aviation industry's increasing fuel requirements. Importantly, this process yields a fuel with a negative carbon footprint, supporting airlines in reducing emissions while continuing to use their existing infrastructure. 
• As demand for SAF rises, methane from biogas provides a viable, renewable feedstock to accelerate production, contributing significantly to the industry's shift toward cleaner energy.

Sustainable Aviation Fuels in Practice so far

• In June 2023, IATA published strategic roadmaps outlining essential actions for the aviation industry to achieve net-zero CO2 emissions by 2050. These roadmaps focus on various aspects, including aircraft technology, sustainable aviation fuels (SAF), energy infrastructure, operations, finance, and policy.
• In October 2023, the EU adopted the ReFuelEU Aviation Regulation as part of its 'Fit for 55' initiative, establishing legally binding climate targets for key economic sectors. This regulation mandates aviation fuel suppliers to gradually blend sustainable aviation fuels (SAF) with kerosene, starting with a 2% minimum in 2025 and increasing to 70% by 2050.

Recent Investments

• Airbus, the Air France-KLM Group, Associated Energy Group, LLC, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital Inc., and Qantas Airways Limited have joined forces to invest approximately USD200 million in the Sustainable Aviation Fuel Financing Alliance (SAFFA) to accelerate the production of Sustainable Aviation Fuel (SAF). 
• Bharat Petroleum Corporation Limited (BPCL) is set to establish Sustainable Aviation Fuel (SAF) facilities at its three refineries, with an investment of Rs 1,400 crore. The company's refineries, located in Mumbai, Kochi, and Bina (Madhya Pradesh), have a combined refining capacity of 35.3 million metric tonnes per annum. This initiative aligns with the Indian government's objective of achieving a 1% blending of SAF in aviation fuel.
• The U.S. Department of Energy announced a USD 3 billion initiative to significantly increase the country's production of Sustainable Aviation Fuel (SAF) in the coming years. Montana Renewables will receive a loan guarantee of up to USD 1.44 billion to expand its renewable fuels facility in Great Falls, Montana.