US poised to produce 89% of global SAF this year

Sustainable aviation fuel production is on track to reach 460,000 gallons in the United States this year, or 1.74 billion liters — about 89% of IATA ’s global projection for the fuel 2024. [caption id="attachment_57136734" align="alignright" width="300"] (Courtesy/Bloomberg)[/caption] An August report from sustainable practices and analysis company Sustainable Aviation Futures shows that the U.S. is poised to produce the majority of the world’s sustainable aviation fuel (SAF) through fuel makers World Energy , Montana Renewables , Phillips 66 and Diamond Green Diesel by the yearend. While SAF use is mandated in Europe at a 2% blend beginning in 2025 , the U.S. has taken an incentive-based approach for production and usage, along with $291 million in recently announced government–funded sustainability projects. The global p roduction of 1.9 billion liters of SAF this year would be 0.5% of the projected 450 billion liters needed to reach net zero by 2050. “SAF remains in the early stages of market development and commercialization, and its path to become a commercially viable, cost-competitive substitute to jet fuel remains uncertain,” according to the report. “The industry faces challenges that are familiar to the renewables industry and new technology generally, including logistical limitations, backlogged and time-consuming permitting processes, technology risk, and inconsistent policy incentives.” However , the report’s production outlook positions the U.S. as a leader in global aviation sustainability, setting an example for other regions to follow, Brandon Fried , executive director of the Airforwarders Association , told Air Cargo Nex t . “On the economic side, increased SAF production will likely create jobs and help reduce fuel costs for airlines, making cleaner fuel more accessible,” he said. “Environmentally, exceeding projections would accelerate efforts to lower aviation’s carbon emissions and move toward net-zero goals.” SAF feedstocks and cost SAF, typically produced from waste materials including used cooking oil, agricultural residues and animal fats, is about two to five times the cost of traditional jet fuel, which is about $2.13 per gallon , according the the U.S. Energy Information Administration . Industry leaders and government officials have encouraged diversification of SAF feedstocks to meet the net zero deadline by 2050. There are still “challenges that remain,, such as ensuring feedstock availability and expanding infrastructure to support this growth,” Fried said. “Additionally, this progress could drive more global partnerships, helping to standardize and scale SAF use worldwide.” British SAF producer Firefly Green Fuels in August announced it will collaborate with Baltimore-based waste capture and conversion provider Synagro Technologies to scale SAF production in the U.S. Firefly creates SAF using human waste it is plentiful, spokesperson Callum Stewart previously told Air Cargo Next . As an industry, “we are on track to meet IATA deadlines, but time remains of the essence, and we need governments to full-throatily support SAF production in order to get there,” Stewart said. “Confidence in SAF as a solution remains very high though, and novel pathways like ours are really opening up new possibilities for the industry.” Improved infrastructure Some of the logistical issues facing SAF, such as a fuel transportation infrastructure that is already constrained at major hub airports — and others — across the U.S., are not unique to SAF production, according to Sustainable Aviation Futures’ report. “SAF production will benefit from overall increases in fuel transportation capacity,” the report stated. “However, SAF faces additional logistic hurdles that will need to be overcome, like the inability to transport 100% SAF in petroleum pipelines and the need for additional infrastructure for blending and storage at terminals and airports.”

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