The production of sustainable aviation fuels (SAF) has more than tripled in 2022 compared with the previous year, according to data from the International Air Transport Association (IATA).
IATA estimates that SAF production will reach at least 300 million litres this year, up from just 100 million litres in 2021. Although other industry estimates put the amount of SAF being produced in 2022 as high as 450 million litres.
The airline association said that the production estimates put the SAF industry on the “verge of an exponential capacity and production ramp-up”, which could lead to 30 billion litres of the fuel being produced annually by 2030 “with the right supporting policies” from governments.
SAF, which can reduce carbon emissions by up to 80 per cent compared with traditional jet fuel, is currently expected to account for 65 per cent of the reduction in CO2 emissions required for the airline industry to reach its net-zero target by 2050. To meet this goal, an estimated 450 billion litres of SAF would need to be produced annually by 2050.
Willie Walsh, IATA’s director general, said airlines had used “every drop” of SAF this year, despite the fuel being more expensive, and would have purchased more if it had been available. So far, around 450,000 commercial flights have used SAF which can be “dropped in” and mixed with regular jet fuel.
“That makes it clear that it is a supply issue and that market forces alone are insufficient to solve it,” argued Walsh. “Governments, who now share the same 2050 net-zero goal, need to put in place comprehensive production incentives for SAF. It is what they did to successfully transition economies to renewable sources of electricity and it is what aviation needs to decarbonise.”
A succession of airlines have signed SAF supply deals this year, while many have also created new platforms for corporate clients and individual travellers to contribute towards the cost of purchasing the sustainable fuel. This includes Virgin Atlantic, Air France-KLM and British Airways among others.
Meanwhile, in the TMC world, American Express Global Business Travel has teamed up with oil company Shell and Accenture to launch the new Avelia book-and-claim platform for the purchase of SAF by corporate clients.
Across the Atlantic, the Global Business Travel Association (GBTA), alongside other industry groups, is urging the US Treasury Department to “quickly adopt” guidelines on tax credits for SAF producers. Earlier this year, GBTA successfully lobbied the US Congress to implement these tax credits for SAF production as part of the Inflation Reduction Act.
Meanwhile, IATA is also to work with the Travalyst coalition of travel and technology companies to give passengers a “consistent, accurate and widely available calculation” of their carbon footprint from air travel. They will also work towards a “shared position” on how to account for the use of SAF.
Sally Davey, CEO of Travalyst, explained: “Travellers want and need clear and unequivocal information about their carbon footprint on which to base travel decisions.
“Today we are bringing some of the leading travel brands around the table with the world's leading airline association, with the aim of easily providing consumers with the most accurate carbon calculations.”