The International Air Transport Association estimates for Sustainable Aviation Fuel production is still not enough to supply 0.5pc of aviation needs.
Willie Walsh, the Glasnevin born director general told the IATA global media day in Geneva that in 2023, SAF production reached over 600m litres (0.5Mt), doubling the 2022 production.
SAF accounted for 3pc of all renewable fuels produced, with 97pc going to other sectors.
SAF production is expected to triple to 1.875bn litres (1.5Mt) in 2024, accounting for 0.53pc of aviation’s fuel need and 6pc of renewable fuel capacity.
Despite the impressive growth, SAF’s share of renewable fuel production will only increase from 3pc to 6pc in 2024. This limits SAF supply and keeps prices high.
The Third Conference on Aviation Alternative Fuels (CAAF/3) established a global framework to make aviation fuels 5pc less carbon-intensive by 2030, requiring the production of about 17.5bn litres (14Mt) of SAF.
Demand for SAF is not an issue, as every drop of produced SAF has been bought and used, adding $756m to the fuel bill in 2023.
Unlocking supply to meet the demand is the challenge. Over 78bn litres (63Mt) of renewable fuels are projected to be produced in 2029, and governments must incentivize producers to allocate 25-30pc of their output to SAF.
Effective production incentives for SAF should accelerate investments, encourage sufficient production, focus on regional diversification, prioritize high potential projects, and establish a global accounting framework.
To diversify SAF production, there is a need to increase certified pathways such as Alcohol-to-Jet (AtJ) and Fischer-Tropsch (FT) that utilize bio/agricultural wastes and residue. Policies should promote investment and fast-track certification for new SAF production pathways.
Public support for SAF is significant, with 86pc of travellers agreeing that governments should provide production incentives and prioritize oil companies supplying SAF to airlines.
