SAF: Paving the Way for Aviation Decarbonization
- 2 days ago
- 2 min read
Sustainable Aviation Fuel (SAF) is a lower-carbon alternative to conventional jet fuel, produced from renewable or waste feedstocks, while meeting the same technical standards as jet fuel when blended. It requires no modifications to existing engines or fuel infrastructure and can be blended up to 50% with conventional fuel. The synthetic blending component is co-processed or blended at refineries or terminals, then distributed by pipelines, trucks, and airport hydrant systems.
The current dominant sources today are waste oils and fats because of the market’s maturity and low exposure to land-use changes. SAF also comes from forestry waste, municipal solid waste, and woody biomass. The highest carbon reduction impact method though, is eSAF, which utilizes direct air capture CO₂, biogenic sources, or industrial sources, and renewable electricity for processing. Generally, source materials are available, but delivery and off-take volumes are small because of competing uses and collection logistics.
Production was just under 1% of global aviation fuel usage, and consistent increases are expected in the next few years, driven by scaling effects that can drive cost down, and a handful of government support pillars.
Major buyers today include United, Delta, Lufthansa Group, Air France-KLM, and British Airways, which are increasingly procuring SAF certificates that function similarly to REC purchases, where the carrier owns the environmental attributes of the fuel, and is not necessarily using it in its own jets. SAF typically trades at 2–5 times the price of conventional jet fuel and is expected to have a price premium through 2030 at least.
American Airlines is one of the US carriers working to incorporate SAF. The sustainability team led by Jill Blickstein has a goal to use SAF for 10% of its annual fuel usage by 2030. They’ve signed a one-year offtake agreement with Valero for domestic waste feedstocks in Illinois, as well as a longer-term agreement with Infinium which produces eSAF using renewable energy.
SAF offers the most immediate, scalable decarbonization pathway for aviation, but realizing its full potential requires price improvements and investment in advanced production.
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