New Delhi – The International Air Transport Association (IATA) announced that it expects Sustainable Aviation Fuel (SAF) production to reach 2 million tonnes (Mt) (2.5 billion liters) or 0.7% of airlines’ total fuel consumption in 2025.
“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs. And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate,” said Willie Walsh, IATA’s Director General.
>> In Other News: Ballard Announces 1.5 MW Fuel Cell Engine Order for Sierra Northern Railway
Most SAF is now heading toward Europe, where the EU and UK mandates kicked in on 1 January 2025. Unacceptably, the cost of SAF to airlines has now doubled in Europe because of compliance fees that SAF producers or suppliers are charging. For the expected one million tonnes of SAF that will be purchased to meet the European mandates in 2025, the expected cost at current market prices is $1.2 billion. Compliance fees are estimated to add an additional $1.7 billion on top of market prices—an amount that could have abated an additional 3.5 million tonnes of carbon emissions. Instead of promoting the use of SAF, Europe’s SAF mandates have made SAF five times more costly than conventional jet fuel.
“This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonization. Raising the cost of the energy transition that is already estimated to be a staggering $4.7 trillion should not be the aim or the result of decarbonization policies. Europe needs to realize that its approach is not working and find another way,” said Walsh.
To support the development of a global SAF market, IATA has worked on two initiatives:
IATA urges governments to focus on three areas:
India, one of the emerging economies on the world stage today, is the third-largest oil user after the US and China. India launched the Global Biofuels Alliance to position biofuels as a key to energy transition and economic growth. This includes a target for 2% SAF blending for international flights by 2028 with enabling policies such as guaranteed pricing, capital support for new projects, and technical standards. IATA will be working with the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and Praj Industries Limited, to provide guidance on global best practices for life cycle assessment of the use of feedstocks in the country.
As the third-largest global civil aviation market, India can strengthen its leadership in biofuels with the accelerated adoption of SAF through progressive policies.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🏭 $800M Baton Rouge BECCS Plant Marks Turning Point for U.S. Carbon Capture 💸 CUR8 Raises Seed Round Led by Airbus Ventures 🌾 New Belgium, Root Shoot Malting, and Olander Farms S...
Inside This Issue 🌎 States Drive Direct Air Capture Forward as Markets Mature 🏭 Aircapture Launches First Commercial DAC Facility in Japan ⚡ Transition Industries Awards Techint E&C and Siemen...
Inside This Issue 🧪 How CF Industries Became the Fertilizer Giant Leading America's Clean Ammonia Revolution 📈 Altitude Expands Ascent 1 Large-scale Financing Facility to 250,000t CDRs ⛏️ Global E...
MAX Power Confirms Lead Target For Canada’s First Dedicated Natural Hydrogen Well
Well licensing begins imminently followed by Q4 drilling MAX Power’s Natural Hydrogen team is assessing at least 20 Lawson “look-a-likes” at Genesis MAX Power releases Saskatchewan Natural Hydroge...
Linde Appoints Sanjiv Lamba As Chairman & CEO
WOKING, England--Linde (Nasdaq: LIN) today announced that its Board of Directors has appointed Sanjiv Lamba, currently serving as Chief Executive Officer, to the additional role of Chairman of the ...
Britain Signs Deals For Carbon Capture Projects Creating 500 Jobs
LONDON, Sept 25 (Reuters) - Britain has signed contracts for two commercial projects to capture and store carbon dioxide emissions which are expected to generate around 500 skilled jobs, the govern...
HOUSTON--(Business Wire)--Transition Industries LLC, a developer of world-scale, net-zero carbon emissions methanol and hydrogen facilities, has awarded Siemens Energy and Techint Engineering &...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.