A new framework for decarbonizing global air travel drives the aviation industry’s green agenda. Sustainable aviation fuel supply and cost reduction are essential elements of this initiative.
Last week, the International Civil Aviation Organization announced a plan to advance the global supply and adoption of SAFs at the Third Conference on Aviation Alternative Fuels in Dubai.
CAAF/3 Summit: Sustainable Aviation Fuel Framework
Several critical strategic directions resulted from the CAAF/3 summit. By 2030, the industry aims to achieve a 5% reduction in the carbon intensity of aviation fuel at the global level compared to today’s fossil fuel benchmarks. The framework recognizes the varying capacities among states, with some advancing while others face challenges in SAF development.
Proposed initiatives include building capacity, a “Finvest Hub” to support funding of SAF development, and voluntary technology transfer to democratize state participation in the global SAF market. Ensuring a balance between the industry’s environmental targets and regional capabilities for SAF production is essential.
Leaders of the Asia Pacific Airlines Association recently pledged to work together towards a sustainable aviation fuel (SAF) utilization target of 5% by 2030. While committing to the target, they highlighted that SAF production is still in its early stages worldwide and that a sufficient supply of SAF is crucial to reduce CO2 emissions in international aviation effectively.
World Travel And Tourism Council Support
With more corporate and leisure travelers considering their carbon footprint when making their travel plans, the World Travel and Tourism Council lent its support to the ICAO CAAF/3 framework.
Julia Simpson, WTTC President & CEO, said: “This is not solely an aviation challenge. Governments, SAF producers, investors, and all stakeholders need to collaborate to accelerate the development and adoption of SAF to ensure a more sustainable and resilient sector.”
Sustainable Aviation Fuel Demand Exceeds Supply
There is a considerable gap between the supply of SAF and demand. The sustainable fuel supply is around 0.2% of total jet fuel consumption in 2023. SAF is also more expensive than fossil-based jet fuel. Airlines have incurred an extra $500 million in fuel costs by adopting SAF in their fuel-supply chain. Furthermore, the industry is witnessing an increasing trend of airlines integrating into the supply chain through investment and establishing forward purchase agreements totaling approximately $45 billion.
Airline Actions Reflect Commitment To Sustainable Flight
ICAO’s host for the CAAF/3 summit, Emirates, has partnered with Shell Aviation to ensure a sustainable fuel supply at their hub in Dubai International Airport. The agreement secures the supply of over 300,000 gallons of blended SAF for Emirates.
JetBlue was an early adopter, committing to sustainable aviation fuel in 2016 by signing a SAF purchase agreement with bioenergy company SG Preston.
At the time, the ten-year agreement was the most significant long-term commitment by any airline worldwide for renewable jet fuel, using hydro-processed esters and fatty acids produced from plant oils. JetBlue committed to buying 33 million gallons of blended jet fuel annually.
Some environmentalist groups object to SAF derived from plant-based sources. Detractors claim airlines will rely on unsustainable feedstocks for SAF supply, but airlines say otherwise. They claim their long-term plan is only to obtain SAF supply from sustainable sources. Recent industry efforts, including pursuing SAF derived from carbon dioxide, point in that direction.
Recently, United Airlines signed an offtake agreement with Cemvita Corporation to supply up to 1 billion gallons of SAF from Cemvita’s full-scale SAF plant. Cemvita is committed to supplying United Airlines with up to 50 million gallons of SAF, derived from CO2, each year for the next two decades.
Lufthansa Airlines, the German Aerospace Center (DLR), Airbus, Flughafen München GmbH, and MTU Aero Engines signed a Letter of Intent to advance research and development of Power-to-Liquid PtL aviation fuels, the next generation of SAF, which some predict would have the most positive impact on aviation’s carbon reduction.
IATA Calls For Government Action To Encourage Private Investment
The International Air Transport Association’s Director General, Willie Walsh, said: “We need to see governments acting on the CAAF/3 declaration with policies that expand SAF production in all its shapes and forms. Despite unequivocal demand signals, the SAF production market is not developing fast enough. We need SAF everywhere in the world, and to that end, the right supportive policies – policies that can stimulate production, promote competition, foster innovation, and attract financing – must be put in place today.”
IATA expects quick governmental action to implement robust policies to foster the full potential of the SAF market, spurring a significant upsurge in production.
The airline association suggests governments allow producers to leverage local feedstock resources fully and offer affirmative incentives instead of punitive measures. The association also encourages governments to harmonize their support for different energy sources, prioritizing renewable energies and ensuring an equitable share for SAF.
The CAAF/3 declarations reaffirm that achieving net-zero carbon emissions in aviation requires the collaboration of the entire supply chain, with public funds paving the way for private investment.
“The goal is maximizing SAF production everywhere with positive, not punitive, policy measures. Airlines are ready with open arms to catch the resulting SAF production,” said. “While airlines are at the sharp end of decarbonization, they cannot bear the burden alone. CAAF/3 has again made it clear that aviation’s decarbonization will require the wholehearted and united efforts of the entire value chain and governments as we all focus on net zero by 2050. To be perfectly clear, where government money leads, private money will follow. It is absolutely essential that governments play their part, and we will certainly play ours.”
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