Sustainable Aviation Fuels III - Industrial Landscape

In the previous instalment of the Sustainable Aviation Fuels (SAF) article series, we had a look at the technologies which are currently available for the production of SAF, and which currently supply the market. In addition, we also provided an overview of two up-and-coming technologies which are likely to revolutionise the aviation sector: e-fuels and hydrogen propulsion.

The first commercial partly SAF-powered flight took place in 2008 and was spear-headed by Boeing, Virgin Atlantic and GE Aviation. The International Air Transport Association (IATA) now estimates that since 2016, more than 370,000 flights were performed using a blend of SAF, across 45 airlines worldwide. Late in 2021, United Airlines performed the very first commercial flight powered by 100% SAF. The SAF industry is evolving rapidly, driven by the continuous and increasing regulatory support across the world, and by the sustainability commitments announced by multiple leading private businesses and initiatives.

The continued use of fossil resources without a plan to transition to low carbon sustainable fuels is no longer a viable business model for airlines and suppliers. Although some studies have predicted that at current use rates oil and gas extraction sites will dry up in around 50 to 60 years, or at least that fossil resources are finite, it is also argued that new technologies could allow the oil and gas industry to continue supplying fossil fuels for a lot longer. However, it will become increasingly untenable to use such fuels in a zero carbon economy.

Demand is already shifting and more people (mainly younger generations) and businesses, recognize and value sustainable and renewable alternatives over fossil-based options. It is therefore advantageous for businesses to transition to this new demand, and develop lower cost technologies so that demand can be economically met.

In this third and last instalment of the SAF series, we look at the current industrial landscape for SAF, taking a closer look at the key players within the industry and providing a clearer picture of the current market. The sector is currently dominated by a handful of producers and distributers, working alone or in partnership to establish SAF supply chains. This article demonstrates that these companies use a range of the technologies we have previously reported on, showing that SAF production is a flexible, reliable and deemed to be an economically viable investment under current and emerging drivers for uptake.

The full article you may read here.