Since the first test flight using sustainable aviation fuel (SAF) in 2008, technological progress has been remarkable. However, uptake remains small, due to SAF still being produced in relatively small quantities. The remaining hurdles to large-scale usage are mostly political.
For SAF to be scaled up to commercially viable levels, substantial investment is needed to develop the refining and processing capacity. Moving from the test phase to large scale production can be financially risky at first, and policy makers who have the available tools and mechanisms must act to bridge the funding gap and enable progress in this new industry. This could be by direct investment or by providing support and incentives to the private sector.
Once investment in SAF facilities becomes less risky, the cost of production will fall and the new SAF will become more competitively priced.
As the economic potential of SAF is increasingly demonstrated, traditional energy companies are expected to invest in SAF. We are already starting to see this happen with increasing numbers of SAF commitments and production facilities being announced.
Development of the SAF industry also makes economic as well as environmental sense:
- up to 14 million jobs could be created or transferred from fossil fuel energy jobs
- new energy industries could create opportunities worldwide, compared to fossil fuels, which come from only 22 countries.
For more information, see the ATAG Beginner's Guide to Sustainable Aviation Fuel 2023.