Air Cargo

also play a role in creating demand, by voluntarily using SAF for their air cargo related activities.”

Neste is increasing its SAF production capacity 15-fold with ongoing investments in its Singapore and Rotterdam refineries. “By the end of 2023, we will have an annual SAF production capacity of 1.5 million tons.”

CargoAi offering freight forwarders and their clients an option to reduce the carbon emissions of their air cargo transports by purchasing Neste MY Sustainable Aviation Fuel when booking a cargo transport,” the Neste spokesperson said.

The partnership between Neste and digital solutions provider CargoAi provides an opportunity for a customer to buy fuel when booking cargo transport – either after the booking confirmation or during cargo tracking.

In an online interview with supply chain consultancy Alcott Global, CargoAi CEO Matthieu Petot said that several steps have been taken to boost sustainability levels. “The first step was to measure all the CO2 for all the flights very accurately. Now, we are measuring and comparing to the rest of the industry. That’s what we call the ‘Efficiency Factor’.”

Project cargo movers face no operational hurdles to using SAF as it is available today. “SAF is a drop-in fuel which can be used in existing aircraft and is ASTM certified to be used as regular jet fuel and delivers a similar performance as its fossil counterpart,” said the Neste spokesperson.

Petot added that SAF is the “best solution” in reducing carbon emissions. “It is a bit expensive, but it is the undisputed way to reduce carbon levels.”

Price Tag for Sustainability

But that cost is a big hurdle to overcome. While delivering project cargo by air may be fast and reliable, this comes at a price. As well as handling and security costs, there is the hefty price tag of fuel. As well as an airline charging higher rates to a customer to cover the price of fuel, this problem is magnified when counting the cost of low emission fuel.

In general, SAF is three to five times more expensive than conventional jet fuel. Neste said: “Fuel is a major cost factor for airlines, which are still recovering from the pandemic, so this might be a factor.”

However, the Neste spokesperson added that there is a big difference as the cost of carbon and climate impact is not included in the price of fossil jet fuel. “So, the question should not be ‘What does SAF cost?’ but rather ‘What will it cost if we don’t use SAF?’”

“To put it into perspective: although it is not specifically an air cargo example, in the coming years, the cost impact of using SAF on a ticket will be no more than the cost of a coffee and sandwich at the airport.”

Creating Demand

Neste said that another big challenge is to ramp-up SAF production; currently it only represents around 0.1 percent of total global jet fuel consumption. “In addition, governmental policy support is crucial to create the demand certainty needed to attract the investments into new production capacity, as building new refineries is highly capital intensive. Next to that, companies can

Can greater sustainability take off in the world of airborne project cargo? Lufthansa Cargo suggests that this will be a key driver in the future of air freight logistics. This is a logical extension of the greater awareness of protecting the climate in the air industry. Inroads such as specially designed fuel, automation and surface technology have already been made, with more breakthroughs in technology anticipated in the future. However, Lufthansa added that it is important that sustainable fuel quota rules should be designed to “ensure fair competitive conditions.”

“For us, sustainability is a very special priority,” von Boxberg said. “We have set ourselves the ambitious goal of halving our CO2 emissions per kilogram when flying by 2030. Efficient flying and expanding the use of sustainable fuels are the focus. But to really make a difference, we need to think holistically about the issue and also take smaller measures such as loading equipment optimization and recycling seriously. We are convinced – every contribution counts.”

“We still have a long way to go to net zero carbon emissions but the key message is that we don’t have the luxury of waiting anymore,” the Neste spokesperson added. “We need action, and we all share this responsibility as combating climate change is a global challenge overarching all sectors. We have a solution available today (SAF), so let’s fully utilize this while at the same time work on the solutions of tomorrow.”

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