AIRCRAFT DEVELOPMENT 1.qxp_Finance 21/12/2021 12:00 Page 1
SUSTAINABILITY
A Guide to Sustainable Aviation Fuel What is Sustainable Aviation Fuel, and what needs to happen for it to become mainstream within Business Aviation (and the wider aviation community)? Fabrizio Poli explores… ustainable Aviation Fuel (SAF) is an alternative to traditional jet fuel. SAF is made by blending conventional kerosene with renewable hydrocarbon. Because it is certified as ‘Jet-A1’ fuel, no modifications are required for aircraft to use it. This mixture can be handled the same way as jet fuel, so there is no need for changes in fuelling infrastructure, nor aircraft modifications. Any aircraft certified for using the current specification of jet fuel can use SAF. SAF is currently more expensive than traditional jet fuel, but some companies are willing to pay extra if it means helping reduce our carbon footprint. As more research is done, and as technology advances, SAF will become increasingly efficient and, in return, it will become cheaper for customers. Following are some quick facts on SAFs, courtesy of IATA: • Over 370,000 flights have taken to the skies using SAF since 2016 • 100 million litres of SAF were expected to be produced in 2021 • SAF can reduce emissions by up to 80%, during its full lifecycle • Around 14 billion litres of SAF are in forward purchase agreements
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44 Vol 26 Issue 1 2022 AVBUYER MAGAZINE
What are the Economic & Social Benefits of SAF?
Sustainable Aviation Fuel is mainly produced from feedstocks, and therefore can be sourced worldwide across several different feedstocks that can be produced on the large amounts of land that is unviable for food crops. This can simultaneously reduce the exposure to fuel cost volatility that comes with having a single energy source, while introducing a new industry (sustainable aviation fuel production) to developing nations.
How Much Does SAF Cost?
The main challenge to Sustainable Aviation Fuel will be ensuring an adequate supply of sustainable feedstock at a competitive price. The market price of SAF today is still three- to five-times higher than for conventional jet fuel. There is also a limited production capacity available, of around 0.1% of total aviation fuel consumption. Nevertheless, additional production volume is expected. Companies such as SkyNRG and Neste have already announced plans to install new SAF production facilities across Europe. Fuel costs form a significant proportion of an aircraft’s operating cost, meaning price volatility of crude oil affects long-term planning. This is a barrier to entry to the market. Indeed, kerosene is used in the blending process for SAF, www.AVBUYER.com
