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Platts Future Energy
All Things Aviation: The many pieces of SAF policy and production (part 3)
Oct 8, 2024
Ina Chirita, the Europe lead on biofuels research at S&P Global Commodity Insights, and Jamie Dorner, the US biofuels Senior Principal Research Analyst, dive deep into the evolving landscape of Sustainable Aviation Fuel (SAF). They discuss how different policies in Europe and the US impact production, highlighting Europe’s strict mandates versus America's incentive-based approach. The challenges of feedstock availability and fluctuating market conditions are explored, along with predictions for future SAF production capacities and their implications for the global market.
22:18
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Quick takeaways
- The global transition to sustainable aviation fuel is influenced by diverse national mandates, with Europe aiming for 70% SAF by 2050.
- Production pathways for sustainable aviation fuel are evolving, transitioning from HEFA to emerging methods like alcohol-to-jet and gasification by 2050.
Deep dives
Policy Updates on Sustainable Aviation Fuel
The implementation of sustainable aviation fuel (SAF) mandates is gaining traction globally, significantly impacting the aviation industry's transition to net zero emissions. Brazil is set to enact the Fuel of the Future bill, raising its ethanol mandate and introducing a SAF mandate that aims for a 10% emissions reduction by 2037. In contrast, the U.S. lacks federal mandates but offers incentives through the Inflation Reduction Act, encouraging SAF production with credits that will change in 2025. Meanwhile, Europe leads with structured mandates, aiming for a gradual increase to 70% SAF by 2050 under the refuel EU aviation regulation.
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