Redefining Energy

196. Are SAF and Marine Green Fuels worth the Carbon Reductions? - Sep25

30 snips
Sep 22, 2025
Callum McPherson, Head of Commodities at Investec, dives into the intricate world of sustainable aviation and marine fuels. He highlights why electrification is challenging due to energy density limits for long-haul flights and shipping. The conversation explores the potential of Sustainable Aviation Fuel (SAF) and Hydroprocessed Esters and Fatty Acids (HEFA) as viable alternatives. McPherson also discusses EU policies promoting these green fuels and gives insights on investment strategies in the evolving landscape of decarbonization.
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INSIGHT

Mass And Energy Density Limit Electrification

  • Aircraft and ships face large physical limits that make battery electrification far harder than for cars.
  • Fuel mass is a much larger fraction of aircraft and ship total mass, so batteries become impractical for long ranges.
ANECDOTE

Existing Electric Drivetrains On Big Ships

  • Gerard points out many large ships already use electric drivetrains, and aircraft increasingly adopt electric components.
  • The challenge is producing the electricity cheaply and cleanly for long-distance operations.
INSIGHT

HEFA Is Drop-In But Supply-Limited

  • HEFA (waste oils/fats) can be processed into drop-in jet-like fuels but supply is tiny versus global demand.
  • Cost is much higher than fossil jet: roughly $2,000/tonne today versus ~$650/tonne for jet fuel.
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