As the industry continues to make pledges and forward-looking statements, flight milestones, new investments and SAF production growth are the only indicators of real progress.
Long-term offtake agreements are becoming common in the space, as a way for carriers to signal intent and fuel producers to finance new builds/expansion.
This is also a worrisome trend given growth projections of the industry, which is expected to double by 2050 to 8 billion passengers each year.
Despite the many improvements to the fuel efficiency of aircraft in recent decades, the fact remains that to move goods and people quickly over long distances requires a significant amount of fuel and, therefore, emissions.
A: Using SAF results in a reduction in carbon emissions compared to the traditional jet fuel it replaces over the life cycle of the fuel.
Many national and subnational policies, such as California’s LCFS and the federal Renewable Fuel Standard, incentivize the production and/or consumption of alternative fuels through tax breaks or environmental attribute programs. For example, a gallon of SAF in California is able to sell near parity with fossil-based jet fuel because it receives over $3 per gallon in credits from LCFS, RFS, and a blender’s tax credit.