Strategy& – Sustainable Aviation Fuel

The aviation industry is in need of sustainable aviation fuels (SAFs) in order to decarbonize and meet regulatory targets. However, the current supply of SAFs is insufficient and a significant investment of up to €1,000 billion will be needed to establish SAF refineries and meet the potential demand of 325 million tons of SAF by 2050. Despite the financial risks and uncertainties in the industry, it is crucial for all stakeholders to collaborate and take action to remove roadblocks and unlock the potential of SAFs. This will involve addressing regulatory uncertainties, hedging financial risks, diversifying feedstock to reduce dependence, and increasing awareness and investment from corporate customers. Time is of the essence and investment in demonstration facilities and plant development projects is necessary to prove the scalability of SAF technology. By taking these actions, the aviation industry can achieve its decarbonization goals and reap the environmental benefits of SAFs.