The aviation sector faces a critical challenge in decarbonizing its operations and achieving ambitious environmental targets, including the goal of net-zero emissions by 2050. A central obstacle to this transition is the limited availability and higher cost of Sustainable Aviation Fuel (SAF), a vital component for significantly reducing the industry’s carbon footprint.
Stimulating SAF Production Through Demand
To accelerate the adoption of SAF and overcome current supply constraints, a senior executive from Bayer suggests a strategic shift in airline procurement. Matthias Berninger, Executive Vice President and Head of Sustainability at Bayer, emphasized the necessity for airlines to forge long-term purchasing agreements for substantial volumes of SAF. This approach mirrors successful models observed in the renewable energy sector, where committed demand signals have driven increased production.
Berninger articulated that such definitive commitments would provide the necessary incentive across the supply chain. Given that Bayer’s Monsanto unit supplies agricultural inputs relevant to biomass-based feedstocks for biofuels, the company understands the mechanism: assured demand would encourage farmers to cultivate appropriate crops and processors to refine these materials into SAF. Currently, despite the International Air Transport Association (IATA) projecting a doubling of SAF production to 2 million tonnes by 2025, this still represents a mere 0.7% of total aviation fuel consumption, highlighting the significant gap that needs to be addressed.
Sources of Sustainable Aviation Fuel
Sustainable Aviation Fuel can be derived from a variety of renewable sources, including agricultural plants, used cooking oil, and various waste products. Expanding the production and uptake of SAF is crucial for the industry to meet its climate obligations effectively. (Reporting by Allison Lampert in Montreal; Editing by David Gregorio) (Reuters)
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