IATA: We're Behind on Sustainable Aviation Fuel Production
Industry research from the International Air Transport Association (IATA) has reiterated the urgent need to scale up the production of sustainable aviation fuel (SAF) to support the aviation sector’s decarbonisation goals.
While SAF has the potential to account for 65% of the industry’s net zero carbon strategy by 2050, the IATA suggests that current production levels fall woefully short of demand, revealing the significant challenges ahead.
The state of SAF production worldwide
According to the IATA, global SAF production reached one million tonnes in 2024, which is double that produced in 2023. However, this still falls short of the projected 1.5 million tonnes.
More worryingly, this production level equates to a mere 0.53% of the aviation industry’s fuel requirements.
“SAF volumes are increasing, but disappointingly slowly,” says Willie Walsh, Director General of the IATA.
“Governments are sending mixed signals to oil companies which continue to receive subsidies for their exploration and production of fossil oil and gas. And investors in new generation fuel producers seem to be waiting for guarantees of easy money before going full throttle.”
Feedstock limitations, high production costs, insufficient infrastructure and policy barriers are the primary obstacles to ramping up SAF supply.
The industry’s reliance on limited sources, such as used cooking oils and biomass, only compounds the issue.
Conor Madigan, CEO of Aether Fuels, says: “A critical part of the solution is unlocking new forms of feedstock – waste carbon that can be economically turned into fuel and, importantly, is widely available enough to meet the huge demand of these industries.”
The role of regulation and collaboration
The IATA study and industry executives agree on the critical role of policy in accelerating SAF adoption.
Willie urges governments to phase out fossil fuel subsidies and instead channel those funds into renewable energy initiatives, drawing parallels with the success of wind and solar energy transitions.
Lauren Riley, Chief Sustainability Officer at United Airlines, is a huge proponent of collaborative partnerships. “While our current 3% contribution to global emissions might seem modest, we anticipate this percentage growing as other industries successfully decarbonise," she explains.
"We’re essentially a hard-to-abate sector with limited options for reducing our environmental impact.”
For Lauren, the role of regulation has already been significant in the pursuit of sustainable aviation.
The US Inflation Reduction Act has helped to provide financial incentives for sustainable aviation efforts within the past few years, and Lauren believes positive governance like this plays a huge role in industry progress.
JetBlue has similarly championed collaboration. The airline’s Managing Director of Sustainability, Sara Bogdan, says: “While we’re taking the steps we can on our own to reduce emissions, we also recognise the airline industry can’t reach their goals alone and must continue to encourage the growth of the SAF market.
"Despite that growth and our eight separate partnerships established for current and future SAF supply, there continues to be a need for more affordable SAF.”
The aviation industry's effort to scale up SAF
Airlines and energy companies are already making strides to address SAF challenges. Emirates, for instance, has partnered with Shell Aviation to supply SAF for its flights from Heathrow Airport as part of the airport’s SAF Incentive Programme.
Adel Al Redha, Emirates’ Chief Operations Officer, is one of the executives behind this initiative.
“London Heathrow’s SAF initiative also demonstrates credible action to encourage the scale up and use of SAF by airlines, building local production capabilities grounded in real demand, in addition to developing capacities across the supply chain to blend, handle and distribute SAF more widely,” he says.
JetBlue has invested in SAF technology companies, such as Aether Fuels, to scale up innovation.
“We’ve backed several innovative companies in the sustainable aviation fuel (SAF) space that have made significant advancements, each playing a crucial role in various parts of the SAF production pathway," says Amy Burr, President of JetBlue Ventures.
Aether Fuels is one of these, and we see their mission to unlock a broader range of SAF feedstock as a vital step on the road to net zero flying."
These efforts include exploring advanced technologies like power-to-liquid systems, which convert CO₂ into jet fuel using renewable energy, presenting a promising pathway for long-term sustainability.
Will sustainable aviation fuel ever be a credible option?
While the aviation industry faces a monumental challenge in meeting its decarbonisation targets, the potential of SAF remains a cornerstone of its strategy.
However, scaling SAF production to meet global demand will require unprecedented levels of innovation, investment, and international cooperation.
“Governments can accelerate progress by winding down fossil fuel production subsidies and replacing them with strategic production incentives and clear policies supporting a future built on renewable energies, including SAF,” says Willie.
With continued efforts from governments, fuel producers, and airlines, SAF can become a viable and competitive alternative to fossil fuels. This collective endeavour is not just about the future of aviation but about achieving broader sustainability goals for a greener global economy.
Tom Byrne, Head of Net Zero and Environment at British Airways, will be discussing this topic further at our Net Zero event on 5/6 March, get your tickets now by clicking this link.
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