What is the current situation with SAF?
The opportunites and challenges in todays economic climate
The adoption of SAF in the aviation industry has been increasing in recent years. In 2016, only 500 flights used SAF. By 2022, 450,000 flights have already used SAF, and it is projected that by 2025, there will be 2 million flights using SAF.
In 2016, 8 million litres of SAF were produced, and by 2022, 125+ million litres will be produced and used. By 2025, it is projected that 5 billion litres of SAF will be used per year.
Despite the progress that has been made, the availability of SAF is currently limited, and it is only available at limited airports globally. Private jet operators are facing the challenge of being unable to utilise SAF at every location.
SAF is available in some airports, including Amsterdam and Zurich, with Jet Aviation. Commercial aircraft are permitted to operate passenger flights on a 50/50 blend of SAF and standard jet fuel.
To address this issue, the aviation industry is moving toward an off-site "book and claim" accounting system like that used in the renewable electricity sector. This system allows for greater flexibility given the relative scarcity of SAF, which uses feedstocks like cooking oils to reduce emissions.
The "book and claim" approach enables broader access to Sustainable Aviation Fuel (SAF) without physical transportation. The volume is verified and tracked upon booking or placing an order for SAF. A certificate of credit is issued to account for the carbon reduction and the associated environmental benefits. This system ensures that no unnecessary transportation costs are incurred and that environmental benefits are accounted for.