Can Aviation Overcome SAF Scaling and Cost Challenges?

As sustainable aviation fuel (SAF) garners attention as a transformative solution for reducing emissions in air travel, its widespread adoption faces challenges.

Addressing procurement, supply chain resilience and regulatory gaps is crucial to making SAF a viable alternative to conventional jet fuel.

SAF, derived from renewable feedstocks such as waste oils, agricultural residues and carbon capture, offers up to an 80% reduction in lifecycle emissions compared to fossil-based jet fuel.

However, issues in sourcing, logistics and production scalability hinder progress, leaving the aviation industry grappling with the complexities of transitioning to sustainable energy.

Rising demand and persistent barriers

The aviation sector’s net-zero aspirations hinge on SAF, yet its production remains limited, meeting only a fraction of annual fuel demand.

Feedstock availability is a significant bottleneck. SAF relies on materials that are often costly or scarce, such as agricultural residues and waste oils.

Securing these raw materials necessitates careful sourcing strategies and collaboration with industries like agriculture, waste management and chemical processing.

Robust logistics networks are also essential to ensure steady supply.

Currently, SAF production facilities are concentrated in specific regions, requiring efficient transport systems to move fuel to global aviation hubs. Without decentralised production or optimised distribution, supply chain inefficiencies will continue to stall scalability.

Marie Owens Thomsen, Senior Vice President of Sustainability at the International Air Transport Association (IATA), highlights the urgency: “We need the whole world to produce as much renewable energy as possible for everybody. Airlines simply want to access their fair share of that output.”

Policy, collaboration and supply chain innovation

Government incentives and consistent regulations are pivotal for SAF adoption. In regions like Europe and North America, mandates for blending SAF with traditional jet fuels are driving demand.

However, global alignment is necessary to prevent fragmented progress. IATA’s goal of achieving two-thirds of airline fuel from SAF by 2050 requires policy consistency and substantial investment across nations.

Partnerships between airlines, SAF producers and technology firms are emerging as a strategy to tackle shared challenges.

Airlines committing to bulk SAF purchases incentivise producers to scale up, but these collaborations often encounter hurdles. Funding infrastructure for feedstock sourcing, refining and innovation remains a critical gap.

The supply chain’s role cannot be overstated. Ensuring a diverse and sustainable feedstock base is vital to avoid resource competition with other industries or environmental harm.

Integrating advanced technologies like blockchain for transparency in sourcing and logistics optimisation could streamline production and delivery processes.

Willie Walsh, IATA’s Director General, emphasises the need for government support: “Governments must quickly deliver concrete policy incentives to rapidly accelerate renewable energy production.

"A good portion of the needed funding could be realised by redirecting a portion of the retrograde subsidies that governments give to the fossil fuel industry.”

Bridging the cost and distribution gap

One of SAF’s most significant barriers is its cost, which remains higher than traditional jet fuel.

Scaling production to achieve economies of scale will help reduce prices, but this requires long-term investment in refining and manufacturing facilities.

In the interim, targeted government incentives and support from financial institutions can help bridge the affordability gap, ensuring SAF remains a practical option for airlines.

Decentralising SAF production closer to airports could also alleviate transportation challenges. Establishing regional facilities would minimise logistics complexity and reduce emissions associated with long-distance fuel transport.

Improving supply chain resilience involves diversifying feedstock sources, enhancing logistics and adopting innovations that lower costs and increase efficiency.

By fostering supplier diversity and integrating emerging technologies, the aviation sector can build a more robust framework for SAF production and distribution.

A unified effort for sustainable progress

The potential of SAF to decarbonise aviation is undeniable, but achieving this requires a unified approach.

Industry players must align on policy, investment and innovation to overcome the barriers slowing SAF adoption.

Collaboration among governments, airlines, producers and suppliers is critical to creating an ecosystem that balances sustainability with affordability and scalability.

By addressing procurement challenges, enhancing supply chain efficiency and fostering collaboration, the aviation industry can pave the way for a sustainable future, ensuring SAF’s transformative potential is realised.

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