IATA outlines policies to achieve SAF uptake

In Switzerland, the International Air Transport Association (IATA) announced that its projections for a tripling of Sustainable Aviation Fuels (SAF) production in 2024 to 1.9 billion liters (1.5 million tons) are on track. This would account for 0.53% of aviation’s fuel need in 2024. To accelerate SAF use, there are several policy measures that governments could take. 

There are several potential solutions to accelerate aviation’s access to critical SAF quantities:

·      Diversify feedstocks: About 80% of SAF expected to be produced over the next five years is likely to come from hydrogenated fatty acids (HEFA): used cooking oils, animal fats, etc. Accelerating the use of other certified pathways and feedstocks (including agricultural and forestry residues and municipal waste) will greatly expand the potential for SAF production.

·      Co-processing: Existing refineries can be used to co-process up to 5% of approved renewable feedstocks alongside the crude oil streams. This solution can be implemented quickly and materially expand SAF production. However, policies must be put in place urgently to facilitate consistent life-cycle assessments. 

·      Incentives to improve the output mix at renewable fuel facilities: The current renewable fuel facilities are designed to maximize diesel production and often benefit from incentives in addition to the long-standing demand from road transportation. As road transport transitions to electrification, policies should be established to shift production toward the long-term need of air transport for SAF. Incentives aimed at SAF can help facilitate the renewable diesel-SAF switch, which requires minimal modifications at existing stand-alone renewable fuel facilities.

·      Incentives to boost investments in renewable fuel production: The production of all renewable fuels will need to scale up rapidly, and among them, the need for a growing share of SAF production will necessitate strong policy support. One such clearly articulated policy is the US Grand Challenge and the $3 billion of investments it supports. Stable, long-term tax credits would further maximize SAF production capability in both existing and new facilities.