Sustainable Aviation Fuel (SAF) Procurement Challenges

Abstract

Sustainable Aviation Fuel (SAF) has risen as a key saving grace for the airline industry to mitigate emissions and help achieve its sustainability goals. However, although SAF has several environmental values, the procurement of SAF on a large-scale encounter various challenge. Such challenges are high production costs, scarce feeder stock, technical matters, supply chain issues, and regulatory aspects. SAF production calls for a large amount of investment funds to be spent on infrastructure, technologies of research and development, and the cutting-edge refining technologies, which at the moment preclude the application of the product on a large scale and render the product prohibitively expensive if compared to the conventional jet fuel. Moreover, the fragmented environment of the regulatory landscape in different regions increases uncertainties in long-term procurement agreements and obstructs the regulatory Climate for SAF at the global level. Nevertheless, there are possible ways to meet these challenges. More synergies among governments, airlines, fuel manufacturers, and technology providers, coupled with rewards and policy advocates, can bring about this change. Also core to meeting these procurement challenges are improved production technologies, scaling up of SAF production facilities, and standardization of certification processes. With these challenges, the future of SAF procurement is looking bright, with possibilities of lower cost and greater availability as technology advances and regulations consider sustainable aviation practices more favorable. This paper identifies the key issues in SAF procurement, offers solutions to these barriers, and makes room for a sustainable and economically viable future for aviation fuel.