The imperative of global collaboration across supply chain

As the aviation industry stands at the forefront of a radical transformation towards decarbonization, renewable fuel, and in particular sustainable aviation fuel (SAF), has emerged as the most viable alternative to reduce the industry’s impact on the environment.

Global air passenger traffic is expected to double by 2040, exacerbating the climate crisis through rising carbon dioxide emissions. Currently, aviation emissions within the European Union contribute to 14.4% of transport-related emissions in the region. The urgency to decarbonise necessitates a comprehensive multipronged approach, including improvements in aircraft and engine technologies that will reduce fuel consumption. But a major component of this transformation also relies on the deployment of renewable fuel such as SAF, which has the potential to reduce net CO2 emissions by up to 80% and can be used without changes to aircraft, engine, or airport infrastructure.

Regulators worldwide understand the role of SAF in decarbonizing the aviation industry, particularly in Europe, where mandate calls for fuel uplift at EU airports to contain at least 2% SAF beginning in 2025, with a gradual increase over the years up to 70% by 2050. Other parts of the world are catching up such as the Middle East, Singapore, Japan, New Zealand and Australia. The UK is planning a SAF mandate of 10% by 2030 and then 22% by 2040, while the US has adopted incentives to support SAF production and use.

However, overall EU production capacity is currently estimated at about 10% of what is needed to fulfil the 2030 SAF mandate of 6% blending under the Refuel EU Aviation Regulation. Additionally, the recent extension of feedstock allowable for SAF production under Annex IX of the RED-III Directive will barely change the foreseen supply and demand imbalance. We must face the inevitable: production capacity and global trade in SAF must increase to fulfil these mandates.

Innovation and New Solutions

Global renewable fuel producers such as EcoCeres are focused on increasing SAF production to reach such targets by leveraging innovative technologies and optimizing supply chain management. In 2023, global SAF production increased to 600 million liters from 300 liters the previous year, with EcoCeres, the second largest producer of SAF globally, holding a 20%

market share.

Global SAF production is projected to triple in 2024, an impressive growth. But we must also keep in mind that SAF production represented only 0.2% of global jet fuel use in 2023, according to the International Air Transport Association. According to Willie Walsh, director general for IATA, SAF will provide about 65% of the mitigation needed for airlines to achieve net zero carbon emissions by 2050.

The vast majority of SAF production relies on hydro processed esters and fatty acids (HEFA) technology, which mainly utilizes used cooking oil and industrial grease as feedstock. EcoCeres is working with other types of waste, such as agricultural waste, to increase production and reduce pollution, further preserving the environment. And as a global company with a deeply rooted innovative approach, EcoCeres is constantly working on improving the efficiency rates of SAF solutions.

The Importance of Regulatory Support

But to reach the mandated targets, it’s critical that governments worldwide facilitate the production and utilization of renewable fuels and SAF in particular. Last month, the European Council approved the EU’s Net Zero Industry Act (NZIA) as a key pillar of the European Green Deal. We welcome this act and commend the inclusion of SAF on the single list “net zero

technologies”.

Governments globally can incentivize the scaling-up of SAF production to bridge the price gap and promote the diversification of feedstocks. We also believe that a strong carbon price in the EU emission trading scheme, which requires airlines to purchase allowance for their CO2 emissions, could also send the signal necessary to further provide a level playing field with conventional kerosene.

A Collaborative Approach

All high-quality volumes of advanced SAF are needed to meet the ambitious mandates and improve the cost level-playing field with fossil jet fuel. We encourage all steps that scale the capacity of the sector to provide global solutions that help realize our shared ambition of sustainable aviation.

Collaboration is key to bringing production to the desired levels and to decarbonizing the aviation industry. The aviation industry cannot solve this problem alone, nor can SAF producers.

Progress requires a concerted effort from all stakeholders globally. We have begun our journey on that road, with airlines, traders, renewable fuel producers and feedstock providers starting to forge partnerships, but we must reinforce our efforts in that direction. Sustainable aviation cannot be achieved in isolation.