The International Air Transport Association (IATA) has released new estimates of sustainable aviation fuel (SAF) production, which show that SAF production will reach 1 million tonnes (1.3 billion litres) in 2024, double the 500,000 tonnes (600 million litres) in 2023:
– SAF production will reach 1.0 million tonnes (1.3 billion litres) in 2024, double the 0.5 million tonnes (0.6 billion litres) in 2023.SAF accounts for 0.3 per cent of global aviation fuel production and 11 per cent of global renewable fuels.
SAF accounts for 0.3% of global aviation fuel production and 11% of global renewable fuel production.-This is significantly lower than the 1.5 million tonnes (1.9 billion litres) of SAF production in 2024 that was previously forecast, as the major SAF production facilities in the United States have delayed their ramp-ups until the first half of 2025.
-SAF production is expected to reach 2.1 million tonnes (2.7 billion litres) by 2025, representing 0.7% of total aviation fuel production and 13% of global renewable fuel capacity.
‘SAF volumes are increasing, but at a disappointing rate. Governments are sending mixed signals to oil companies, which continue to receive subsidies for exploration and production of fossil oil and gas. Investors in the new generation of fuel producers seem to be waiting for assurances of easy money before going all in. With airlines, the core of the value chain, posting net profits of just 3.6 per cent, SAF investors’ earnings expectations need to be slow and steady, not fast and furious. But there is no doubt that airlines are eager to buy SAFs and that investors and companies that see a long-term future in decarbonisation can make money. Governments can accelerate progress by reducing subsidies for fossil fuel production and replacing them with strategic production incentives and clear policies that support a future built on renewable energy, including SAFs,’ said Willie Walsh, Director General of the International Air Transport Association.