Why Is Sustainable Aviation Fuel Production Ramping Up So Quickly?

The commercial aviation sector is accelerating its shift toward cleaner energy. Sustainable Aviation Fuel (SAF) production is quickly ramping up globally. This effort aims to significantly reduce aviation's carbon footprint and meet net-zero targets. Industry data shows a strong upward trend in fuel output. This growth is driven by new regulations and major corporate investments.

The Current State of Global SAF Supply

Global SAF production volumes are increasing rapidly. The International Air Transport Association (IATA) reported significant growth. Production reached 1 million tonnes (Mt) in 2024. This volume doubled the output from the previous year. However, this still represented only 0.3% of global jet fuel use. For 2025, IATA expects production to nearly double again. The forecast is for 1.9 Mt of SAF output. This would account for about 0.6% of total jet fuel consumption.

Growth is projected to continue into 2026. Output is expected to reach 2.4 Mt that year. This rapid expansion signals strong investment in Sustainable Fuel projects. Airlines and manufacturers see SAF as vital for their future. Major manufacturers like Boeing support this transition. They view alternative jet fuel as the key decarbonization lever.

Regulatory and Policy Drivers

Government mandates are a primary force behind the Sustainable Aviation Fuel production ramp-up. The International Civil Aviation Organization (ICAO) adopted a Long Term Aspirational Goal (LTAG). This goal is to achieve net-zero CO2 emissions by 2050. ICAO also agreed on a global framework at CAAF/3. This framework targets international aviation being 5% less carbon intensive by 2030.

Europe is leading with binding legislation. The ReFuelEU Aviation mandate took effect in 2025. It requires fuel suppliers to blend SAF into kerosene. The minimum blend starts at 2% in 2025. It is set to increase to 70% by 2050. The European Union Aviation Safety Agency (EASA) oversees compliance. The United States also offers strong incentives. Federal tax credits and the Renewable Fuel Standard (RFS) drive US capacity growth. U.S. SAF production capacity increased by 25,000 barrels per day in late 2024.

Industry Investment and Technology

Energy companies are responding to the demand. New facilities are coming online globally. In the U.S., companies like Diamond Green Diesel added capacity. New Rise Renewables also began production in early 2025. In Asia, Thailand mandated a 1% SAF blend starting January 1, 2026. This policy supports local projects like Bangchak Corporation's new plant.

Most current SAF uses the HEFA pathway. HEFA stands for Hydroprocessed Esters and Fatty Acids. This method uses feedstocks like used cooking oil. However, the industry is diversifying. Companies are investing in Alcohol-to-Jet (AtJ) and Fischer-Tropsch (FT) technologies. These methods use agricultural waste and residues. LanzaJet, for example, produced its first ethanol-based SAF. This demonstrates fuel technology advancements are progressing.

Challenges for Commercial Aviation Decarbonization

Despite the growth, significant hurdles remain. The cost of SAF is a major barrier. It remains two to five times higher than fossil jet fuel. IATA has criticized the current regulatory approach in Europe. IATA Director General Willie Walsh stated mandates have stalled momentum. He argued they have increased costs for airlines. The association instead favors production incentives. They believe incentives will help scale production faster.

• High Price Premium: SAF adds billions in annual fuel costs for airlines.
• Feedstock Competition: Other industries compete for sustainable raw materials.
• Policy Fragmentation: Inconsistent global policies slow down investment decisions.

SAF is expected to provide 65% of the emissions reduction needed by 2050. This makes commercial aviation decarbonization heavily reliant on its success. The industry must overcome these cost and supply challenges. For the latest on this and other commercial aviation news, visit flying.flights.