HomeTravel NewsSAF Production to Grow, but Costs to Remain High

SAF Production to Grow, but Costs to Remain High

Sustainable Aviation Fuel (SAF) is expected to treble next year, but usage is also set to get ever more expensive, which will likely result in air fares increasing.

SAF is seen as a key ingredient in airlines’ attempts to reach net zero over the next 30 years.

In 2024 SAF production is expected to triple to 1.875 billion litres, accounting for 0.53% of aviation’s fuel need, and 6% of renewable fuel capacity. The small percentage of SAF output as a proportion of overall renewable fuel is primarily due to the new capacity coming online in 2023 being allocated to other renewable fuels.

IATA Director General, Willie Walsh, said: “The doubling of SAF production in 2023 was encouraging as is the expected tripling of production expected in 2024. But even with that impressive growth, SAF as a portion of all renewable fuel production will only grow from 3% this year to 6% in 2024.

However, Mr Walsh added: “This allocation limits SAF supply and keeps prices high. Aviation needs between 25% and 30% of renewable fuel production capacity for SAF. At those levels aviation will be on the trajectory needed to reach net zero carbon emissions by 2050. Until such levels are reached, we will continue missing huge opportunities to advance aviation’s decarbonisation. It is government policy that will make the difference. Governments must prioritize policies to incentivise the scaling-up of SAF production and to diversify feedstocks with those available locally.”

Geoff Percival
Geoff Percival
Geoff has worked in business, news, consumer and travel journalism for more than 25 years; having worked for and contributed to the likes of The Irish Examiner, Business & Finance, Business Plus, The Sunday Times, The Irish News, Senior Times, and The Sunday Tribune.

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