Could SAF Be a Cost-Effective Solution to Rising Aviation Fuel Prices?

With the price of conventional aviation fuel skyrocketing in the wake of Russia’s invasion of Ukraine, could sustainable aviation fuel, aka SAF, offer any relief? FLYING takes a look.

Thom Patterson

Thursday, May 05, 2022 at 10:24 AM ET

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Virgin Atlantic struck a deal last February with fuel provider Neste to supply 2.5 million litres of SAF to Virgin’s fleet. [Photo: Thom Patterson]

Key Takeaways:

Sustainable Aviation Fuel (SAF) is crucial for aviation's decarbonization goals but is currently 2-4 times more expensive than conventional jet fuel, precluding it as a short-term solution for high fuel prices.
The high cost of SAF is attributed to its minuscule global production (0.1% of aviation fuel), limited supply infrastructure, lower demand compared to traditional fuels, and complex production costs.
While not an immediate relief, SAF's long-term price competitiveness could improve with increased demand, scaled-up production, and supportive government policies such as tax credits or carbon taxes on conventional fuels.

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With the price of conventional aviation fuel skyrocketing in the wake of Russia’s invasion of Ukraine, could sustainable aviation fuel (SAF) offer any relief?

For a while now, governments, major airlines, and several aviation organizations have been encouraging the industry to embrace SAF to help achieve net-zero carbon emissions by 2050. This is because SAF burns more cleanly and is made from renewable resources, such as used cooking oil and grain.