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 currently 2-4 times more expensive than conventional jet fuel, providing no immediate relief for rising aviation fuel costs despite its environmental benefits.
The high price of SAF is primarily due to low demand, limited global supply (currently 0.1% of all aviation fuel), and complex production processes.
While not a short-term solution, SAF's price is projected to become more competitive long-term through increased demand, scaled-up production, and government incentives or carbon taxes on conventional fuel.

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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.