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 significantly more expensive (2-4x) than conventional jet fuel, primarily due to low production volumes, limited demand, and complex supply chains.
Despite its higher cost, SAF is considered essential for the aviation industry to achieve its goal of net-zero carbon emissions by 2050 due to its cleaner burning and renewable nature.
The long-term potential for SAF to become price-competitive relies on substantial increases in production and demand, coupled with government incentives like tax credits and the impact of 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.