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 to 4 times more expensive than conventional jet fuel, making it not a near-term cost-effective alternative despite recent spikes in traditional fuel prices.
The high cost of SAF is attributed to low demand, extremely limited global production (only 0.1% of aviation fuel), and higher production costs due to its nascent industry and complex supply chain.
While SAF demand is slowly increasing, its price competitiveness in the long term depends on significant production scale-up, economies of scale, and government incentives like tax credits or carbon credits, potentially alongside carbon taxes on conventional fuels.
The aviation industry aims for net-zero emissions by 2050, which would require SAF to constitute 65% of its total fuel, highlighting the critical need for policy support and infrastructure development to make SAF viable and affordable.

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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.