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, making it an unviable short-term solution for current high oil prices.
The high cost of SAF is primarily due to low demand, extremely limited global production (0.1% of aviation fuel), and a complex production supply chain.
Achieving long-term price competitiveness for SAF depends heavily on a significant increase in demand, scaling up production, and supportive government policies such as tax credits and carbon pricing.

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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.