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 an immediate solution for high aviation fuel prices due to low demand, limited supply (only 0.1% of global aviation fuel), and complex production costs.
Despite its higher cost, SAF is critical for the aviation industry to achieve its goal of net-zero carbon emissions by 2050, as it burns cleaner and is made from renewable resources.
Long-term, SAF prices are projected to become more competitive as demand and supply increase. Government incentives like tax credits and carbon taxes on conventional fuel are essential to accelerate production and make SAF economically viable.

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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.