The future of the sustainable aviation fuel (SAF) market—currently hamstrung by low supply and high cost—could be significantly accelerated by fuel purchasing decisions made by the Department of Defense (DOD) for military aircraft, according to aviation insiders.
Could Future DOD Purchases Accelerate the SAF Market?
Key Takeaways:
- The Department of Defense (DOD) is seen as a crucial catalyst for accelerating the Sustainable Aviation Fuel (SAF) market, which currently faces challenges with low supply and high cost.
- Despite the DOD's historical support for SAF development and certification of its compatibility for military aircraft, current legal mandates prevent large-scale purchases due to SAF's higher cost compared to conventional fuel.
- Aviation insiders believe that significant DOD purchasing mandates would spur essential investment and production, with the SAF market projected to achieve wider availability and cost-competitiveness within 5 to 10 years.
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