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 sustainable aviation fuel (SAF) market, currently constrained by high costs and low supply, could be significantly bolstered by large-scale purchasing decisions from the Department of Defense (DOD).
- Despite the DOD's historical support for SAF development and its aircraft's compatibility with the fuel, current regulations prevent major procurements due to SAF's higher cost compared to conventional jet fuel.
- Industry experts anticipate that increased government investment and a strong demand signal from operators will help SAF achieve widespread availability and cost-competitiveness within the next 5 to 10 years.
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