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 accelerator for the sustainable aviation fuel (SAF) market, with large-scale military purchases expected to spur investment and increase supply.
- While DOD aircraft are compatible with SAF and the department has historically supported its development, current mandates prohibit bulk purchases unless SAF is cost-competitive with conventional jet fuel.
- Overcoming SAF's high cost through policy changes, such as increased government funding and authorization for non-cost-competitive purchases, is necessary to unlock DOD's purchasing power and help the market mature towards widespread availability within 5-10 years.
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