- IATA highlights slow SAF growth due to continued government subsidies for fossil fuels and hesitant investors.
- SAF production reached 1 million tonnes in 2024 but only accounts for 0.3% of global jet fuel output, falling short of projections.
- IATA calls for increased co-processing, investment in diverse SAF pathways, and stronger government policies to accelerate progress.
The International Air Transport Association (IATA) has outlined why sustainable aviation fuel (SAF) growth remains slow despite its benefits. IATA Director General Willie Walsh explained that SAF production increases at a frustratingly slow pace due to government policies that still favour fossil fuels.
“Governments continue to subsidise oil companies while offering little support for SAF,” Walsh stated during IATA’s Media Day in Geneva. He noted that investors hesitate to commit, seeking quick profits rather than long-term returns for SAF growth.
Airlines operating on slim 3.6% profit margins seek long-term SAF investments. Walsh emphasised that airlines eagerly want to buy SAF, but governments must cut fossil fuel subsidies and offer better support for renewable energy production.
SAF Production Falls Below Expectations
In 2024, SAF production hit 1 million tonnes (1.3 billion litres), doubling the 2023 output of 0.5 million tonnes (600 million litres). However, SAF still makes up only 0.3% of global jet fuel and 11% of renewable fuel. This falls short of earlier projections, which predicted 1.5 million tonnes of SAF for 2024. Delays in key U.S. facilities have pushed higher production to 2025 when SAF output should reach 2.1 million tonnes (2.7 billion litres), or 0.7% of total jet fuel production.
Marie Owens Thomsen, IATA’s Senior Vice President for Sustainability, stressed the broader role of SAF within the global energy transition. Renewable fuel refineries won’t just benefit aviation but will support multiple industries. SAF production must rise in line with other renewable energy sources.
IATA’s Path to Net Zero by 2050
IATA’s analysis shows that the world needs 3,000 to 6,500 new renewable fuel plants to achieve net-zero carbon emissions by 2050. These plants will produce SAF, renewable diesel, and other fuels. Building these facilities will require an annual capital expenditure of $128 billion over 30 years, far below the $280 billion per year invested in solar and wind energy between 2004 and 2022.
Walsh called for quick government action, urging the introduction of strong policies to speed up SAF production. “Governments must act now to push renewable energy production faster. SAF will require less investment than solar and wind on a global scale,” he said.
Key Steps to Boost SAF Production
IATA outlined three significant strategies to drive SAF growth:
- Increase co-processing: Existing refineries can co-process up to 5% of renewable feedstocks with crude oil. Expanding this practice could save $347 billion in capital costs by 2050, reducing the need for new fuel plants.
- Develop more SAF pathways: The HEFA method, using cooking oil and animal fats, now dominates SAF production at 80%. Increasing investments in methods like Alcohol-to-Jet (AtJ) and Fischer-Tropsch (FT), which use agricultural waste, can diversify and scale up SAF production.
- Leverage public support: A recent IATA survey revealed that 86% of travellers back government incentives for SAF and believe oil companies should prioritise SAF supply to airlines.
With strong public backing and more transparent government policies, SAF can help aviation reach a sustainable future.