Sustainable Aviation Fuel Industry Updates

Impact of Net Zero on Air Travel
India has potential for producing sustainable aviation fuel

THE International Air Transport Association (IATA) emphasises India's potential for producing Sustainable Aviation Fuel (SAF) to help mitigate carbon emissions, reports New Delhi's Economic Times.

The organisation, with support from stakeholders such as Hemant Mistry, plans to launch the SAF Registry in 2025.

Amid rising air travel, IATA highlighted on Sunday that India has substantial capacity to produce SAF, which can significantly reduce carbon emissions.

In 2023, SAF production in India was around 0.5 million tonnes, but this needs to increase significantly by 2050.

The SAF Registry, set to be established by IATA, aims to boost the adoption of SAF by accurately tracking and reporting emissions reductions from its use.

Source: Asian Shipper News - Air and Sea 2024/06/11

Little to no ethanol will qualify for US aviation fuel credit

LITTLE to no ethanol will qualify for US sustainable aviation fuel (SAF) subsidies under a new pilot programme by President Joe Biden's administration, which recently tightened climate requirements, reports Reuters.

This development could negatively impact the biofuel industry, which views SAF as ethanol's most promising growth opportunity, especially as electric cars reduce its demand as a gasoline additive.

It could also impede Biden's goal of producing 30 billion gallons of SAF by 2030, despite his earlier promise that 95 per cent of SAF - a biofuel that can be made from oils, waste, or grains-would come from farmers.

The specifics of how little ethanol will qualify for the subsidies under the pilot programme and the last-minute increase in requirements have not been previously reported.

Central to the issue is a US$1.25/gallon production tax credit included in the 2022 Inflation Reduction Act, designated for SAF that achieves a 50 per cent reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel.

Source: Asian Shipper News - Air and Sea 2024/06/11

Why aviation chiefs fear net zero could cripple air travel

WHEN airlines committed to reducing carbon emissions in 2021, executives were confident that, having survived Covid crisis, they could also navigate the energy transition, reports London's Daily Telegraph.

However, three years later, concerns are mounting among industry leaders.

Progress towards the goal of achieving net zero emissions by 2050 has been sluggish, with the production of sustainable aviation fuel (SAF) falling significantly short of the required levels.

Last year, Virgin Atlantic conducted the world's first 100 per cent SAF-powered flight across the Atlantic to showcase the fuel's potential.

Despite this Virgin vice president Holly Boyd-Boland stated that as things stand, there is not going to be enough SAF to meet their goal of Net Zero 2050.

The scarcity of SAF and potential solutions will be key topics at IATA's annual meeting in Dubai.

The event will gather hundreds of airline executives, as well as representatives from Airbus, Boeing, and other manufacturers.

Currently, SAF - a refined blend of waste oils, animal fats, and corn-derived ethanol-accounts for just 0.2 per cent of jet fuel use. UK carriers are mandated to increase this to ten per cent by the end of the decade to meet government requirements.

Source: Asian Shipper News - Air and Sea 2024/06/11

Indonesia's Pertamina issues first purchase tender for eco jet fuel

INDONESIA's state-owned energy firm's Pertamina Patra Niaga has issued its first spot purchase tender for sustainable aviation fuel delivering in August, three sources who received the document told Reuters.

The oil major is looking to buy either 150 kilolitres (943 barrels) of neat sustainable aviation fuel via isotanks or 3,500 kilolitres of blep per cent of neat sustainable aviation fuel for delivery in first week of August, they said.

The intended delivery location for both cargoes is Bali, Indonesia. The tender closed on June 12 with validity up to June 17.

A Pertamina Patra Niaga did not immediately reply to a request for comment.

Source: Asian Shipper News - Air and Sea 2024/06/14

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