Is sustainable aviation fuel the key to decarbonizing aviation?
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Since 1903, when the Wright brothers launched their brief but historic first flight, air travel has revolutionized the way we connect across vast distances. Today, way over 100,000 flights carry passengers and freight around the world every single day — yet air travel comes at a significant cost to the planet, with the aviation sector responsible for up to 3% of global CO2 emissions.
This impact has sparked a movement toward avoiding air travel, especially in Scandinavia, where the concept of "flygskam" or "flight shame" has taken hold. This sentiment is particularly strong among younger generations, with older generations less inclined to change their established habits.i
Switching short-haul flights for train journeys is part of the solution, but it won’t get us far enough. A 2021 survey by McKinsey found that while emissions were the top concern of respondents in 11 of the 13 countries it polled, only 36 percent of travelers planned to fly less.ii
Given our collective reluctance to turn our backs on air travel, could sustainable aviation fuel (SAF) be the solution we’re searching for?
The aviation sector has committed to reaching net zero by 2050, but doing so represents a considerable challenge. Air New Zealand's recent decision to retract its 2030 climate goals highlights the complexities the industry faces.
The airline points to delays in the delivery of fuel-efficient aircraft and the higher costs associated with alternative jet fuels as the reasons for its decision. These hurdles are significant, but since the world isn’t going to stop flying, they have to be overcome.
Despite its higher cost, SAF offers one of the most promising pathways to achieving rapid decarbonization in aviation. A renewable alternative to conventional kerosene fuel, it delivers over 80% lower carbon emissions over its lifecycle and is compatible with existing aircraft engines and airport infrastructure.
While the benefits are clear, there are concerns about greenwashing. Critics correctly argue that its current impact is minimal. This is largely due to the fact that SAF production is in its early stages, resulting in limited availability and a cost three to four times higher than conventional kerosene. Although there is a long way to go before SAF makes a substantial impact, progress is underway.
Upcoming legislative changes are accelerating this progress, taking the SAF market in Europe from voluntary to mandatory. The new rules will require SAF to be blended with conventional kerosene in increasing volumes from 2025 onward, reaching 70% by 2050. Some airlines are planning to move more quickly: Ryanair, for example, is targeting 12.5% by 2030 — more than double the 2030 mandatory level of 6%.
The future of sustainable air travel
The EU’s targets are ambitious, but we’ve already taken essential steps to ensure we’ll be ready to fulfill the 2025 blending mandate of 2% in our core markets of Austria, Germany, and Romania.
We began laying the groundwork in 2022, when we started producing SAF from used cooking oil. Partnering with other early movers like Austrian Airlines (Lufthansa Group), Ryanair, Air France-KLM, and Wizz Air, we introduced it into the supply chain and ensured a ready supply at Schwechat airport. Since then, we’ve been gearing up for the next wave, signing Memorandums of Understanding with numerous airline partners across Europe to supply substantial volumes of SAF until at least 2030.
In addition, we’ve created SAF Business Solutions, an innovative program that allows companies to reduce their scope 3 emissions from air travel and freight using certificates. Unlike traditional offsetting programs that depend on carbon credits and external projects, SAF Business Solutions ensures that companies make a direct and measurable difference in the aviation industry's carbon footprint.
As the blending mandates increase over time, production capacity will need to be expanded to stay ahead of demand. We’re scaling up our infrastructure to meet these requirements, with a strong pipeline of projects in place. Our recently announced large-scale plant at our Petrobrazi refinery in Romania will have a production capacity of 250 metric kilotons per year of combined SAF and renewable diesel by 2028, positioning us as the first major producer of sustainable fuels in Southeast Europe.
SAF is not a silver bullet. Decarbonizing aviation will require a multifaceted approach: Governments need to create the right decarbonization incentives, engine manufacturers need to increase the efficiency of engines, and OEMs need to produce the most fuel-efficient models possible. Nevertheless, SAF must play a pivotal role in our approach, as it offers a proven path to reducing emissions swiftly and effectively.
i YouGov (2020), ‘Nachhaltiges Reisen: Wie umweltbewusst sind deutsche Urlauber?” accessed at https://yougov.de/travel/articles/28108-nachhaltiges-reisen-wie-umweltbewusst-sind-die-deu on 26 August 2024.
ii McKinsey & Company (April 2022), “Opportunities for industry leaders as new travelers take to the skies” accessed at https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/opportunities-for-industry-leaders-as-new-travelers-take-to-the-skies#/ on 8 July 2024.