Does Sustainable Jet Fuel Justify Pay More for Carbon Zero?

Sustainable aviation fuel (SAF) is made from sustainable resources including feedstocks that consist of forestry and agricultural waste, used cooking oil, carbon captured from the air, and green hydrogen that can be mixed with any fossil jet fuel to reduce emissions. It is a ‘drop-in’ fuel meaning it can be added with no changes needed to the aircraft or infrastructure.

Food crops, like soy and palm oil as these sources are responsible for high rates of deforestation.’ There are renewable feedstocks that recycle carbon rather than adding carbon to the atmosphere, closing the carbon loop. This loop can lower the aviation industry’s carbon footprint and dependency on fossil fuels by a whopping 70%.

An add-on advantage is that this SAF is a ‘drop-in’ fuel which means it can be mixed or replace traditional jet fuel without having to alter any of the infrastructure or equipment. The WEF Forum enables customers to take ownership of their emissions reduction goals. Corporate leadership and financial ingenuity can also help to fill in the monetary gaps that the COVID-19 pandemic has caused. The drastic reduction in air travel left many airlines with a bleak future. While one could easily expect normalcy on all fronts it cannot be at the cost of commitments to achieve net-zero emissions. As Grazia Vittadini, Chief Technology Officer at Airbus, clearly pointed out earlier, pursuing one at the expense of the other “is a false choice.” The core problem in industries like aviation is that it faces economic and commercial barriers to reducing emissions. Wind and solar are proving to be cost-competitive with conventional fossil fuel power.

There is very little time for experimentation with matters of urgent importance like delivering time-sensitive essential goods, such as vaccines, which requires aviation’s speed. So yes it is critical that we can return to the skies but it is more important to do it sustainably, according to Lucas N. Joppa, CEO, Microsoft, and Ned Harvey Clean Skies for Tomorrow Coalition, RMI.

Should one compare the available stats on aviation, it is clear that circa 2019 this industry was responsible for 2-3% of overall global emissions. However, if the forecast of the International Air Transport Association (IATA) is to be believed, the accelerated numbers could pave the way for significantly high carbon emissions in this decade. In addition, a growing proportion of airline passengers will be millennials who are likely to book with sustainable brands that as mentioned earlier give the option of flying with lesser emissions, a value that aligns with their own. And that in many ways adds to the problem.

While the number of travellers may increase the guarantee that SAF will be available just as freely with all economic and premium airlines is a sore point that only time will clarify. According to statistics, SAF emits a minimum of 75% less emissions compared to fossil jet fuel, including from production, distribution, transportation, and combustion while reducing other harmful emissions like particulates and sulfur by 90% and 100% respectively. These reductions are critical ways to reduce the impact of climate change on our planet.

Future government policy is critical but will be rendered insufficient without long-term corporate passenger and air cargo customers. This is especially relevant when aircraft operators are unable to carry the full cost of SAF and there is an increased demand from and of air transport customers and corporate travelers, in particular. They will play the key to reducing the environmental impact of their travel.

If the numbers are right corporate demand alone could cover over a third of the price premium associated with reaching the International Air Transport Association (IATA)’s 2025 global SAF volume target.

Demonstrating a laser-focused commitment from aviation’s value chain to continue enabling the social and economic benefits of the aviation sector while opening up new opportunities will assist in decarbonization.

SAF is recognized as the fastest and easiest in-sector decarbonization approach, but SAF is two to five times the price of conventional jet fuel. This led to the formation of RESCO. The SAFc framework is modeled on Energy Attribute Certificates (EACs), a well-established virtual accounting instrument. EACs are instruments that allow firms to make reliable renewable energy usage claims without the need to produce their own electricity.

While sustainability occupies the lion’s share in the commitments to the cause it has also been noticed in the wider economy that airlines are rarely getting a helping hand from an unlikely source to help them pay for pricey sustainable aviation fuel

International aviation and shipping are unique in that they were excluded from national carbon budgets under the Paris Agreement but must work with international regulators to reduce emissions from these sectors. Now by 2050 to have halved carbon emissions from aviation against 2005 levels. A value chain to collaborate to advance efforts towards net-zero flying.

This brings us to our moot point.: Do we really save when flying or is it justified to pay more to travel on the same flight at the same time with just a different fuel?

The answer remains to be seen.