IATA should have been delighted. In 2024, SAF's sustainable air fuel production volumes reached 1 million tonnes (1.3 billion litres). That's double the 0.5 million tonnes (600 million litres) produced in 2023. Sustainable jet fuel accounted for 0.3 % of global jet fuel production.for 11 % of the world's renewable fuel production.
However, this figure is significantly lower than previous estimates. Previous estimates predicted SAF production of 1.5 million tonnes (1.9 billion litres) by 2024. But the main production facilities for...
IATA should have been delighted. In 2024, SAF's sustainable air fuel production volumes reached 1 million tonnes (1.3 billion litres). That's double the 0.5 million tonnes (600 million litres) produced in 2023. Sustainable jet fuel accounted for 0.3 % of global jet fuel production.for 11 % of the world's renewable fuel production.
However, this figure is significantly lower than previous estimates. Previous estimates predicted SAF production of 1.5 million tonnes (1.9 billion litres) in 2024. But the main sustainable jet fuel production facilities in the United States have postponed the increase in production until the first half of 2025. For example, in 2025, IATA estimates that SAF production should reach 2.1 million tonnes (2.7 billion litres)This represents 0.7 % of total jet fuel production and 13 % of global renewable fuels production capacity.
Lower than expected production
" SAF volumes are increasing, but we are disappointed by the slow pace. Governments are sending mixed signals to oil companies, which continue to receive subsidies for their exploration and production of fossil oil and gas. While investors in the production of new-generation fuels seem to be waiting for guarantees of easy money before taking the plunge. With airlines achieving a net margin of only 3.6 %, expectations of quick gains in profitability by SAF investors need to be tempered." explains Willie Walsh, Director General of IATA.
" But make no mistake: airlines are eager to buy SAF. And there is money to be made for investors and companies who see the long-term future of decarbonisation. Governments can accelerate progress in production. In particular, by abolishing subsidies for the production of fossil fuels and replacing them with strategic incentives for the production of renewable energy, including FAS"says Willie Walsh, Director General of IATA.
Energy transition on a global scale
In fact, IATA would like to see the production of sustainable air fuel form part of a global energy transition.. And not just in terms of transport. " Solving the problem of energy transition for aviation will also benefit the economy as a whole, as renewable fuel refineries will produce a wide range of fuels used by other industries. Only a small proportion will actually be used by airlines. So the whole world needs to produce as much renewable energy as possible. "underlined Marie Owens Thomsen, IATA Senior Vice President for Sustainable Development and Chief Economist.
IATA's analysis shows that achieving net zero CO2 emissions by 2050 will require between 3,000 and 6,500 new renewable fuel production plants. These plants will also produce renewable diesel and other fuels for other industries.
The average annual investment required to build these new facilities over a 30-year period is around 128 billion dollars per year, in the best case scenario. It is important to note that this amount is much lower than the total sum of investments in the solar and wind energy markets, estimated at 280 billion dollars per year between 2004 and 2022.
" Governments must therefore rapidly put in place concrete political incentives to accelerate the production of renewable energy. Much of the necessary funding could be obtained by redirecting some of the subsidies that governments give to the fossil fuel industry. "said Willie Walsh.
Three measures to speed up production
IATA would like governments to implement three measures to accelerate the development of sustainable air fuel production. The association would like refineries can co-process up to 5 % of renewable raw materials with crude oil flows. By 2050, co-processing could save $347 billion in capital expenditure, as there would be no need to build more than 260 new renewable fuel production plants.
IATA would also like to diversify FAS production. There are 11 certified processes for producing sustainable fuels, mainly from used cooking oil or animal fats. SAF volumes could include production from other certified sectors, in particular Alcohol-to-Jet (AtJ) and Fischer-Tropsch (heterogeneous catalytic reduction of carbon monoxide (CO) by hydrogen). The new productions will use biological and agricultural waste and residues.
Finally, IATA is proposing to create a truly global FAS market where all airlines can choose producers to buy sustainable fuel.
