SAF production interest needs 'a push' - IATA

BTN News
Tuesday, 04 June 2024

The International Air Transport Association (IATA) says its projections for a tripling of Sustainable Aviation Fuels (SAF) production in 2024 to 1.9 billion litres (equal to 1.5 million tonnes) are on track and will account for 0.53 per cent of aviation’s fuel needs in 2024. 


“SAF will provide about 65 per cent of the mitigation needed for airlines to achieve net zero carbon emissions by 2050, but we still have a long way to go," said Willie Walsh, IATA’s director general.

Some 140 SAF fuel projects should be in production by 2030 and could take capacity to 51 million tonnes by 2030, with production capacity spread across almost all regions. 

“The interest in SAF is growing and there is plenty of potential. But the concrete plans that we have seen so far are far from sufficient. 

"Governments have set clear expectations for aviation to achieve a five per cent CO2 emissions reduction through SAF by 2030 and to be net zero carbon emissions by 2050. They now need to implement policies to ensure that airlines can actually purchase SAF in the required quantities,” said Walsh.
There are several potential solutions to accelerate aviation’s access to critical SAF quantities:

•    Diversify feedstocks: About 80 per cent of SAF expected to be produced over the next five years is likely to come from hydrogenated fatty acids (HEFA), yjerefore used cooking oils, animal fats and so on. Accelerating the use of other certified pathways and feedstocks (including agricultural and forestry residues and municipal waste) will greatly expand the potential for SAF production.

•    Co-processing: Existing refineries can be used to co-process up to five per cent of approved renewable feedstocks alongside crude oil streams. This solution can be implemented quickly and will materially expand SAF production. However, policies must be put in place urgently to facilitate consistent life-cycle assessments. 

•    Incentives to improve the output mix at renewable fuel facilities: The current renewable fuel facilities are designed to maximise diesel production and often benefit from incentives in addition to the long-standing demand from road transportation. As road transport transitions to electrification, policies should be established to shift production toward the long-term need of air transport for SAF. Incentives aimed at SAF can help facilitate the renewable diesel-SAF switch, which requires minimal modifications at existing stand-alone renewable fuel facilities.

•    Incentives to boost investments in renewable fuel production: The production of all renewable fuels will need to scale up rapidly, and among them, the need for a growing share of SAF production will necessitate strong policy support. One such clearly-articulated policy is the US Grand Challenge and the US$3 billion of investments it supports. Stable, long-term tax credits would further maximise SAF production capability in both existing and new facilities. 

“Incentives to build more renewable energy facilities, strengthen the feedstock supply chain, and to allocate a greater portion of renewable fuel output to aviation would help decarbonise aviation. Governments can also facilitate technical solutions with accelerated approvals for diverse feedstocks and production methodologies as well as co-processing renewable feedstocks in crude oil plants. No one policy or strategy will get us to the needed levels. But by using a combination of all potential policy measures, producing sufficient quantities of SAF is absolutely possible,” said Walsh.

A recent IATA survey revealed significant public support for SAF. Some 86 per cent of travellers agreed that governments should provide incentives for airlines to use SAF. In addition, the vast majority of air passengers agree (86 per cent) that leading oil corporations should prioritise the production of SAF.

Registry

Meanwhile, IATA will establish the SAF Registry (Registry) to accelerate the uptake of sustainable aviation fuels and says 17 airlines, one airline group, six national authorities, three original equipment manufacturers (OEMs) and one fuel producer already support the registry's development. It is expected to launch in the first quarter of 2025. 

“SAF is key to aviation’s decarbonisation and the SAF Registry will help.

"Governments need a trusted system to track the quality and quantities of SAF used. SAF producers need to accurately account for what has been delivered and effectively decarbonised. Corporate customers must be able to transparently account for their Scope 3 emissions and airlines must have certainty that they can claim the environmental benefits of the SAF they purchased. 

"The Registry will meet all these needs and help create a global SAF market by ensuring that airlines have access to SAF wherever it is produced, and that SAF producers have access to airlines regardless of their location,” said Walsh.  
 
Capabilities 

▪   Wide Geographic Scope: The Registry will allow airlines to purchase SAF regardless of where it is produced. Each batch’s certified environmental attributes can be tracked and assigned to the purchasing airline. By ensuring that the environmental attributes of SAF are properly recorded and transferred between parties, airlines and their customers can report emissions reductions accurately, aligning with any reporting obligations and international standards.  

▪   Broad Application and Neutrality: The Registry will be neutral with respect to regulations, types of SAF, and any other specificities under relevant jurisdictions and frameworks, making it capable of handling all such user requirements. As the initiator, IATA is working with certification organisations and fuel producers to standardise data for efficient processing.  

▪   Regulatory Compliance: The Registry will help airlines meet regulations such as the Carbon Offsetting Reduction Scheme for International Aviation (CORSIA) and the EU Emissions Trading Scheme (ETS tax), ensuring compliance with SAF mandates and providing transparency to authorities regarding emissions reductions.  The Registry will ensure that the sector’s agreed SAF accounting and reporting principles are adhered to and fully in alignment with international protocols and industry best practices. It will provide safeguards against double counting and double claiming; and ensure the immutability and integrity of all interventions under the Registry.  

▪   Governance: Independent governance will ensure the system’s impartiality and robustness.  

▪   Cost Efficiency: Participation in the registry will be on a cost-recovery basis to avoid adding unnecessary cost barriers to the SAF ramp-up. 

Multiple stakeholders 

The Registry is being developed in consultation with airlines, government authorities, international organisations, OEMs, fuel producers and suppliers, airports and corporate travel management companies.  

Key and unique among the project’s stakeholders is the participation of governments with the specific aim of ensuring compliance with the requirements of civil aviation authorities. Relevant authorities can swiftly validate and approve claims, update national emission inventories, and align their actions with international standards, such as those set by the International Civil Aviation Organization (ICAO).  

SAF production interest needs 'a push' - IATA

BTN News
Tuesday, 04 June 2024

The International Air Transport Association (IATA) says its projections for a tripling of Sustainable Aviation Fuels (SAF) production in 2024 to 1.9 billion litres (equal to 1.5 million tonnes) are on track and will account for 0.53 per cent of aviation’s fuel needs in 2024. 


“SAF will provide about 65 per cent of the mitigation needed for airlines to achieve net zero carbon emissions by 2050, but we still have a long way to go," said Willie Walsh, IATA’s director general.

Some 140 SAF fuel projects should be in production by 2030 and could take capacity to 51 million tonnes by 2030, with production capacity spread across almost all regions. 

“The interest in SAF is growing and there is plenty of potential. But the concrete plans that we have seen so far are far from sufficient. 

"Governments have set clear expectations for aviation to achieve a five per cent CO2 emissions reduction through SAF by 2030 and to be net zero carbon emissions by 2050. They now need to implement policies to ensure that airlines can actually purchase SAF in the required quantities,” said Walsh.
There are several potential solutions to accelerate aviation’s access to critical SAF quantities:

•    Diversify feedstocks: About 80 per cent of SAF expected to be produced over the next five years is likely to come from hydrogenated fatty acids (HEFA), yjerefore used cooking oils, animal fats and so on. Accelerating the use of other certified pathways and feedstocks (including agricultural and forestry residues and municipal waste) will greatly expand the potential for SAF production.

•    Co-processing: Existing refineries can be used to co-process up to five per cent of approved renewable feedstocks alongside crude oil streams. This solution can be implemented quickly and will materially expand SAF production. However, policies must be put in place urgently to facilitate consistent life-cycle assessments. 

•    Incentives to improve the output mix at renewable fuel facilities: The current renewable fuel facilities are designed to maximise diesel production and often benefit from incentives in addition to the long-standing demand from road transportation. As road transport transitions to electrification, policies should be established to shift production toward the long-term need of air transport for SAF. Incentives aimed at SAF can help facilitate the renewable diesel-SAF switch, which requires minimal modifications at existing stand-alone renewable fuel facilities.

•    Incentives to boost investments in renewable fuel production: The production of all renewable fuels will need to scale up rapidly, and among them, the need for a growing share of SAF production will necessitate strong policy support. One such clearly-articulated policy is the US Grand Challenge and the US$3 billion of investments it supports. Stable, long-term tax credits would further maximise SAF production capability in both existing and new facilities. 

“Incentives to build more renewable energy facilities, strengthen the feedstock supply chain, and to allocate a greater portion of renewable fuel output to aviation would help decarbonise aviation. Governments can also facilitate technical solutions with accelerated approvals for diverse feedstocks and production methodologies as well as co-processing renewable feedstocks in crude oil plants. No one policy or strategy will get us to the needed levels. But by using a combination of all potential policy measures, producing sufficient quantities of SAF is absolutely possible,” said Walsh.

A recent IATA survey revealed significant public support for SAF. Some 86 per cent of travellers agreed that governments should provide incentives for airlines to use SAF. In addition, the vast majority of air passengers agree (86 per cent) that leading oil corporations should prioritise the production of SAF.

Registry

Meanwhile, IATA will establish the SAF Registry (Registry) to accelerate the uptake of sustainable aviation fuels and says 17 airlines, one airline group, six national authorities, three original equipment manufacturers (OEMs) and one fuel producer already support the registry's development. It is expected to launch in the first quarter of 2025. 

“SAF is key to aviation’s decarbonisation and the SAF Registry will help.

"Governments need a trusted system to track the quality and quantities of SAF used. SAF producers need to accurately account for what has been delivered and effectively decarbonised. Corporate customers must be able to transparently account for their Scope 3 emissions and airlines must have certainty that they can claim the environmental benefits of the SAF they purchased. 

"The Registry will meet all these needs and help create a global SAF market by ensuring that airlines have access to SAF wherever it is produced, and that SAF producers have access to airlines regardless of their location,” said Walsh.  
 
Capabilities 

▪   Wide Geographic Scope: The Registry will allow airlines to purchase SAF regardless of where it is produced. Each batch’s certified environmental attributes can be tracked and assigned to the purchasing airline. By ensuring that the environmental attributes of SAF are properly recorded and transferred between parties, airlines and their customers can report emissions reductions accurately, aligning with any reporting obligations and international standards.  

▪   Broad Application and Neutrality: The Registry will be neutral with respect to regulations, types of SAF, and any other specificities under relevant jurisdictions and frameworks, making it capable of handling all such user requirements. As the initiator, IATA is working with certification organisations and fuel producers to standardise data for efficient processing.  

▪   Regulatory Compliance: The Registry will help airlines meet regulations such as the Carbon Offsetting Reduction Scheme for International Aviation (CORSIA) and the EU Emissions Trading Scheme (ETS tax), ensuring compliance with SAF mandates and providing transparency to authorities regarding emissions reductions.  The Registry will ensure that the sector’s agreed SAF accounting and reporting principles are adhered to and fully in alignment with international protocols and industry best practices. It will provide safeguards against double counting and double claiming; and ensure the immutability and integrity of all interventions under the Registry.  

▪   Governance: Independent governance will ensure the system’s impartiality and robustness.  

▪   Cost Efficiency: Participation in the registry will be on a cost-recovery basis to avoid adding unnecessary cost barriers to the SAF ramp-up. 

Multiple stakeholders 

The Registry is being developed in consultation with airlines, government authorities, international organisations, OEMs, fuel producers and suppliers, airports and corporate travel management companies.  

Key and unique among the project’s stakeholders is the participation of governments with the specific aim of ensuring compliance with the requirements of civil aviation authorities. Relevant authorities can swiftly validate and approve claims, update national emission inventories, and align their actions with international standards, such as those set by the International Civil Aviation Organization (ICAO).