The latest Iata estimates for Sustainable Aviation Fuel (SAF) indicated that, in 2023, SAF volumes reached over 600 million litres (0.5Mt), double the 300 million litres (0.25Mt) produced in 2022.

Additionally, SAF accounted for 3% of all renewable fuels produced, with 97% of renewable fuel production going to other sectors.

In 2024, SAF production is expected to triple to 1.875 billion litres (1.5Mt), accounting for 0.53% of aviation’s fuel need, and 6% of renewable fuel capacity. The small percentage of SAF output of overall renewable fuel is primarily due to the new capacity coming online in 2023 being allocated to other renewable fuels.

“The doubling of SAF production in 2023 was encouraging as is the expected tripling of production in 2024. But even with that impressive growth, SAF as a portion of all renewable fuel production will only grow from 3% this year to 6% in 2024. This allocation limits SAF supply and keeps prices high,” said Willie Walsh, Iata Director General. 

“Aviation needs between 25% and 30% of renewable fuel production capacity for SAF. At those levels aviation will be on the trajectory needed to reach nett-zero carbon emissions by 2050. Until such levels are reached, we will continue missing huge opportunities to advance aviation’s decarbonisation. It is government policy that will make the difference. Governments must prioritise policies to incentivise the scaling-up of SAF production and to diversify feedstocks with those available locally.”

CAAF/3 outcome 

The Third Conference on Aviation Alternative Fuels (CAAF/3) hosted by the International Civil Aviation Organization agreed to a global framework to promote SAF production in all geographies for fuels used in international aviation to be 5% less carbon intensive by 2030. To reach this level, about 17.5 billion litres (14Mt) of SAF need to be produced. 

“Governments want aviation to be nett zero by 2050. Having set an interim target in the CAAF process they now need to deliver policy measures that can achieve the needed exponential increase in SAF production,” said Walsh.

Demand for SAF is not the issue, as every drop of SAF produced has been bought and used. SAF added US$756 million to a record high fuel bill in 2023. At least 43 airlines have already committed to use some 16.25 billion litres (13Mt) of SAF in 2030, with more agreements being announced regularly.

Unlocking supply to meet demand is the challenge that needs to be solved. Projections are for producing over 78 billion litres (63Mt) of renewable fuels in 2029. Governments must set a policy framework that incentivises renewable fuel producers to allocate 25-30% of their output to SAF to meet the CAAF/3 ambition, existing regional and national policies as well as airline commitments.

Passenger support 

A recent Iata survey revealed significant public support for SAF. Some 86% of travellers agreed that governments should provide production incentives for airlines to be able to access SAF. In addition, 86% agreed that it should be a priority for oil companies to supply SAF to airlines.