New Report: Pathways to Sustainable Aviation Fuels (North America Edition)
Highlighting the key opportunities and challenges for North America’s rapidly growing SAF industry.
Produced in conjunction with the upcoming Sustainable Aviation Futures North America Congress in Houston (scheduled from 2 to 4 October 2024), this report outlines critical opportunities and challenges in the SAF industry.
Download the report here.
As the aviation industry looks towards its 2050 net-zero target, North America, particularly the United States, has emerged as the undisputed leader in Sustainable Aviation Fuel (SAF) production.
One of the main reasons for the rise of the North American SAF industry has been a supportive regulatory environment. The 2021 US Sustainable Skies Act and the 2022 Inflation Reduction Act offer SAF producers credits of $1.25 per gallon for achieving at least a 50% reduction in greenhouse gas emissions. State-level initiatives, such as Washington’s Senate Bill 5447, provide additional incentives of up to $2 per gallon.
Moreover, the US government’s ambitious SAF Grand Challenge aims for an annual production of 3 billion gallons by 2030, while Canada is implementing mandatory SAF blending requirements through its Clean Fuel Regulations. Major airlines like United, Delta, and Air Canada have also made significant investments and commitments.
As a result, though SAF currently represents less than 1% of total fuel growth consumption, the industry is poised for exponential growth.
Our new report focuses on:
Exploring and analysing the hurdles in SAF adoption: SAF adoption is hindered by high production costs compared to jet fuel, limited production capacity and feedstock, lack of requisite infrastructure, and regulatory uncertainties and shifting political landscapes.
The potential of e-fuels: E-fuels, which are considered a promising alternative, face significant hurdles such as high production costs, intensive energy requirements, and the need for green hydrogen and CO2.
Addressing the challenges in the current SAF landscape: Supportive policies and incentives, securing long-term offtake agreements, diversifying feedstocks, exploring innovative financing options, and utilising book-and-claim systems.
The path forward: The future of SAF and e-fuels requires a balanced approach that includes both immediate actions and long-term strategies. Effective collaboration and investment in research and development are also crucial.
Providing a comprehensive directory of North American SAF enterprises: A detailed list of companies operating in the North American SAF sector, serving as a valuable resource for industry stakeholders.
SAF will play a pivotal role in aviation’s journey to net zero. This report aims to offer valuable insights and actionable strategies for airlines, policymakers, and industry stakeholders as they navigate the complex landscape of SAF implementation.
To learn more about innovators in the electric, hybrid-electric, hydrogen and SAF spaces, check out our previous reports here. Our new book, Sustainability in the Air, as well as SimpliFlying CEO Shashank Nigam’s podcast of the same name.
Also, check out our new offering, the SimpliFlying Launchpad, a platform that accelerates sustainable aviation innovation by connecting airlines and airports with curated clean tech startups. The programme also engages investors, governments, and corporate partners, supporting environmental goals and fostering growth in the sustainable aviation sector.