Exxon Mobil Senior Vice President Jack Williams underscored cost as the primary hurdle in scaling up the adoption of sustainable aviation fuel (SAF). Despite its potential to significantly reduce carbon emissions, SAF currently represents only 0.2% of the jet fuel market, largely due to its higher price tag compared to traditional fuel.
Williams stated, “There's one big negative and that's the cost. As we think about how we want to grow SAF … we have got to focus on how do we minimize the costs?”
The demand for jet fuel is expected to surge from 7 million barrels a day to 12 million barrels a day by 2050. However, current production of SAF is a mere 15.8 million gallons per year, according to U.S. government data, highlighting the significant gap between demand and supply.
Williams highlighted the Biden administration's Inflation Reduction Act as a pivotal step in boosting biofuel production, along with advancements in carbon capture and storage and low carbon hydrogen technologies. President Biden initiated a challenge in 2021 aiming to supply at least 3 billion gallons of SAF annually by 2030.
Leading airlines, such as Delta Air Lines and Southwest Airlines, have expressed ambitions to replace 10% of their jet fuel with SAF by 2030, aligning with broader efforts to reduce aviation's carbon footprint.
