Frankfurt airport operator Fraport CEO Stefan Schulte has highlighted a critical challenge facing the European Union's aviation sector: the insufficient production of sustainable aviation fuel (SAF) to meet mandated quotas. Speaking at a recent event, Schulte emphasized the urgency for the new European Commission to address this issue, crucial for reducing carbon emissions.
SAF, derived from bio-based sources like used cooking oil and wood chips, offers significant environmental benefits, potentially cutting emissions by up to 80% compared to traditional jet fuel. Despite its promise, production levels are currently inadequate. “There is not enough sustainable fuel to meet the quotas. Production is not ramping up fast enough,” Schulte stated.
See also: IATA Forecasts Tripled Sustainable Aviation Fuel Production by 2024
Under EU regulations, flights departing from EU airports must incrementally increase their use of SAF, with a target of 2% of total fuel by 2025, rising to 70% by 2050. Presently, SAF only accounts for 0.2% of global jet fuel consumption, highlighting the substantial gap that needs to be bridged.
One major impediment is the cost: biofuel-based SAF is significantly more expensive, priced three to five times higher than conventional jet fuel. This economic barrier has deterred faster adoption and production scaling. Producers have also expressed concerns over the lack of certainty in demand forecasting, fearing potential oversupply in the future.
See also: Study Shows Significant Emission Reductions with Sustainable Aviation Fuel in Commercial Aircraft
Despite these challenges, industry voices such as Willie Walsh from the International Air Transport Association (IATA) remain optimistic about demand. “Every drop of SAF that's produced has been used and will be used,” Walsh affirmed, underscoring the existing market appetite for sustainable alternatives.
