Table of Contents
As airlines look to decarbonize their fleets, Sustainable Aviation Fuel (SAF) holds great promise. It can be made from a variety of feedstocks ranging from waste fats to some types of plant sugars and is estimated to emit 70 percent less carbon than standard jet fuel.
Sustainable Aviation Fuel (SAF) can achieve life cycle GHG reductions of up to 80%, and emerging production pathways could manage net-negative footprints. This makes it an essential tool to help aviation reach its 2050 climate goals.
Reduced Carbon Emissions: Sustainable Aviation Fuel (SAF)
We know that aviation is a huge contributor to carbon emissions, and there are many opportunities for airlines to reduce their emissions through the use of sustainable aviation fuel (SAF). This non-fossil fuel can cut aviation’s greenhouse gas footprint by up to 80% over its lifecycle. And it can be used as a “drop-in” replacement for petroleum jet fuel, without requiring any changes to aircraft or infrastructure.
SAF is produced from a variety of sustainable resources, including waste animal fats and oils, forestry and municipal waste, energy crops, and used cooking oil. We need to invest in domestic first-of-a-kind SAF production facilities and ensure that these plants have access to the feedstocks they need to produce fuel. We also need to ensure that airlines have the incentives they need to make SAF a part of their fleets.
One challenge is that Sustainable Aviation Fuel (SAF) is currently more expensive than kerosene-based jet fuel. And airlines operate on very thin margins, so even a small increase in cost can significantly impact their bottom lines.
To bring down costs, the industry needs to scale SAF production. This can be done by promoting the adoption of SAF by airlines, encouraging them to sign up for commercial contracts with producers and enabling them to take advantage of the Inflation Reduction Act tax credits and LCFS expansion. We need to also support research and development for technologies that can further lower the cost of SAF.
Reduced Fuel Consumption
One of the main reasons for airlines to move to sustainable aviation fuel (SAF) is that it can reduce their overall carbon emissions by 65%. This is because SAF is produced from plant or animal materials that can be used as a replacement for fossil fuels in airplane engines.
The most popular SAF production pathways are ethanol and biodiesel, which are made from cooking oil and animal fat, respectively. Other alternatives include algae, biogas, biomass gasification + Fischer Tropsch, and power-to-liquid (PtL). SAF can be blended up to 50% with jet fuel depending on the feedstock and production method used.
Most of the SAF in use today is produced from vegetable oils such as camelina, rapeseed and safflower. This is a problem because these crops are not as efficient at producing energy as corn, and their production is linked to global food security issues. In addition, crop-based Sustainable Aviation Fuel (SAF) is largely grown in the tropics, where it contributes to deforestation and biodiversity loss.
In order to make SAF mainstream, it will have to become available in larger quantities and at a lower cost. This will require investments in research and development, as well as building infrastructure to produce SAF. Additionally, there are challenges such as competition with renewable diesel for feedstocks and limited feedstock diversity, which will need to be addressed in order to accelerate SAF adoption.
Reduced Water Use
Unlike traditional petroleum-based jet fuel, sustainable aviation fuel (SAF) uses renewable biomass or waste sources that have lower lifecycle carbon intensity. SAF can be produced from a variety of feedstocks including oil seed plants and energy grasses; agricultural and forestry residues; organic municipal solid waste; fats, oils and greases from food processing and meat production; algae; and industrial carbon monoxide waste gas. It can also be produced from captured carbon using power-to-liquid technology (PtL) and combined with green hydrogen produced from renewable energy and water, forming synthetic kerosene.
The largest barrier to Sustainable Aviation Fuel (SAF) production is cost. However, airlines are signaling demand, attracting investment and advocating for policy incentives to speed the pace of production. For example, Delta has partnered with a range of industry leaders and airlines to accelerate the development of a large-scale SAF hub in the US. In addition, the company is deploying its own fleet to test new low-carbon fuels.
Growing, sourcing, and producing Sustainable Aviation Fuel (SAF) from renewable and waste resources can create economic opportunities for farmers, while helping to improve environmental quality and boosting aircraft performance. This approach can reduce pressure on food crops, mitigate climate change, and protect biodiversity. It can also help to prevent deforestation, as the vast majority of global vegetable oil production is now expanding on land that could be used for food.
Reduced Waste
Sustainable Aviation Fuel (SAF) uses a variety of feedstocks to reduce life-cycle emissions. These include oil seed plants, energy grasses; biomass waste from food production and meat processing, including fats, oils, and greases; algae; and woody residue from agriculture and forestry. The sourcing of these feedstocks supports economic opportunities in rural communities, while helping to improve soil health and reducing nutrient loss.
Unlike fossil fuels that pull carbon from the earth, releasing it into the atmosphere, SAF recycles the carbon previously stored in the feedstocks used to make it. This allows SAF to be classified as a carbon-negative biofuel.
Because it is produced from a range of renewable and waste feedstocks, it also helps to support local economies and jobs. The refining of SAF occurs close to the source, minimizing transportation and processing costs. In addition, the growth of SAF production can help farmers diversify their crops and provide additional income in the off season.
To achieve a large enough market for Sustainable Aviation Fuel (SAF) to make an impact, it is essential to continue developing and deploying the technology. To do so, we need a collaborative approach involving government and regulating bodies, airlines, logistics companies, and individual and corporate travelers. Bank of America is proud to support the visionary clients that are leading efforts to advance sustainable agriculture, energy and transport solutions by investing capital at scale.
