Sustainable Aviation Fuel, or SAF as it’s now widely known, is never far from the headlines. Made from so-called renewable sources, the fuels are said to be a ‘gamechanger’ by the UK Chancellor Rachel Reeves, limiting the environmental damage of flying. Even though this has been challenged by some, alternative aviation fuels are here to stay, with a new mandate from Westminster.

From this year, 2% of all jet fuel used in the UK must be SAF, rising to 10% by 2030 and climbing again by 2040, and there’s a similar programme in Europe, ReFuelEU.

The British Government argues that SAF emits 70% less carbon emissions over its lifetime. Last year, production volumes globally reached one million tonnes, double that of the year before, according to IATA.

This sounds like a lot, but UK aviation consumes over 12 million tonnes of jet fuel each year. For travel buyers looking to drill down on their Scope 3 emissions, the big question is how to get hold of the stuff. There are a number of avenues (see next page), however there can be challenges.

“Making sense of this sector is like unravelling layers of an onion, working out who are the producers, suppliers and middlemen. With any scheme, I am always looking for the closest line of sight to the SAF producer,” explains John Harvey, founder of travel consultancy Globalyse and former Chief Marketing Officer of HRG.

Remember carbon offsets? Well, the market for SAF is reminiscent of this, with accusations of greenwashing and double counting. Integrity in reporting will therefore be essential going forwards, where claims are based on transparent and verifiable data, with a clear justification of their environmental impact.

This is where credible standards come in; the Roundtable on Sustainable Biomaterials (RSB) Book and Claim Standard is one and the Sustainable Aviation Buyers Alliance’s (SABA) Sustainability Framework for SAF is another.

Then there’s the issue of whether it’s sustainable at all. A study commissioned by the European Consumer Organisation, BEUC thinks not. Currently a lot of SAF comes from used cooking oil, animal fats or agricultural waste. Although it contributes to reducing the harmful environmental aspects of flying, the term “sustainable here is too absolute and not concrete enough,” it says. 

For instance, the amount of land needed to produce the required amount of fuel via agricultural means would be 68% of the total land under production in the UK, according to a Royal Society report.

These are still early days. The quality of current SAF used does matter. There’s only so much farm waste and residue oil available to fuel producers, while new raw materials such as algae and novel vegetable oils based on regenerative farming practices are underdeveloped. So are ‘power-to-liquids’, which use green hydrogen and carbon capture to generate a liquid jet fuel, often called an e-fuel.

But if travel buyers are getting in early with purchases, they’re helping to kickstart the industry of the future, in a similar way to investments in solar power decades ago. Solar is now cheap to install, ubiquitous and has lower generation costs than new fossil fuel projects. So, what are the options?

Buy it direct from producers

This is the best way to source SAF. You then have a clear line of sight on what you’re getting and from whom. Transparency and traceability matters. One of the world’s largest producers and the most prominent in Europe is the Finnish company Neste. Many buyers will not have the volumes to source directly. However, knowing who the producer is at the end of the supply chain is essential, and that they are reputable. World Energy, Alder Fuels and SkyNRG are also big players in this space.

Buy it from airlines

Air France-KLM is a standout, then there’s United Airlines and Norwegian. T&E’s SAF Observatory ranks airlines on their use of SAF and what it’s sourced from.

Airlines have subsequently partnered with energy companies to source the stuff, some of which are also fossil fuel firms. For instance, Air France-KLM has an agreement with TotalEnergies to produce SAF.

IATA plans to launch a SAF registry this quarter allowing any airline to source certified and compliant fuel.

In a recent development, easyJet has been trialling its own SAF scheme with customer Airbus and is now rolling it out to other corporates. Under the scheme, easyJet will work with corporate partners to determine a specific quantity of SAF to cover their travel requirements.

Once it has pooled demand, it will use its purchasing power to buy the SAF from a fuel supplier at a better price and deliver it to a chosen airport where the SAF will be used by all carriers operating there.

Corporates are provided with non-tradeable, verified SAF certificates which they can register as part of their Scope 3 reporting (see more on page 26).

Buy it from TMCs

Whether it’s ATPI, CWT, Reed & Mackay, American Express GBT or other travel management companies, SAF can be purchased through a ‘book and claim’ system, where SAF is ‘booked’ into a fuel system and the benefits are ‘claimed’ elsewhere.

A number of TMCs source their fuel direct from producers such as Neste. Again, travel managers must know where their SAF is coming from. Due diligence is essential.    

Buy it from digital platforms

New digital and data-fed platforms are now available to travel buyers. A number are more widely active in the climate technology industry.

For instance, CWT and BCD Travel have adopted Berlin-based Squake. This allows corporate travel buyers to use an automated solution for procuring SAF on a trip-by-trip basis. Such platforms offer wider carbon budgeting, forecasting and reporting tools to clients. Squake again sources SAF from Neste directly.

Buy it using blockchain tools

Blockchain allows for a reputable digitised public ledger for SAF, so that purchases are efficient, traceable and transparent with environmental data on the fuel used.

It is why Amex GBT has adopted the technology through Avelia, a blockchain powered book-and-claim solution, which involves Shell Aviation and Accenture. Rolls-Royce, Google, Delta Air Lines and Bank of America are just some of the 20 or so firms signed up to Avelia.

Buy it from energy suppliers

Traditional fossil fuel companies are also getting in on the act, including BP, Chevron, Shell, TotalEnergies, ExxonMobil and Eni.

These six oil majors have 43 biofuel projects that are either already operational or are targeted to start up by 2030, according to Rystad Energy.

Many are creating their own biorefineries using ‘waste and residues from the circular economy.’ Some companies are doing direct location-based deals on SAF.

For instance, DHL buys from Shell at Brussels Airport. This is a carbon ‘insetting’ practice – as opposed to offsetting, since it addresses carbon emissions directly inside DHL’s own value chain.

The issues with investing in SAF

If air transport is to become more sustainable, rapid action is needed to boost production of sustainable aviation fuels.

The UK Government is betting airport expansion on the ability to ramp up SAF.

Fuel demand will also have to rise since air passenger numbers globally are projected to more than double by 2050, undermining the industry’s ability to cut carbon emissions.

According to green group, Transport and Environment, such growth means the airline sector could be burning as much fossil kerosene as it did in 2023, even when using SAF for 42% of its fuel, as mandated by EU legislation.

The issue at the moment is a lack of supply and high prices, which are up to five times that of traditional jet fuel. Investing in SAF is likely to bring prices down, but more capacity is needed.

It doesn’t help that there is a lack of biorefineries under construction. These require extensive capital expenditure.

Plants typically cost £600 million to £2 billion to reach economies of scale and tend to run at a loss during their first years of operation.

Shell has now paused SAF projects and in the U.S. President Donald Trump has vowed to repeal Joe Biden’s green measures under the Inflation Reduction Act. This includes tax credits for SAF producers, so uncertainly plagues the sector, globally.

Who’s responsibility is it anyway?

IATA says oil majors, who supply jet fuel to the industry, should be responsibility for the ramp up of SAF, rather than airlines, who do not produce any fuel themselves directly.

It’s why the UK Government is now talking about a levy on traditional fuel suppliers. The levy would cover the cost of payments to SAF producers, so the country can meet its mandate for SAF production. This idea is out for consultation.

Ultimately, it will be the traveller that pays, but right now a stand-off could be looming between oil companies who may not want to produce SAF without long-term commitments, and airlines who won’t necessarily commit to SAF without lower prices.

In the UK, a levy would deal with this, providing a price guarantee and a so-called revenue certainty mechanism for SAF producers. Watch this space!