Sustainable Aviation Fuel (SAF) has long been touted as the industry’s best first step towards decarbonisation. SAF today only accounts for a miniscule fraction of all jet fuel, but efforts to change that have progressed leaps and bounds this year. From proposed blending mandates in Europe and tax credits in the US to a series of vast offtake agreements by airlines, SAF truly came into the spotlight in 2021. In this Ishka+ original, SAF market experts from Argus Media look at SAF’s evolution over the past 12 months and scenarios that may unfold next.
- Q2 (04:26) For Giulia: When assessing the availability of SAF, an often-cited figure pre-pandemic is that SAF production only amounted to around 0.03% of world aviation fuel demand and around 0.05% in Europe.
- Q3 (09:30) When air traffic returns to 2019 levels, will these figures still be accurate, and if not, how will they shift?
- Q4 (11:31) For Alfonso: Moving to pricing, what SAF prices does Argus track and how representative are they of the prices airlines might be paying for SAF?
- Q5 (17:25) For Alfonso: We have heard that offtake agreements being signed by airlines with SAF providers can be for substantially lower prices than spot prices – how wide is that difference typically?
- Q6 (21:20) For Alfonso: With Fit for 55 in the EU proposing the end of a tax exemption for fossil kerosene (but a possible waiver for SAF) and the Build Back Better Act introducing tax credits for SAF, how much closer are we today to price parity between SAF and conventional jet fuel in these key markets?
For any questions, please email giulia.squadrin@argusmedia.com and alfonso.berrocal@argusmedia.com