{"id":86747,"date":"2025-06-03T00:00:00","date_gmt":"2025-06-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/06\/03\/saf-policies-increasing-cost-of-production-to-usd-4-4-mn\/"},"modified":"2025-06-03T00:00:00","modified_gmt":"2025-06-03T00:00:00","slug":"saf-policies-increasing-cost-of-production-to-usd-4-4-mn","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/06\/03\/saf-policies-increasing-cost-of-production-to-usd-4-4-mn\/","title":{"rendered":"SAF policies increasing cost of production to USD 4.4 mn"},"content":{"rendered":"

Sustainable Aviation Fuel (<\/strong>SAF<\/strong>) production is projected to double and hit 2 mn tonnes in <\/strong>2025 \u2014 making up only 0.7% of airlines\u2019 total fuel consumption<\/strong>, IATA\u2019s Director General Willie Walsh said in a statement<\/a>. The doubled production \u2014 albeit representing a minor amount of the industry\u2019s total demand \u2014 could drive up the global fuel cost by an additional USD 4.4 mn. <\/p>\n

Behind the production hike:<\/strong> The UK and the EU issued mandates earlier this year to stipulate the integration of SAF in their aviation industry \u2014 in which both the UK SAF<\/a> and the EU\u2019s ReFuelEU Aviation<\/a> mandates require 2% of all jet fuel demand to be SAF starting in 2025. The UK aims to increase this rate to 10% by 2030 and 22% by 2040, whereas the EU is aiming for a 70% target by 2050. <\/p>\n

Current green policy could bleed airlines dry: <\/strong>The projected cost for the one mn tonnes of SAF required by the EU could cost a combined USD 2.9 mn \u2014 USD 1.2 bn from production costs and USD 1.7 bn from mandated compliance fees. This makes sustainable fuels five times more expensive than traditional jet fuel, highlighting what Walsh described as \u201cthe problem with the implementation of mandates before there are sufficient market conditions and safeguards\u201d that would keep prices reasonable. <\/p>\n

What can IATA do?<\/strong> IATA has already established its SAF registry in March<\/a> to manage a purchasing tracking system for the fuel emissions and cutbacks attributed to alternative fuels, as well as its usage and emission reductions. The registry provides technical support to organizations involved in the SAF supply chain and is overseen by the association\u2019s Civil Aviation Decarbonization Organization (CADO)<\/a>. The association also has a SAF Matchmaker<\/a> platform which connects airlines with SAF suppliers and producers. <\/p>\n

Gov\u2019ts need to step in as well:<\/strong> Governments need to focus on creating policies for the current market to make SAF more affordable \u2014 for producers to increase production and for airlines by limiting unnecessary fees. <\/p>\n

Some regional <\/strong>players are also doubling down on SAF:<\/strong> Emirates is investing <\/a>over USD 200 mn<\/a> in SAF, while actively testing SAF-powered flights from Singapore, Amsterdam, and London. Joramco is also investing in DHL\u2019s GoGreen Plus<\/a> program to integrate SAF practices into its operations. Qatar Airways also partnered with Virgin Australia and Renewable Development Australia to develop an SAF production facility<\/a> in North Queensland with a 96-mn-liter annual capacity. Red Sea Global and daa International signed an agreement in February with the Arab Petroleum Supply Company to supply<\/a><\/a>SAF<\/a>as a refueling option<\/a> for all airlines operating from the airport. <\/p>\n","protected":false},"excerpt":{"rendered":"

The projected cost of SAF in the EU makes it five times more expensive than traditional fuel<\/p>\n","protected":false},"author":1,"featured_media":86748,"comment_status":"","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[56],"tags":[145,732,55,381],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-86747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics-in-the-news","tag-aviation","tag-european-union","tag-logistics-in-the-news","tag-saf","wpautop","entry"],"acf":{"mongo_id":"a98e7a12-2628-4f3c-b8c4-b6f25178986b","order":"11","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/6\/221.jpg","photo_position":"above","homepage_title":"","full_issue_title":"SAF policies increasing cost of production to USD 4.4 mn","related_issue":[86729],"teaser":"The projected cost of SAF in the EU makes it five times more expensive than traditional fuel","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/6\/.122925fc-7e4e-4dab-a7cc-6eb47c21a69c.mp3"},"yoast_head":"\nSAF policies increasing cost of production to USD 4.4 mn - 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