As the air cargo industry seeks to reduce its carbon footprint, Sustainable Aviation Fuel (SAF) has emerged as a promising solution. But what exactly is SAF, and what does it mean for our industry?

SAF is a biofuel used to power aircraft that has similar properties to conventional jet fuel but with a significantly smaller carbon footprint. Unlike conventional jet fuel, which is derived from fossil sources, SAF is produced from sustainable feedstocks such as:

  • Used cooking oil and other waste oil
  • Agricultural residues
  • Forestry waste
  • Municipal solid waste
  • Energy crops
  • Algae

These feedstocks are processed to create a fuel that can be blended with conventional jet fuel, typically up to a 50% blend ratio.

Currently, global SAF production remains limited. In 2022, approximately 80 million liters (21 million gallons) of SAF were produced globally. While this represents a significant increase from previous years, it’s still less than 0.1% of global jet fuel consumption.

The challenges for SAF adoption in the United States are multifaceted:

  • Limited production capacity: Despite ambitious goals, current U.S. SAF production is insufficient to meet demand. The recent delay of Neste’s major SAF refinery in Europe underscores the global nature of this challenge.
  • High costs: SAF is currently 2-4 times more expensive than conventional jet fuel, making widespread adoption economically challenging.
  • Infrastructure and logistics: Integrating SAF into existing fuel supply chains requires significant investment in infrastructure.
  • Feedstock availability: Securing a consistent, sustainable supply of feedstock is crucial for scaling up production.
  • Regulatory environment: While supportive policies are emerging, a comprehensive regulatory framework to incentivize SAF production and use is still evolving.

Despite these challenges, progress is being made. The U.S. government’s SAF Grand Challenge aims to scale up domestic SAF production to 3 billion gallons annually by 2030. Major airlines, including United Airlines here in Chicago, are investing in SAF and forming partnerships to increase its use.

For air freight forwarders, truckers, and cargo operators, understanding these developments is crucial. While many of the IACAC’s members are grappling with truck emissions, renewable energy-powered warehouses and handling equipment and Scope 3 emissions demands from their customers, how and where SAF is produced, deployed and made available over time will have an impact on operational costs, routing decisions, and client relationships for airlines.

While the path to widespread SAF adoption may be complex, it represents a significant opportunity for innovation and leadership in sustainable air cargo operations. As industry professionals, staying informed and proactive about SAF developments will be key to our collective success in this evolving market.