What is the Future of Sustainable Aviation Fuel Production?

Sustainable aviation fuel (SAF) is at the forefront of efforts to reduce emissions in the aviation industry.

Airlines and governments increasingly focus on SAF as a cornerstone of decarbonising air travel, yet production and distribution challenges continue to slow its widespread adoption.

To make SAF a practical solution, the industry needs to address hurdles in scalability, policy support and supply chain resilience.

The rising demand for SAF

SAF is derived from renewable sources such as waste oils, agricultural residues or even carbon capture processes.

Unlike traditional fossil-based jet fuel, SAF can reduce lifecycle emissions by up to 80%, making it a critical component of aviation’s net-zero aspirations. Airlines worldwide are keen to adopt SAF, but scaling up production remains a steep challenge.

Production facilities are limited, and many rely on feedstocks that are themselves constrained by availability and cost. Current SAF production accounts for only a fraction of the aviation sector’s annual fuel demand.

Supply chains for SAF feedstocks are another bottleneck, as ensuring a steady supply of raw materials requires careful coordination across agriculture, waste management and chemical processing industries. This interdependence demands robust logistics networks that can handle the complexities of SAF production at scale.

“We need the whole world to produce as much renewable energy as possible for everybody. Airlines simply want to access their fair share of that output," says Marie Owens Thomsen, IATA’s Senior Vice President of Sustainability and Chief Economist.

Policy and industry collaboration

Regulatory frameworks play a significant role in driving SAF adoption. Governments in regions such as Europe and North America are introducing mandates to blend SAF with traditional jet fuels, pushing the market towards higher production volumes.

However, these efforts need global alignment. The International Air Transport Association (IATA) aims to see two-thirds of airline fuel come from SAF by 2050, but this goal requires both policy consistency and significant financial investment.

Collaborations across the aviation sector are equally vital. Partnerships between airlines, fuel producers and technology companies are emerging to address shared obstacles.

For example, major airlines have committed to purchasing SAF in bulk, incentivising producers to scale up. However, even with such partnerships, producers need funding for infrastructure, feedstock sourcing, and innovation to make SAF a commercially viable alternative to fossil fuels.

A key concern is ensuring that SAF production doesn’t divert critical resources away from other industries or lead to unsustainable agricultural practices.

The supply chain must be carefully managed to maintain a balance between increasing SAF output and avoiding unintended environmental or social consequences.

“Governments must quickly deliver concrete policy incentives to rapidly accelerate renewable energy production," adds Willie Walsh, Director General at IATA

"The good news is that the energy transition, which includes SAF, will need less than half the annual investments that realising wind and solar production at scale required," he continues. "And a good portion of the needed funding could be realised by redirecting a portion of the retrograde subsidies that governments give to the fossil fuel industry.”

Overcoming production and distribution barriers

One of the primary issues lies in the cost of SAF, which is significantly higher than conventional jet fuel. Scaling production to meet demand will help bring costs down, but this requires long-term investment in refining and manufacturing infrastructure.

In the meantime, governments and financial institutions can offer incentives to bridge the price gap, ensuring SAF remains a feasible option for airlines.

Distribution networks also need to adapt. Most SAF is currently produced in limited regions, requiring sophisticated logistics to transport fuel to major aviation hubs. Establishing decentralised production facilities closer to airports can help minimise transportation challenges.

Improving supply chain resilience is equally critical. This includes securing diverse feedstock sources, streamlining logistics and integrating new technologies that optimise production and reduce costs.

Innovations such as blockchain could help track SAF supply chains, ensuring transparency and efficiency in sourcing and delivery.

A collaborative path forward

While the potential of SAF is clear, its success depends on coordinated action. Policy alignment, industry investment and supply chain innovation must work hand in hand to overcome the barriers holding SAF back.

Governments, airlines and producers need to focus on creating a comprehensive ecosystem that supports long-term sustainability without sacrificing affordability or scalability.

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