– Boeing plans to purchase and use sustainable aviation fuels (SAFs) despite the green premium to signal demand to the market
– SAFs are unlikely to reach price parity with traditional jet fuel, raising concerns about emission reduction effectiveness in the aviation industry
– The Biden administration is expected to release a preliminary climate model for its SAF subsidy program, which may be more restrictive than expected by the corn-based ethanol industry
Boeing is taking steps towards sustainability by purchasing and using sustainable aviation fuels (SAFs) despite the higher cost compared to traditional Jet A fuel. SAFs are made from food waste and plants, and governments are encouraging their use to reduce emissions in the aviation industry. The EU, for example, has a policy requiring aircraft to use at least 2% SAF in their fuel mix by 2025.
Boeing’s chief sustainability officer, Brian Moran, acknowledges that SAFs may never reach price parity with Jet A fuel but believes that scaling up production can help bring down costs. Boeing recently made its largest purchase of blended SAF, signaling demand to the market. Despite the higher price of SAF compared to Jet A fuel, Boeing is willing to pay the “green premium” to support sustainability efforts.
The Biden administration is expected to release a climate model for a SAF subsidy program in the coming weeks to address cost challenges. However, the program may be more restrictive than anticipated, requiring specific sustainable agriculture techniques for feedstock qualification. Power Technology is covering the 26th World Energy Congress and offers insights into industry trends and developments. Contact reporter Alfie Shaw for interviews and updates from the event.