Exxon, an integrated oil and gas company, delivered the first sustainable aviation fuel (SAF) cargo to Changi Airport in Singapore. The shipment was part of a one-year pilot program launched by the Civil Aviation Authority of Singapore to evaluate the new fuel for airplanes. To reduce its greenhouse gas (GHG) emissions, the company intends to shift from conventional aviation fuels to sustainable aviation fuels. Exxon plans to provide more than 40,000 barrels per day of lower-emission fuels, including sustainable aviation fuel, by 2025, and increase it to 200,000 barrels per day by 2030.
Sustainable Aviation Fuel – A Greener Alternative
Unlike conventional aviation fuel derived from fossils, aviation fuel derived from renewable sources can be termed ‘sustainable aviation fuel’. SAF is derived from a variety of feedstock such as municipal solid waste, cellulosic waste, used cooking oil, and camelina. To make SAF suitable to aircraft, it is blended into conventional jet fuel. SAF is relatively pure when compared with conventional jet fuel, and results in less particulate emissions and sulfur dioxide. SAF, owing to its capability to replace more carbon-intensive fossil fuels, could enable the aviation sector to reduce its carbon footprint.
Regulatory Environment
As countries make efforts to reduce their GHG emissions, regulations and initiatives that focus on SAF increased. The UK government took up a Jet Zero plan that intends to reduce carbon emissions from transatlantic flights to zero by 2050. ReFuelEU Aviation, a European Commission initiative to enhance the supply of and demand for SAF in the EU, will lead to a reduction in environmental footprint of aviation and support the EU’s climate target. The Sustainable Aviation Fuel Act introduced by the US incorporates a 35% GHG emission reduction goal by 2035 for the aviation industry in the US. The bill focuses on the development, distribution, and adoption of SAFs, which will facilitate reduction in GHG emissions by up to 80% over the fuel life cycle.
Outlook
The production of renewable fuel is yet to take off despite production starting nearly a decade ago. This could change owing to the efforts of governments and companies to become carbon-neutral in the future. The outlook for SAF looks promising. However, increasing costs of feedstock and storage and transport of renewable fuel could prove to be formidable hurdles for refiners turning to renewable fuels or operators planning to construct renewable fuel facilities.
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