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by 2050. SAF should cater for 2% ReFuelEU mandate, which
around 65% of the emission roughly equates to 1 million tons
2030 should be 5% less carbon “ Q The European Union (EU)
of SAF.
reduction needed to get to net
zero. Additionally, ICAO has
Regions and countries in the
set a goal that aviation fuel in
world are adopting different
at EU airports must contain a
intensive than fossil fuel, to be approaches to stimulate SAF has mandated that fuel uplifted
demand. These can all play
achieved through a transition to an important role in ramp- minimum percentage of SAF
SAF. ing-up SAF production, but starting in 2025. Some gov-
in the end, the most sustain- ernments have introduced
Q SAF volumes doubled last able mechanism would be incentives to drive SAF produc-
year, reaching over 600 million to have the polluter pay for tion. Mandates or incentives;
litres, compared to 300 million their emissions.” what would be your choice?
litres in 2022. However, SAF
accounted for only 3% of all Supporting policies play a cru-
renewable fuels produced. Do production increases exponen- cial role as these can create
you see the situation changing tially going forward? the demand certainty needed
in the near-term? to attract investments into new
As mentioned above, we need production capacity as well as
SAF production is ramping-up to accelerate SAF production support airlines adopting SAF
globally. In 2022, Neste’s SAF and supporting policies play a in their operations. Regions
production capacity was 100,000 crucial role as these can create and countries in the world are
tons. In 2024, this will be 1.5 the demand certainty needed adopting different approaches to
million tons, a 15-fold increase. to attract investments into new stimulate SAF demand. These
The reality is that we have a production capacity as well can all play an important role in
long way to go and it requires as support airlines adopting ramping-up SAF production, but
cooperation across the aviation SAF in their operations. We in the end, the most sustainable
ecosystem to accelerate SAF do see encouraging develop- mechanism would be to have
production. ments, for example with the the polluter pay for their emis-
European Union’s ReFuelEU sions. For example, mandates
Q SAF production is set to triple Aviation Regulation mandating for road fuel have proven to work
this year compared to 2023, SAF usage starting with 2% in to accelerate biofuel use and
but according to IATA, the SAF 2025, similar to the UK’s 2% biofuel is now a standard part of
produced would account for SAF target. Neste alone would road fuels in many regions and
just 0.53 percent of aviation’s hypothetically be able to supply countries.
fuel need in 2024. What can the SAF needed to cover the
aviation do to ensure that SAF Q SAF is significantly more
expensive than traditional jet
fuel. As demand for SAF grows,
do you see cost coming down?
What steps can the industry
take to reduce costs?
SAF is typically 3 to 5 times
more expensive than fossil jet
fuel depending on where the
fossil fuel prices are at any time.
However, the cost of carbon
emissions and climate impact
is currently not included in the
fossil jet fuel price. The cost
of SAF is expected to come
down over time, as production
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