WEF Report Studies How to Meet SAF Investment and Production Goals by 2030 Carbon-free Targets
A recent report issued by the World Economic Forum in collaboration with McKinsey & Company suggests that SAF production costs must be lower, in order for the SAF industry to meet its lower carbon targets called for in 2030. The report adds that it’s important for SAF producers, investors, and airlines to come together on “innovative regulatory mechanisms and clear demand signals.”
The report, titled “Clean Skies for Tomorrow (download at the link) Sustainable Aviation Fuels as a Pathway to Net-Zero Aviation”, notes that the most immediate action to achieve carbon-neutral flying is “…the investment in, and rapid scale-up, of sustainable aviation fuel production and use.” We agree, and that’s where our efforts have been focused on all throughout 2020. We’re now ready for exciting progress in 2021.
Other highlights and detailed information from the report are noted below:
- The report also reaffirms the SAF is the only real near-term solution to mitigate commercial aviation emissions.
- The WEF report provides an in-depth analysis of each SAF technological pathway and its cost components (Feedstock, CAPEX, OPEX), along with current status and future developments impacting SAF production in 2050.
- Current SAF production costs vary significantly by pathways (HEFA, Gasification/FT, Alcohol to Jet, Power to Liquid). And by 2050, Power to Liquid (renewable electricity and green hydrogen) will be the lowest cost SAF relative to the other three pathways, with significant cost reductions of solar electricity and green hydrogen starting in the 2040s.
- Current SAF from woody biomass projects remains in-development and under the radar.
The report concludes by trumpeting an urgent call to the investment community to get behind SAF producers. “Together with the aviation industry, investors and lenders must design a blueprint for financing the transition that may include lending guidelines, investment principles, R&D, and both equity and debt finance. This will help forge global collaboration among stakeholders to provide transition financing, mobilize capital, and reduce the risks of investment.”
If you’re at all interested in SAF and the airline industry, this is a “must-read” report. We’re excited about the future of SAF!
Let’s make 2021 a great year for SAF!