- Introduction: Sustainable Aviation Fuels: A 30,000 Foot Perspective
- 1: Overview of the Current Aviation Landscape
- 2: Advancements in Aircraft Technology and Operations
- 3: The Role of Sustainable Aviation Fuels
- 4: Developing Electricity Grids
- 5: Regulatory and Policy Frameworks
- 6: Addressing Economic Challenges in SAF Adoption
- 7: Concluding Remarks
- 8: Appendices
- 9: Abbreviations
- 10: Bibliography
SAF PATH PROMOTION
Download the Report in PDF
Gain key insights into the future of Sustainable Aviation and SAFs. Get a comprehensive analysis of industry trends, regulations, and economic challenges.

Stay informed with expert insights. Your email will only be used for this download and relevant updates. You may unsubscribe at any time.
The significant price difference between SAFs and conventional jet fuels poses a financial challenge for airlines aiming to reduce emissions. Higher SAF costs are due to elevated production expenses, limited supply, and the developmental stage of SAF technologies. Overcoming this requires increasing production for economies of scale, technological advancements, and regulatory measures to make SAFs financially competitive. Collaboration between the aviation industry and government bodies is essential. This chapter explores economic barriers and strategies to integrate SAFs while maintaining financial stability and promoting sustainability.
A major hurdle in this transition is the significant price difference between SAFs and conventional jet fuels, which presents a dilemma for airlines striving to reduce carbon emissions without undermining their financial health.
The higher market price of SAFs is attributed to a confluence of factors. Elevated production costs, limited supply due to the emerging nature of the SAF market, and the current developmental stage of SAF technologies all contribute to this price discrepancy. This situation poses a substantial challenge for airlines, as the cost of purchasing SAFs in the volumes needed for significant emission reduction can be financially daunting.
To bridge this price gap, a multi-faceted approach is essential. Increasing SAF production could lead to reduced costs through economies of scale. Advancements in technology are needed to make SAF production more cost-effective. Additionally, regulatory measures could be implemented to make SAFs more financially competitive. Collaboration between the aviation industry and government bodies is crucial in this endeavor, ensuring a balanced distribution of costs and benefits associated with SAF adoption.
Overall, this chapter aims to dissect these economic barriers and propose potential strategies for overcoming them. It underscores the importance of collaborative efforts and strategic initiatives necessary to integrate SAFs into the aviation sector while maintaining financial stability and promoting environmental sustainability.
Key Insights:
- The cost of SAFs, typically 2-4 times higher than conventional jet fuel, exerts a significant financial burden on airline operations.
- SAF production, still in its developmental phase, primarily relies on costly, high-demand feedstocks like HEFA, restricting supply and elevating prices.
- Emerging technologies in SAF production hold the promise of diversifying feedstock options and scaling up capacity, potentially reducing costs and fostering broader adoption.
- Despite recent price increases for both SAFs and conventional jet fuels, the narrowing cost gap signals a slow but steady shift towards a more economically feasible SAF landscape.
- SAF production volumes lag far behind those of conventional jet fuels, underscoring the necessity for a significant increase in SAF production capabilities to achieve sustainability targets.
- Satisfying future jet fuel demand with SAFs would necessitate a dramatic expansion in production infrastructure, requiring a considerable number of new facilities based on current outputs.
In summary, this chapter outlines the economic challenges hindering SAF adoption in aviation and explores potential solutions and collaborative efforts required to harmonize the industry’s growth with environmental sustainability goals. It demonstrates the need for strategic and concerted action to overcome these economic barriers and facilitate the widespread integration of SAFs into the aviation sector.