IATA Reports Slower-than-Expected Growth in Sustainable Aviation Fuel Production

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IATA highlights slower SAF production growth and calls for measures to boost aviation industry decarbonization efforts. Image Credit : traveldailynews

The International Air Transport Association (IATA) recently released updated estimates for Sustainable Aviation Production (SAF). The revised estimates show that the growth of SAF is slower than expected. As per the IATA, the production reached 1 million tonnes in 2024. Although the number reflects twice the increase in SAF produced in 2023 (0.5 million tonnes), it falls short of the expected 1.5 million tonnes earlier predicted.

SAF Production and Global Impact

SAF currently represents just 0.3% of global jet fuel production and 11% of global renewable fuel. The slow growth has raised concerns within the aviation industry. IATA Director General Willie Walsh stressed the importance of for governments to phase out fossil fuel subsidies. He also called for policies that encourage renewable energy production including SAF.

He pointed out that although SAF volumes are growing, the progress is disappointingly slow. He also highlighted that the airline industry is ready to invest in SAF. However, he noted that investors need long term assurances before committing funds.

Also read: Southeast Asia to Supply 12% of Global SAF Demand by 2050, Study Shows

IATA’s Vision for Aviation Decarbonization

IATA stresses that decarbonizing aviation is part of the broader global energy transition. Marie Owens Thomsen, IATA’s Senior Vice President for Sustainability, explained that renewable fuel refineries will produce multiple fuels for various industries. SAF will only account for a small portion of this production.

To meet the net-zero emissions goal by 2050, IATA predicts that 3,000 to 6,500 renewable fuel plants will be required. The plants that will be established will need annual investments of around $128 billion. In comparison to investments required for wind or solar energy, this amount is far less.

Also read: Trump Presidency Poses Challenges for SAF Industry

Key Measures for SAF Expansion

IATA has proposed three key measures to accelerate SAF production:

  1. Increase Co-Processing: Expanding the use of renewable feedstocks at existing refineries could save up to $347 billion by 2050.
  2. Diversify SAF Production: Scaling production using methods like Alcohol-to-Jet and Fischer-Tropsch could boost SAF volumes.
  3. Create a Global SAF Accounting Framework: Establishing a registry would ensure transparent SAF purchases and prevent double-counting.

TES Advances Green Energy Hub in Wilhelmshaven with New CO2 Export Terminal

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TES CO2 export terminal in Wilhelmshaven will help decarbonize industries by connecting CO2 emitters across Europe. Image Credit : TES H2

Tree Energy Solutions (TES), a green energy leader, is making significant progress in advancing its Green Energy Hub in Wilhelmshaven, Germany. TES is developing a liquid CO2 export terminal to support its vision of becoming the world’s leading e-NG producer.

Partnership in Carbon Management

TES has joined the Carbon Management Alliance (CM Alliance), an industrial initiative implementing Carbon Capture, Utilisation, and Storage (CCUS) technologies. The collaboration with the CM Alliance will help drive innovative solutions for carbon management across various industries. This move supports TES’s goal of building infrastructure for efficient carbon management, essential for advancing global decarbonization efforts.

Also read: Serbia Launches Second Renewable Energy Auction to Expand Green Energy Capacity  

CO2 Export Terminal to Support Decarbonization

The CO2 export terminal will receive CO2 captured from industrial emitters, transporting it by rail or pipeline to Wilhelmshaven. The terminal will temporarily store the CO2 before exporting it to storage facilities or shipping it to renewable energy-rich countries.

Developing CO2 export infrastructure is a strategic move for TES, advancing its goal of becoming a key e-NG producer. The terminal will connect CO2 emitters from Germany, France, Switzerland, Austria, and the Czech Republic, enabling emissions transportation efficiently.

Also read: Suzlon Group Secures 1166 MW Wind Energy Contract with NTPC Green Energy Limited

Hugo Dijkgraaf, Chief Operating Officer at TES, said, “The CO2 export terminal will be a key asset for Germany’s industrial decarbonization, connecting CO2 emitters and hard to abate industry clusters across Germany and Europe, initially through existing rail networks. “

He added, “This approach allows emissions to be transported without requiring significant new infrastructure. CO2 from Germany, eastern France, Switzerland, Austria, and the Czech Republic can be delivered to Wilhelmshaven. The project could connect to storage facilities in Norway, Denmark, the Netherlands, and the UK, with the potential to integrate future sites through the flexible ship-based export facility.”

With future expansion plans, the terminal could also connect to storage facilities in Norway, Denmark, the Netherlands, and the UK.