We have just wrapped up our third finance briefing this year, part of a series of discussions with banks and financial institutions that ATAG and BloombergNEF have been hosting to explore the financing requirements of scaling up sustainable aviation fuel (SAF). Here in Singapore, we welcomed our newest member—SAF producer Neste—one of a growing number of SAF pioneers joining ATAG in recent months.
SAF has immense potential to reduce emissions by up to 80% across its lifecycle compared to conventional jet fuel. But turning that potential into reality is not easy. It is a long, challenging road to secure financing, develop and scale new technologies, and build production plants.
The sector’s progress hasn’t come from the sources you might expect. It has often been lesser-known names such as Gevo, LanzaJet, Neste, SAF One, SkyNRG, and World Energy who have been doing the heavy lifting. They are moving the needle in a way that we haven’t seen from the traditional players, and they are doing it with a fraction of the resources, building the SAF industry from the ground up, fuelled by a commitment to support aviation’s path to net-zero.
Fuel production is not an easy industry to break into. It requires immense resources, innovative thinking, and the willingness to invest for the long haul. In many ways, what these companies are achieving for the scale-up of SAF production resembles a grassroots movement. They prove that you don’t need to be a giant to drive industry change, you just need a passion for innovation and a true commitment.
These companies and a number of other new entrant players are really doing some impressive work, and this is an exciting space to witness. Earlier this week at the SAFS Congress in Singapore, the progress was really on display. From what was a niche discussion in 2008 to a sector with some real momentum today. It’s been a fulfilling journey.
Net zero by 2050 is an ambitious goal, but it is achievable if we continue to invest in SAF and if everyone is on board for this transition. With projected demand of around 20 million tonnes by 2030, we know there is a significant market for SAF. As more companies join these efforts, that capacity could well reach that 20 million tonnes threshold... or maybe even go further. But that production is not guaranteed. To get there, we need collaboration, resources, and a shared vision.
For me, these SAF companies represent more than just fuel production; they are doing the groundwork to reshape an entire sector. And together, with the support of governments, the finance industry, and our partners across the air transport value chain – including energy providers – I believe we can get well and truly on the path towards net-zero carbon.