According to the International Air Transport Association (IATA), sustainable aviation fuel (SAF) production will reach 1.9 million tons (2.4 billion liters) in 2025, double the 1 million tons produced in 2024, Preeti Jain, IATA's Head of Net Zero Research and Programs, said at IATA Global Media Day, Report informs.
However, Jain noted that production volumes will reach 2.4 million tons in 2026.
She stated that SAF production will account for only 0.6% of total global aviation fuel consumption in 2025, increasing to 0.8% in 2026: "Against a backdrop of high prices, this will lead to additional industry costs of $3.6 billion in 2025."
Jain noted that the 2025 production forecast of 1.9 million tons was revised downwards due to insufficient political support needed to fully utilize existing capacity.
"The cost of SAF is currently twice that of traditional jet fuel, and up to five times higher in markets with mandatory requirements.
Particular attention is being paid to the upcoming e-SAF requirements in the UK (from 2028) and the EU (from 2030). E-SAF production already faces significantly higher costs-potentially 12 times higher than fossil fuels. Without effective incentives, e-SAF supplies risk falling significantly short of targets, and compliance costs could rise to €29 billion by 2032," Jain emphasized.
Marie Owens Thomsen, Senior Vice President, Sustainability, and Chief Economist at IATA, noted that current policies are failing to scale up SAF production: "It's clear that current measures are not producing the desired results. Regulators need to adjust their course, ensure the long-term sustainability of SAF production, and create conditions for cost reduction. Mandates have had the opposite effect, and it would be a mistake to repeat the same mistakes with e-SAF requirements."