This CNBC report explores the promise and challenges of sustainable aviation fuel (SAF), following United Airlines and waste-to-fuel startup Fulcrum BioEnergy as they work to scale an industry still in its infancy.
Key insights:
SAF currently represents less than 0.1% of United Airlines’ total fuel consumption despite the airline having a net-zero 2050 target, illustrating the enormous scale-up challenge ahead.
Fulcrum BioEnergy converts 350,000 tons of municipal solid waste annually into synthetic crude via a three-stage gasification and Fischer-Tropsch process, claiming zero net carbon impact.
Today’s SAF market relies primarily on used cooking oil and animal fats, but global supply of these feedstocks could cover only around 5% of jet fuel demand, making second-generation feedstocks like trash, forest residue, and ethanol essential.
SAF costs two to four times more than conventional jet fuel, though the US Inflation Reduction Act’s $800 million in funding and dedicated tax credits are helping close the gap.
And with 25 US refineries planned or open and the Biden Administration targeting 3 billion gallons of annual SAF production by 2030, the sector is gaining serious momentum despite still being far from the scale aviation requires.