Sustainable Aviation Fuel Challenges

Aviation is one of the most carbon-intensive sectors. One potential solution to this challenge is sustainable aviation fuel (SAF), which adds nonpetroleum components such as cooking oils to a fossil-fuel base to maintain compatibility with existing infrastructure (contributing to concerns over greenwashing). Supply, however, is far outpacing potential demand; in 2024, estimated SAF production equaled only 0.53 percent of aviation fuel needs. As a result, some airlines that had set ambitious climate targets are now reconsidering them.

SAF companies continue to attract investments, however, and some airports are being touted as SAF hubs. The anticipated growth of the industry will likely have downstream effects. Some states, including Kansas and Illinois, are looking to construct SAF factories, as are countries abroad. With these comes marginal job growth. Planning may be required to accommodate the expansion of this industry, particularly for agricultural states that may be tapped for fuel production.