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July 20, 2021updated 22 Jul 2022 12:13pm

Aviation sector bets on SAF to reduce carbon emissions

SAF provides a sustainable solution for reducing carbon dioxide emissions in the aviation industry, with more companies trying to go carbon-neutral.

By GlobalData Energy

The global aviation sector, like other sectors worldwide, is focusing on developing innovative solutions to limit its carbon footprint. The aviation sector today is relying greatly on sustainable aviation fuel (SAF) as an alternative to reduce carbon emissions. According to the Air Transport Action Group (ATAG), the global aviation industry presently accounts for about 2% of all human-induced carbon dioxide emissions and SAF has emerged as one of the viable solutions to curb emissions. SAF is derived from renewable sources, unlike conventional aviation fuel that is produced from crude oil, a non-renewable fossil source. It is derived from a wide variety of feedstocks such as municipal solid waste, cellulosic waste, used cooking oil, camelina, etc., and is relatively purer when compared to conventional jet fuel, which results in less particulate emissions and sulfur dioxide.

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How are oil and gas companies strategizing in response to the electric vehicle market?

Electric mobility is a crucial element of the successful energy transition. Electric vehicles (EVs) are expected to account for over one-third of the new car sales worldwide by 2031, and so oil and gas companies are reacting with heavy investments across the EV value chain. Such investments are being made in a bid to remain relevant within this exciting segment.  GlobalData’s free report, Oil & Gas Sector Strategies in Electric Vehicles, reveals that transportation accounts for almost half of the petroleum products demand. However, the wider adoption of electric vehicles could slow the pace of petroleum products demand in the future.   Our report includes:  
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by GlobalData
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As a result of the growing importance of SAF, some of the leading oil and gas companies are focusing on the production and supply of SAF to airlines. Companies such as BP and Shell have collaborated with SAF producers to enhance the supply of SAF to different airline customers while TotalEnergies and Eni SpA are producing SAF. Pure-play renewable fuel production companies such as Fulcrum Bioenergy and SkyNRG are also producing SAF.

Though global production of SAF is insignificant at present, it is expected to take off in the future considering the efforts of several oil and gas companies to become carbon neutral. Conversion of crude oil refineries to complete renewable fuel plants or co-processing plants and construction of new renewable fuel facilities are gaining momentum and are expected to accelerate SAF production in the future.

Global demand for SAF is expected to receive a boost on account of initiatives undertaken by several countries globally to meet their goals of reducing GHG emissions, especially North American and European countries. The UK Government has undertaken a Jet Zero plan that aims to reduce carbon emissions from transatlantic flights to zero by 2050. In line with its Jet Zero plan, the UK Government has funded Velocys, a producer of aviation biofuels, for the development of a commercial scale SAF production facility in Immingham, UK.

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Free Report
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How are oil and gas companies strategizing in response to the electric vehicle market?

Electric mobility is a crucial element of the successful energy transition. Electric vehicles (EVs) are expected to account for over one-third of the new car sales worldwide by 2031, and so oil and gas companies are reacting with heavy investments across the EV value chain. Such investments are being made in a bid to remain relevant within this exciting segment.  GlobalData’s free report, Oil & Gas Sector Strategies in Electric Vehicles, reveals that transportation accounts for almost half of the petroleum products demand. However, the wider adoption of electric vehicles could slow the pace of petroleum products demand in the future.   Our report includes:  
  • Petroleum products demand forecast till 2026 by sector 
  • Potential targeted areas for oil & gas companies to enter the EV value chain 
  • EV strategies of oil & gas companies across major regions in the world 
Use this report to help navigate a new frontier for the oil & gas industry.  
by GlobalData
Enter your details here to receive your free Report.

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