Fragmented SAF market struggles for scale
Multiple production routes and regional policy differences hamper nascent sector’s ability to attract investment
The emerging sustainable aviation fuel (SAF) industry is struggling with a patchwork of disparate geographical markets, government policies and production methods—a level of fragmentation that will need to be resolved before investment and demand can scale up, according to aviation and SAF industry executives. SAF is seen as a credible route for decarbonising airline emissions in the short and medium term, as more technologically ambitious alternatives, such as hydrogen and batteries, remain years if not decades away. But SAF makes up less than 1% of the 100b gal of jet fuel consumed by global aviation annually, with North America the biggest market. “It is a highly fragmented market,
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