Sustainable aviation gas’s foremost problem pertains to quantity somewhat than airways’ want to make use of it, and shoppers shall be keen to pay the additional prices related to its uptake, the director common of the Worldwide Air Transport Affiliation informed CNBC Friday.

“I believe amount is the primary concern for the time being,” Willie Walsh, who was chatting with “Squawk Field Europe” on Friday morning, mentioned.

“We used about 100 million liters of sustainable aviation gas in 2021 — that is a really small quantity in comparison with the full gas required for the trade.”

Trying forward, Walsh mentioned airways had ordered 14 billion liters of SAF. “I believe that addresses the problem of whether or not airways will purchase the product,” he mentioned.

Walsh famous this was occurring regardless that the value of SAF was “about two and a half occasions the value of jet kerosene. Once you think about the price of carbon, you are possibly … twice the value of kerosene.”

Whereas there seems to be some demand for SAF, assembly it’s one other query solely and its highway to dominance within the sector appears to be like to be an extended one.

With “applicable authorities coverage help,” IATA says it expects to see SAF manufacturing hit 7.9 billion liters by 2025, which might meet simply 2% of the general gas requirement. By the center of the century, the commerce affiliation says manufacturing would bounce to 449 billion liters, or 65% of the sector’s wants.

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The environmental footprint of aviation is appreciable, with the World Wildlife Fund describing it as “one of many fastest-growing sources of the greenhouse gasoline emissions driving world local weather change.” The WWF additionally says air journey is “at present essentially the most carbon intensive exercise a person could make.”

Though the European Union Aviation Security Company says there’s “not a single internationally agreed definition” of sustainable aviation gas, the overarching thought is that it may be used to scale back an plane’s emissions.

When it comes to content material, plane maker Airbus has described sustainable aviation fuels as being “constructed from renewable uncooked materials.” It is acknowledged that the most typical feedstocks “are crops based mostly or used cooking oil and animal fats.”

There are main considerations in some quarters that an elevated uptake of SAF might, amongst different issues, lead to vital deforestation and create a squeeze on crops essential to the manufacturing of meals.

For his half, Walsh mentioned it was “vital” that the trade didn’t use feedstocks which compete with land use or meals manufacturing. “The entire laws in relation to the … long term growth of sustainable aviation fuels will assure that that is not the case.”

With regards to price, Walsh — the previous CEO of Worldwide Airways Group — acknowledged this is able to be one thing handed on to the touring public.

“Sustainable fuels are about twice what you are paying for … the normal jet kerosene, so it does signify a major hike within the airline trade’s price base,” he mentioned.

“And finally, shoppers must pay that, that is far an excessive amount of for the trade to bear.”

Long run, shoppers would acknowledge this is able to be the case. “That is such an necessary concern. In the end, they are going to be keen to pay,” he added.


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