Boeing Criticizes Oil Companies for Lack of Support in Sustainable Jet Fuel Production
US plane maker Boeing has criticized the world’s largest oil companies for their lack of effort in producing sustainable jet fuel, as frustration within the aviation industry grows over the limited supply.
Sustainable aviation fuel (SAF), made from waste oils and agricultural feedstock, has the potential to reduce carbon emissions from air travel by up to 80 percent. However, the global supply of SAF only meets 1 percent of the aviation industry’s demand. To achieve carbon neutrality by 2050, a significant increase in SAF production is crucial.
Robert Boyd, Boeing’s head of sustainability for the Asia-Pacific region, emphasized the need for major oil producers to support SAF production. He noted that smaller green fuel producers are ahead in developing SAF than larger companies like Exxon Mobil.
Insufficient SAF supply has been a major topic at the Singapore Airshow, and increasing supply is essential to make it more affordable. While conventional jet fuel is a significant cost for airlines, SAF can be up to five times more expensive.
The International Air Transport Association estimates that achieving net-zero emissions in aviation will require up to $5 trillion by 2050, with a significant amount allocated to sustainable fuel production. Willie Walsh, chief of the International Air Transport Association, urged oil producers to prioritize low-emissions aviation fuel production, as the industry sees reaching net-zero emissions as crucial.
Exxon Mobil’s vice president for Asia-Pacific fuels, Ong Shwu Hoon, stated the company’s focus on producing low-emissions fuel for aviation and the need for more investment in the SAF supply chain. Haldane Dodd, executive director of the Air Transport Action Group, believes major oil producers can do more to support SAF production, citing their resources and expertise for meeting the demand for sustainable aviation fuel.
Analyst comment
Positive news. The market for sustainable aviation fuel (SAF) is expected to see significant growth as Boeing criticizes oil companies and calls for increased support for SAF production. The limited supply of SAF creates an opportunity for smaller green fuel producers to thrive. Increasing SAF supply is crucial for achieving carbon neutrality in aviation by 2050. The transition to net-zero emissions in aviation is considered essential, and significant investments, estimated at up to $5 trillion by 2050, will be required. Oil producers are urged to prioritize low-emissions fuel production to meet the growing demand for SAF.
