Sustainable Aviation Fuel: The Next Frontier for Clean Energy

Aviation is one of the most challenging sectors to decarbonise. Unlike road transport — where battery electric vehicles are rapidly gaining market share — commercial aviation cannot simply switch to a different energy carrier. The energy density requirements of long-haul flight are simply too demanding for current battery technology, and hydrogen-powered aircraft remain decades away from commercial deployment at scale.

This makes sustainable aviation fuel (SAF) the most promising near-term pathway for reducing aviation's carbon footprint. But scaling SAF production to meet even a fraction of global aviation fuel demand is a formidable challenge.

What Is Sustainable Aviation Fuel?

SAF is a broad category of aviation fuels produced from non-fossil feedstocks. Unlike conventional jet fuel (Jet A-1), which is derived from crude oil, SAF can be produced from a range of feedstocks including:

• Used cooking oil and animal fats (hydroprocessed esters and fatty acids, or HEFA — currently the most commercially mature pathway)
• Agricultural and forestry residues (via gasification and Fischer-Tropsch synthesis, or fermentation to alcohols)
• Municipal solid waste (via gasification or pyrolysis)
• CO₂ and green hydrogen (power-to-liquid, or e-fuels — the most promising long-term pathway but currently the most expensive)

SAF produced through certified pathways can reduce lifecycle CO₂ emissions by 50 to 80% compared to conventional jet fuel. It is fully compatible with existing aircraft engines and fuel infrastructure — it can be blended with conventional jet fuel and used without any modifications to aircraft or airports.

The Regulatory Push

Governments and regulators are increasingly mandating SAF use to drive decarbonisation of the aviation sector:

European Union: The ReFuelEU Aviation regulation requires SAF blending mandates starting at 2% in 2025, rising to 6% in 2030, 20% in 2035, and 70% in 2050.

United Kingdom: The UK SAF mandate requires 10% SAF by 2030 and 22% by 2040.

United States: The Inflation Reduction Act includes significant tax credits for SAF production, creating strong financial incentives for investment in SAF facilities.

These mandates are creating a guaranteed demand signal that is attracting investment in SAF production capacity — but supply is still far short of what mandates will require.

The Supply Gap

Current global SAF production capacity is approximately 1 million tonnes per year — less than 0.5% of global aviation fuel demand of approximately 300 million tonnes per year. Even with the significant investment currently being made in new SAF facilities, most analysts project that supply will fall well short of mandate requirements through the late 2020s.

The supply gap is particularly acute for the most sustainable SAF pathways. HEFA — the dominant current technology — is constrained by limited feedstock availability. Used cooking oil and animal fats are already in high demand for road transport biofuels, and expanding HEFA production significantly would require competing for feedstocks with other sectors.

Scaling up the more advanced pathways — gasification, power-to-liquid — requires significant technology development and capital investment. These pathways are not yet commercially mature, and the timeline for achieving cost-competitive production at scale remains uncertain.

Implications for Petroleum Trading

For petroleum trading companies, SAF represents a significant emerging market opportunity. The supply chain for SAF — feedstock procurement, processing, blending, certification, and distribution — requires many of the same capabilities as conventional jet fuel trading: quality assurance, logistics management, documentation, and counterparty relationships.

Companies with existing expertise in jet fuel trading and distribution are well-positioned to extend their capabilities into SAF. The key investments required are in feedstock sourcing relationships, certification knowledge, and blending infrastructure.

Traduco's Perspective

Traduco is a significant supplier of conventional jet fuel (Jet A-1) to clients across Africa and Europe. We are actively monitoring the development of SAF markets and engaging with clients on their transition planning.

We see SAF as a growing component of our product portfolio over the coming decade — initially as a blending component in conventional jet fuel supply, and eventually as a standalone product for clients with specific sustainability requirements or regulatory obligations.

The transition to SAF will be gradual and market-driven, with conventional jet fuel remaining the dominant aviation fuel for many years. Our role is to help our clients navigate that transition — providing reliable supply of both conventional and sustainable aviation fuels as the market evolves.

Conclusion

Sustainable aviation fuel is not a niche product or a distant aspiration. It is a rapidly growing market, driven by regulatory mandates, airline sustainability commitments, and passenger demand for lower-carbon travel. The companies that invest in SAF supply chain capabilities today will be well-positioned to serve this market as it scales. The challenge is significant — but so is the opportunity.