Why governments support choose sustainable aviation fuel
Since SkyNRG supplied the first commercial sustainable aviation fuel (SAF) flight in 2011, we see increased government support on a national, European and global level to build this industry. This government involvement is crucial as high price premiums, partly caused by an unlevel playing field with the mandated road transport sector (in the EU and USA), have been the biggest challenge that limited the uptake of SAF to date. Currently we cover part of the premium with innovative co-funding mechanisms where we cooperate with airlines, companies and airports. But to compete with fossil fuels and build this new industry, government incentives (that take into account the global competition aspect of the airline industry) are necessary. The fact that governments worldwide now realize that they can and must play an important role in providing the right instruments for the aviation industry to level the price difference between SAF and fossil fuels, is essential. To learn more about how SAF can make the aviation industry more sustainable, please visit the page where we explain the rationale for SAF or our FAQ-page.
Benefits for governments & their region
Policy-makers globally, choose to support the development of an industry for sustainable aviation fuels (SAF) because the use of this product can offer many benefits for a region:
- Employment & regional development: A medium to long-term benefit of building a market for SAF is that it can stimulate economic activity in the region. A regional supply chain for SAF aggregates demand and creates a reliable market pull that can attract investment to fund new business activities that result in job creation, industry development, land-use and research & development.
- Increased energy security: Many countries depend on imported jet fuel. Locally produced SAF can increase a region’s energy security.
- Increased country competitiveness: The development of a market for SAF can contribute to (inter)national climate goals as SkyNRG’s SAF has a CO2 emission reduction potential of 80%, compared to fossil jet fuel) and stimulates involvement of local stakeholders (farmers, industry, knowledge institutes & NGOs).
- Improved local air quality: In addition to CO2 reduction, SAF use reduces emissions from particulate matter (PM) with up to 90% and sulphur emissions (SOx) with 100%, compared to fossil jet fuel.
- Increased price stability: Regionally produced SAF can increase the stability of jet fuel supply and price in the region because there’s less dependency on the products refined by fossil crude refineries that are more sensitive for price fluctuations.
To build an industry for sustainable aviation fuel (SAF), government involvement is crucial. In general we team up with governments in the areas below. If you want to find out how we can work together to make the aviation industry more sustainable, please contact us at firstname.lastname@example.org.
- BioPort development: A BioPort is a regional supply chain for SAF. This regional approach ensures that the benefits can go well beyond carbon reduction. We see energy security, reduced price volatility, (potential) development of local communities and rural areas, adding value to (marginal) lands and economic growth as main drivers to engage a broader group of stakeholders (e.g. governments, farmers, investors, NGOs). A successful example of a regional supply chain is BioPort Holland, an initiative that involves, among other players, the Dutch government.
- Industry knowledge: As global market leader we have in-depth knowledge about the market for SAF and the complex players within this industry.
- Knowledge about incentives: We are supporting and working with various governments (and their respective aviation and energy/industry representatives) to detail out the right types of support structures needed to scale the SAF industry on a local/national level.
- Guaranteed sustainability: SkyNRG has its operations RSB certified and is structurally advised by an independent Sustainability Board.
- Let your government staff fly sustainable: As a frontrunner, the Dutch Ministry of Infrastructure & Environment joined the KLM Corporate BioFuel Programme in October 2016. In doing so, part of their staff flies on SAF and reduces their footprint from business travel.