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. Government involvement is crucial, as the significant price premium – partly caused by an unlevel playing field with the mandated road transport sector – has 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 support is 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.
Policy-makers around the world are looking into supporting the development of an industry for sustainable aviation fuels (SAF), because it offer many benefits to a region:
1. CO2 reduction
SAF can achieve up to 85% CO2 emissions reduction compared to conventional jet fuel and contribute to climate goals.
2. Improved air quality
SAF can reduce emissions from particulate matter (PM) with up to 90% and sulphur (SOX) with 100%, compared to conventional jet fuel. Both impact local air quality.
3. Economic development
A longer-term benefit of building a market for SAF is that it can stimulate economic development. A supply chain for SAF aggregates demand and creates a reliable market pull that can attract investment to fund new business activities, resulting in innovation, land-use development and job creation.
4. Increased energy security
Many countries depend on imported jet fuel. Locally produced SAF can increase a region’s energy security.
5. 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.
SkyNRG collaborates with governments on multiple levels:
1. Supply chain development
The benefits of building a regional SAF supply chain can go well beyond carbon reduction. We see energy security, reduced price volatility, development of local communities, adding value to (marginal) lands and economic growth as main drivers to engage a broader group of stakeholders (e.g. governments, farmers, investors, NGOs).
As global market leader we have in-depth knowledge about the market for SAF, its complexities and the main (and minor) players in this industry. 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.
3. SAF supply
Let your government staff fly sustainably. 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.
If you want to find out how we can work together to make the aviation industry more sustainable, please contact Karlijn.