• Sustainability
  • Decarbonization
  • Policy and Regulation
  • COVID-19
  • Clean Transportation

Aviation Industry Invests in Sustainable Fuel

Mar 05, 2021

Guidehouse Insights

Buoyed by globalization and a rising middle class, global air travel has experienced phenomenal growth. COVID-19-related impacts—which reduced global passenger numbers by 60%—underscore how rapid this growth has been. In 2020, air traffic collapsed to levels not seen since 2003. The multi-decade growth in air travel comes with an environmental impact. According to the Air Transport Action Group (ATAG), worldwide flights produced 915 million tons of CO2 in 2019—around 2% of all human-induced CO2 emissions and 12% of all CO2 emissions from transport. 

As an industry, ATAG set an ambitious goal of halving net total CO2 emissions by 2050. Accomplishing this goal will require significantly expanding the use of sustainable aviation fuel—a term applied in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) that includes biofuels, renewable synthetic fuels, and low carbon fuels. Phasing out traditional jet fuel in favor of biofuel will likely be a crucial part of meeting this goal. Right now, biofuels produced from virgin oils and wastes (HEFA-SPK) are the only commercially available sustainable aviation fuels and will remain so until about 2030. In the longer term, advanced biofuels (FT-SPK) and synthetic fuels will likely play an increasing role.

In 2016, the International Civil Aviation Organization adopted CORSIA to address CO2 emissions from international aviation. Beginning on January 1, 2021, airlines flying to or from participating countries are now subject to offsetting obligations. To meet these obligations, airlines will be required to finance a reduction in emissions elsewhere or use CORSIA eligible fuels

A More Sustainable Flight Path

On January 22, Boeing announced plans to begin delivering airplanes capable of flying using 100% biofuel by 2030. On February 9, British Airways announced plans to fly transatlantic flights partially fueled by sustainable aviation fuel as soon as 2022, and on February 8, KLM completed the first passenger flight with sustainable synthetic kerosene. These announcements signal the aviation industry’s growing belief in the importance of biofuels in reducing carbon emissions.

Currently, biofuels are used in a 50:50 blend with conventional jet fuel. A 2017 study on the benefit of using blended versus conventional jet fuel revealed that biofuel blending can reduce particle emissions by 50%-70%. As such, there is reason to be optimistic about investment in aircraft capable of burning 100% sustainable fuel.

Regulation currently limits the maximum percentage of biofuel in these blends to 50%; however, flying on 100% biofuel may be permitted in the near future. When the time comes to accelerate the use of biofuels, it is important that commercial airplanes are able to burn 100% biofuel.

Biofuel Can Help the Aviation Industry Meet Emissions Targets

Decarbonization targets will likely be a key driver for biofuel over the next decade. Declines in the consumption of liquid fuel, rising oil prices, and favorable regulation such as the Renewable Fuel Standard and California’s Low Carbon Fuel Standard will support growth in biofuel consumption.

Questions remain about the net benefit of biofuels, namely whether their carbon reduction is offset by their production. To ensure the benefit of biofuels, the International Air Transport Association has defined sustainable fuel as biofuel that does not divert land from food production, clear forests, or consume too much freshwater. 

Sustainable aviation fuels, including biofuels, provide the primary pathway for the aviation industry to reduce its carbon emissions over the next 30 years. If ATAG intends to meet its goal of a 50% decrease in carbon emissions by 2050, it will almost certainly require a large increase in the use of biofuels.