Insights Report – Fueling the Future: Sustainable Aviation in the Middle East

Fueling the Future: Sustainable Aviation in the Middle East
15 November 2024

 

Industry leaders, innovators and experts explored the transformative potential of sustainable aviation fuel (SAF) in the Middle East. This event brought together fuel producers, technology providers and consulting firms to discuss the latest advancements in SAF technologies, the opportunities for scaling adoption and the unique challenges facing the region. 

Expert Speakers 

  • Mohamed Al Ghailani, Aviation Sustainability Expert
  • Lars Hansen, Head of Operations and Technology, EnerTech Holding
  • Dr Udayan Banerjee, Policy & Legislation Specialist
  • Niklas Lund, Managing Director & Partner, Rockton Sustainable Aviation, (Online from Sweden)
  • Moderator: Piotr Konopka, Group VP, Global, Decarbonisation & Energy Programmes, DP World

Introduction: The potential of sustainable aviation fuels (SAF) is striking.  While aviation currently contributes about 3% of global emissions, SAF offers an 80% reduction in that impact. To meet net-zero targets by 2050, the International Air Transport Association (IATA) projects a need for around 449 billion litters of SAF, requiring an estimated investment of $1.5 trillion. However, achieving this scale will require overcoming significant regulatory, technological, and innovation challenges. 

Niklas Lund presents on the role of self-sustainable aviation fuel (SAF) in aviation’s journey to net-zero emissions by 2050, a commitment made by the industry through IATA and supported by ICAO. Aviation accounts for 2-3% of global CO2 emissions, but when considering other high-altitude emissions like nitrogen oxides and contrails, the impact is at least double. Current technological improvements in efficiency are not sufficient to offset the growth in aviation, leading to a potential doubling or tripling of emissions by 2050. This makes aviation one of the hardest sectors to decarbonize due to the energy requirements to overcome gravity. Achieving net zero will require substantial investment, estimated at $175 billion annually, compared to the projected $30 million profit for airlines in 2024. McKinsey’s study ranks aviation as one of the least prepared sectors for net zero. By 2050, projections suggest that 65% of emissions reductions will come from SAF, 19% from carbon capture and storage, 13% from new aircraft technologies, and 3% from improved operations and infrastructure. SAF can be produced from various feedstocks, including waste oil, plant oils, biomass, energy crops, municipal solid waste, algae, and even water and green energy.

The production and use of Sustainable Aviation Fuel (SAF) can be achieved through various pathways using different feedstocks and technologies. As of last year, six pathways were approved for blending with conventional jet fuel up to 50%, and three more for lower blending rates. SAF production methods have varying carbon reduction impacts, measured through life cycle assessments with differing methodologies. Despite its current low availability (below 1%) and high costs (2 to 8 times more expensive than conventional jet fuel), SAF is seen as essential for reducing emissions in long and medium-haul flights. The industry is expected to scale up, potentially lowering costs, but significant challenges remain, including competition with millions of years of natural crude oil production processes. Policies, especially in the EU, are being implemented to support SAF adoption, aiming to level the playing field and ensure a more harmonized global approach, given the international nature of aviation.

Maturity is a crucial factor. Investors need assurance that the implemented policies are solid and will remain stable over time, rather than being subject to changes. It’s also essential to recognize that there is demand from both airlines and corporate off-takers. Additionally, the maturity of construction and production processes must be established, ensuring that investments in new technologies will likely result in efficient and cost-effective production. Ultimately, the focus is on maturity. The commitment from the aviation and airline industries is substantial because they understand that neglecting this issue will have future repercussions. We cannot allow aviation to become an increasingly significant contributor to global emissions.

Technological Advancements in Sustainable Aviation Fuel (SAF)

Piotr Konopka: What do you consider to be the most recent technological advancements in Sustainable Aviation Fuel (SAF), particularly in the Middle East? Additionally, if you have insights from a global perspective, feel free to share. We’ve also established that investment is a critical lever for unlocking these projects. What types of investments and policy support do you think are essential to further the development of SAF? 

Lars Hansen: Currently, there is a demand for approximately 1.5 million tonnes of SAF annually, a figure expected to rise. As Nicholas pointed out, supply is struggling to keep pace with demand. Presently, most SAF is derived from biogenic CO2 sources, as Muhammad noted, but these resources are limited. A few years ago, when the maritime sector decided to pursue decarbonization, shipping companies began to order dual-fuel vessels that utilize methanol, which also relies on biogenic feedstock, creating competition with the aviation sector. As the maritime industry realizes it may not afford the premium prices the aviation sector is willing to pay for these fuels, the existing supply of biogenic CO2 is likely to be consumed by aviation rapidly.

This situation prompts us to explore alternative options, such as the power-to-energy approach, which involves utilizing hydrogen to potentially produce SAF. The Middle East is well-positioned for this due to its abundant solar and wind resources, allowing for competitive global production of hydrogen as a feedstock for SAF. The region’s capacity for large-scale production is immense, with no apparent constraints on solar and wind resources, along with access to desalinated water. However, we are currently operating at a very low scale, necessitating significant scaling efforts.

Another emerging initiative is the use of algae as a feedstock for SAF, though its scalability remains uncertain. The primary challenge lies in rapidly advancing these technologies to ensure that supply can meet the growing demand. In terms of feedstock, we need a broad range of sources, including recycled cooking oils and waste materials reintegrated into the value chain. However, the available quantity of these resources is insufficient. The global demand for SAF is increasing, not just in the Middle East, so scaling production will be crucial.

It’s essential to recognize that in the coming years, we will likely see the emergence of new technologies that differ from what we have today. The dynamic nature of this field is exciting, as there is a concerted push to solve the engineering and technological challenges we face. Humanity tends to develop solutions when necessary.

I’m always optimistic about our potential. A notable opportunity for the Middle East is related to its high CO2 emissions from energy production, primarily through the burning of gas and oil. There are growing initiatives aimed at capturing CO2 from these emissions. If we can implement carbon capture technology at scale in the Middle East, it could lead to positive outcomes from our reliance on fossil fuels. 

Economic Viability of Sustainable Aviation Fuel (SAF) Production in the Middle East

Piotr Konopka: I would like to delve deeper into the economic viability and scalability of Sustainable Aviation Fuel (SAF) projects. What do you perceive as the main obstacles to making SAF economically competitive with conventional jet fuels? Additionally, how might these challenges be addressed more effectively in Middle Eastern markets compared to other regions? Should governments in this area consider offering incentives or subsidies to promote domestic production?

Dr Udayan Banerjee: To begin, let’s examine the demand within the Middle East, particularly in the UAE. The region is home to major airlines such as Emirates and Etihad Airways, which are among the largest in the world. Their substantial fuel consumption presents a significant opportunity for SAF adoption, potentially enabling up to an 80% reduction in emissions for these airlines.

The UAE has established an ambitious SAF roadmap, targeting the production of 700 million litres of SAF annually by 2030. However, achieving this target poses considerable challenges. There are several key barriers to scaling up SAF production. As highlighted by previous speakers, no single production pathway will suffice to meet these targets. While used cooking oil is a commonly employed feedstock in Europe and the United States, other methods like converting municipal solid waste and biomass into SAF are also gaining traction. Projects have been initiated in various regions, but many have encountered difficulties. For instance, a project in Edmonton, Canada, has successfully transitioned from ethanol to methanol production since 2016, showcasing the potential of waste-to-fuel technologies.

Moreover, there are existing commercial facilities that have been capturing carbon emissions for years, using this captured carbon to produce ethanol and SAF. Despite the availability of these technologies at a commercial scale, the cost of producing SAF remains the biggest hurdle. As Mr. Nicholas noted, SAF can be two and a half to eight times more expensive than conventional jet fuel, depending on the production method used.

The high cost of production stems from the need for large-scale operations; without them, technological advancements are unlikely to materialize. The capital expenditures (CapEx) for these projects are substantial. Unlike typical project financing, which may cover up to 75% of costs through debt, SAF projects often rely on green bonds, capping debt financing at 50%. Thus, project proponents must contribute a significant equity portion—up to 50%—for projects that can range from $1.6 to $2 billion, which is a daunting challenge.

To tackle these issues, government intervention is crucial. Sovereign wealth funds in the region possess significant resources, yet there have been few initiatives to allocate this funding to SAF projects. For instance, I have been engaged in discussions about biomass-to-SAF initiatives in Abu Dhabi since 2014, and it took six years just to secure collaboration from ADNOC.

Currently, a consortium comprising ADNOC, BP, the Abu Dhabi Waste Management Centre, Masdar, and Etihad Airways is working together on this project, and we are now in the feasibility and engineering stage. Nevertheless, we face multiple challenges. A primary requirement for SAF production is access to renewable energy. The cost of solar energy has dramatically decreased, averaging around $0.03 to $0.04 per kilowatt-hour. However, when seeking renewable energy for SAF projects, the government offers rates of around 0.42 dirhams per kilowatt-hour. This discrepancy raises significant concerns about the economic viability of these initiatives.

Thus, it is imperative for government policy to drive the development of SAF projects. Support from governmental entities can facilitate the scaling of these projects, helping to meet the increasing demand for sustainable solutions in the region. Several initiatives are underway, including smaller projects focused on converting used cooking oil into SAF, such as those being pursued by TAP and Luthor Biofuels, as well as the Abu Dhabi Waste-to-SAF project, which aims for an annual production capacity of 140 million litres. With the right policies and support, the Middle East could become a leader in SAF production.

I am currently involved in a four-party consortium that includes two government entities from Dubai and two private companies focused on waste treatment. We have partnered with Lanzatech to advance the Dubai Waste to Sustainable Aviation Fuel (SAF) project, but significant challenges persist.

Regardless of the method chosen for converting waste into fuel—whether through conventional gasification and Fischer-Tropsch processes or through the fermentation of syngas to create ethanol and subsequently transforming that alcohol into jet fuel—hydrogen is a critical input. Unfortunately, hydrogen is costly, making government support vital for the project’s success. The government can assist in various ways, particularly by financing the project and providing renewable energy at minimal costs.

Another significant hurdle involves the production of hydrogen. Although it is possible to generate hydrogen from waste, the conventional approach is electrolysis, which requires water. The pressing question is whether we have sufficient water resources to meet the hydrogen demands of this project at scale. Addressing these multiple challenges is crucial if we aim to lower costs to a competitive level.

In my opinion, achieving the target of producing 700 million litres of SAF by 2030 in the UAE is feasible, but only if the government takes decisive action. There is ample opportunity for growth, but substantial government financing is necessary. Project proponents cannot bear the full financial burden alone; without substantial support, scaling up these technologies will be difficult, and debt financing will remain elusive. The costs associated with green bonds, where 50% of funding comes from equity, make it impractical for private investors to meet this target on their own. 

Lars Hansen: Regarding costs, there has been discussion about the price of sustainable aviation fuel (SAF) being significantly higher—possibly three to eight times the cost of conventional fuel. While it’s true that fuel constitutes around 25-30% of an airline’s operating expenses, it’s important to contextualize this in terms of ticket prices. Airlines will pass these costs onto consumers. However, would a passenger really hesitate to pay an extra $70 or $100 for a plane ticket for a business trip or a vacation in Paris, London, or the Alps? I doubt it. Although the cost may seem substantial, when viewed in the broader context, it becomes more manageable. I believe many would still be inclined to go skiing or travel, even with this increase. 

Ensuring Sustainable Aviation Fuel Production: Challenges and Solutions

Piotr Konopka raises an important question regarding the sustainability of Sustainable Aviation Fuel (SAF) production: How can we guarantee that it does not adversely affect our resources and ecosystems? Moreover, how do we effectively measure and certify this sustainability? At its core, SAF is fundamentally the same as traditional aviation fuel; it is merely produced through different methods.

Mohamed Al Ghailani elaborates on the two main types of certifications for SAF: technical certification and sustainability certification. These processes are distinct and serve different purposes. Technical certification focuses on verifying the approved production pathways established by organizations such as ASTM. These pathways detail the chemical processes used to create SAF from various feedstocks, such as ethanol or oils, through methods like the HEFA (Hydroprocessed Esters and Fatty Acids) process. The end product is a fuel molecule chemically similar to those derived from petroleum. However, SAF typically has advantages over traditional fuels, including a lower variability and reduced non-CO2 emissions, making it a cleaner option both technically and environmentally.

In contrast, sustainability certification evaluates the entire life cycle of the fuel. It examines all aspects of fuel production, from the cultivation of crops to the extraction of oils and subsequent processing. Various organizations, such as RSB (Roundtable on Sustainable Biomaterials) and ISCC (International Sustainability and Carbon Certification), are involved in the sustainability certification process.

An intriguing aspect of this discussion is the political landscape surrounding fuel production. Different regions often have conflicting stances on resource utilization. For instance, Europe has historically opposed palm oil due to its controversial implications, while the U.S. supports the second-generation bioethanol industry, which utilizes surplus ethanol for aviation and other sectors. Another relevant consideration is low carbon aviation fuel, a petroleum-based option that employs less energy-intensive processing methods compared to global standards, resulting in lower carbon intensity.

The question arises: Should the carbon intensity of fuels produced through different methods and in various locations be factored into sustainability assessments? This concept has recently gained acceptance as an alternative fuel option by ICAO (International Civil Aviation Organization).

Focusing on the sustainability aspect further reveals the economic opportunities that can arise from the SAF industry. A significant challenge is that fuel production sites often differ from consumption locations. One potential solution is the “book and claim” methodology. For instance, an airline could receive credits for the sustainable aviation fuel without needing to transport it directly to its facilities. This short-term strategy could facilitate faster adoption of SAF.

Additionally, airlines regularly utilize market-based measures to offset emissions that remain after implementing sustainable practices and technologies. These measures help bridge the gap in achieving environmental commitments and goals.

In conclusion, ensuring that SAF production is genuinely sustainable requires a multifaceted approach, including robust certification processes, consideration of political dynamics, and innovative solutions to address logistical challenges. Through these efforts, we can work towards a more sustainable aviation industry.

Audience Question: When do you anticipate this converting into a policy from the UAE’s perspective?

Dr Udayan Banerjee: The roadmap outlines five key principles, one of which is capacity. The Ministry of Energy, along with the Ministry of Climate Change and relevant agencies, is currently developing a policy with a goal of implementation by 2025. However, it remains uncertain whether this policy will address financing, as the roadmap does not mention project funding, which poses a significant challenge. While the government’s roadmap does support projects by providing land at no cost, we must consider the practicality of land locations, such as areas near the Dubai-Al Ain Road with limited utilities. Effective government support requires a comprehensive approach, where the government actively participates in these projects, similar to the role Adnoc plays in Abu Dhabi. It is essential for entities like Enoc to engage meaningfully in Dubai projects, even if they aren’t providing equity. For progress to occur, the government must take an active role in these initiatives.

Audience Question: Are there any public-private partnerships (PPPs) currently in place for Sustainable Aviation Fuel (SAF) production in this region? 

Dr Udayan Banerjee addressed the question by clarifying the current landscape regarding SAF production financing in the region:

“Regarding public-private partnerships for SAF production in this region, while projects like the Nrcam project in Alberta (connected to Veolia) exist, and energy transition projects (EPPs) are underway, the specific type of project financing and governmental support seen in other regions is currently lacking here.

For instance, the UK has implemented regulations recently signed by the King, and the US has Low Carbon Fuel Standards, both of which provide monetary credits to support SAF producers. We don’t have equivalent policies in this region. The ‘PPE projects’ mentioned, often involving 25-year leasing agreements, fall under debt financing models, similar to waste-to-energy projects with long-term debt arrangements. True PPPs, financed through a combination of equity and potentially green bonds, are not yet the norm here.” 

Niklas Lund expanded on potential solutions, emphasizing the demand side and collaborative approaches:

“To facilitate SAF production, focusing on the demand side could be very beneficial. While governmental support is crucial for early-stage capital expenditure (CapEx), driving demand through mechanisms like collective offtake agreements among airlines and corporate buyers could significantly help.

Creating sub-funds involving various stakeholders – airlines, corporate off takers, and investors – who scrutinize projects and invest in CapEx while securing offtake agreements could be another effective strategy. This multi-faceted approach is necessary as no single solution exists.

For any financing, whether governmental or commercial, long-term offtake agreements are essential for security. Airlines, traditionally operating on shorter conventional fuel contracts, are recognizing the need for commitments of ten years or more for SAF projects to be viable. This shift represents a change in their business model, presenting both opportunities and risks.

Collective offtakes, where even competitors collaborate, are a promising model seen elsewhere. Some airlines view sustainability similarly to safety – a collective responsibility. Procurement associations or investment funds that combine investment with offtake agreements could be instrumental.” 

Lars Hansen broadened the discussion to encompass wider partnerships crucial for energy transition:

“Moving beyond just PPPs, the complexity of energy transition necessitates extensive partnerships across the entire value chain. Niklas highlighted the evolving role of airlines, who are now actively investing in SAF projects to secure their supply, recognizing the current supply shortage relative to decarbonization commitments.

This proactive approach, demonstrated by airlines like Emirates and Etihad, as well as many European carriers, signifies a departure from the status quo. Meeting decarbonization targets requires new models where airlines directly participate in and invest in projects. While PPPs are important, collaborative efforts involving the entire supply chain and project developers will become increasingly common.” 

Mohamed Al Ghailani drew a parallel with the success of solar energy in the region and highlighted the evolving role of airlines:

“The remarkable cost reduction in solar energy production here, largely driven by initiatives like Masdar, offers a compelling example. A similar approach could be transformative for SAF. Government support is crucial, as without it, achieving SAF goals will be extremely challenging.

Furthermore, the operational models of airlines are evolving. Historically focused solely on passenger transport, their involvement has expanded to include diverse brands and products. The next evolution likely involves airlines becoming major players in the energy they consume. This proactive approach, already evident with airlines like United and Emirates, reflects a growing recognition of the importance of energy within their operations, driven partly by changing consumer behaviour.” 

In summary, the discussion revealed that while traditional PPPs for SAF production might be limited in the region, various alternative financing models, supportive policies in other regions, and emerging collaborative approaches involving airlines and the broader supply chain offer pathways for progress. The importance of governmental support and the evolution of airline operational models were also key themes.

Mohamed Al Ghailani: Navigating Aviation’s Trajectory at COP

 Insights from COP28 and Perspectives on COP29 Regarding SAFs 

From my vantage point within the COP environment, specifically focusing on the aviation and transport sector, the interplay between industry efforts, international frameworks, and the broader climate agenda is complex yet crucial. My experience at COP28 was particularly insightful, occurring in conjunction with two significant events: the Dubai Airshow and the ICAO Conference on Aviation Alternative Fuels (CAAF/3).

The Dubai Airshow demonstrably highlighted the aviation industry’s growing commitment to sustainability. Manufacturers and operators showcased their initiatives to reduce emissions, emphasizing technological advancements and the adoption of newer, more efficient aircraft. This industry-led momentum directly precedes and informs the discussions within international policy forums.

Immediately following the airshow, CAAF/3, organized by the International Civil Aviation Organization (ICAO), provided a platform for civil aviation organizations to report on international aviation emissions. This forum is the primary mechanism for accounting for these emissions, operating outside the direct scope of the UNFCCC’s Nationally Determined Contributions (NDCs) which primarily address domestic aviation. Countries with significant domestic aviation sectors, such as the USA and China, would account for those emissions within their NDCs. Understanding this distinction is key to grasping aviation’s positioning within the broader COP framework.

COP28 itself presented a unique atmosphere. The analogy of “building the ship while sailing through a storm” accurately captures the dynamic and often challenging nature of these negotiations. While aviation doesn’t typically occupy a central role in COP discussions due to the international emissions accounting under ICAO, COP provides a crucial platform for broader discussions on enabling policies and financing that can impact the sector’s decarbonization efforts, including the uptake of Sustainable Aviation Fuels (SAFs). Even though specific SAF mandates or targets might not be a primary outcome of COP, the overall momentum and political will generated can influence national policies and industry investment. Despite the intensity, my experience at COP28 was undeniably rewarding, offering a firsthand view of the intricate processes shaping the global climate agenda.

Looking ahead to COP29 in Baku, the focal point shifts towards the operationalization of the loss and damage fund and, more broadly, the crucial issue of climate finance. The ability to channel sufficient financial resources is paramount for facilitating the transition to a sustainable future across all sectors, including aviation’s adoption of SAFs. Without adequate investment in research, development, and deployment, the ambitious SAF targets articulated by the industry and ICAO will remain challenging to achieve.

Furthermore, discussions surrounding Article 6 of the Paris Agreement, which concerns market-based mechanisms, hold significant relevance for the aviation sector at COP29. A potential outcome could be the exploration of synergies between ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) – a key market-based measure for international aviation – and the frameworks established under Article 6 within the UNFCCC treaty. Finding alignment and avoiding double-counting between these mechanisms is essential for ensuring the environmental integrity and effectiveness of carbon reduction efforts in aviation. This could involve exploring how CORSIA-eligible emission reductions could potentially contribute to broader national or international climate goals under Article 6.

In conclusion, while COP28 may not have directly resulted in specific pronouncements solely focused on SAFs, it provided a crucial context alongside industry and sector-specific efforts. COP29, with its emphasis on finance and market mechanisms, offers a significant opportunity to further enable the adoption of SAFs. The potential integration of CORSIA within the broader Article 6 framework could be a key outcome, fostering a more cohesive and impactful approach to decarbonizing international aviation. These ongoing discussions highlight the evolving and interconnected nature of efforts to address aviation emissions within the global climate agenda. 

Navigating the Turbulence: Progress and Challenges in Sustainable Aviation

The pursuit of sustainable aviation is a complex endeavour, prompting a crucial question: are airlines and countries making meaningful strides towards this goal? Piotr initiated this very discussion, drawing attention to the financial hurdles highlighted by Doctor Udayan, particularly the necessity for significant equity or green bond funding. The conversation then turned to concrete examples of progress, specifically in the implementation of Sustainable Aviation Fuel (SAF) within the Middle East, and the broader role of investment in this sector.

Lars Hansen of Enertech offered insight into a significant project in Oman, clarifying its current focus on hydrogen production, with the potential for future SAF output. He emphasized the pioneering nature of the initiative, highlighting its structure as a powerful example of government and private industry collaboration. This partnership, involving entities like the Oman Investment Authority, Shell, and other global developers, aims to integrate various aspects of the supply chain. Lars astutely pointed out that a key challenge, applicable not only to SAF but to all green energy sources, lies in aligning supply with demand. He argued that bringing together the various stakeholders – from funding bodies and governments to potential consumers like airlines and shipping lines – constitutes a vital success in itself, even before tangible product emerges. This collaborative approach seeks to mitigate the uncertainties faced by both producers and consumers regarding future fuel availability for their investments in new technologies and infrastructure.

Building on this, Mohamed Al Ghailani shifted the focus towards the practical integration of SAF within the aviation sector, particularly in the Middle East. He noted a transition from the novelty of one-off SAF flights to a more critical focus on daily operational adoption. While acknowledging past demonstrations have proven the scientific viability of SAF, the current challenge lies in securing consistent and reliable resources to integrate it into regular business. Mohamed proposed the concept of “green aviation corridors,” drawing parallels with the shipping industry’s green shipping corridors, suggesting collaborative policies between regions like Singapore and the UAE could foster wider SAF adoption. He also highlighted the advantageous position of regional airlines with their modern fleets, inherently contributing to lower emissions due to advanced technology. Furthermore, Mohamed cited Etihad’s innovative operational tests, including exploring contrail avoidance software. While acknowledging the trade-offs between fuel consumption and contrail reduction, he emphasized the ongoing research and adoption of diverse technologies aimed at minimizing environmental impact. He lauded Emirates’ development of a sustainability fund as a significant demonstration of their commitment and strategic direction.

Finally, Niklas Lund expressed long-term optimism regarding new propulsion technologies. He believes these advancements will lessen the reliance on policy due to their potential for significantly lower operating costs. While acknowledging that current innovations will be expensive initially and require policy support, Lund argues that new propulsion can offer dramatic cost reductions early on, drawing a parallel to the trajectory of solar power. Solar energy initially needed subsidies but has become the most cost-effective generation method. Although current propulsion technology has limitations, Lund anticipates breakthroughs by the late 2030s, likely starting in the regional sector, with contrail reduction being an immediate opportunity. He emphasizes the considerable impact of contrails, citing independent studies, and advocates for immediate action on mitigation strategies like rerouting aircraft, despite the small increase in fuel burn. Lund suggests visual satellite identification as a feasible and relatively quick implementation method. Regarding carbon capture and storage, while not an expert, he sees potential for significant improvements, noting its broader application beyond aviation and the growing corporate investment in this area. Ultimately, Lund stresses the need for a multi-faceted approach, exploring various technologies simultaneously, even though this presents communication and financing challenges for policymakers who prefer simpler solutions. He concludes by emphasizing the essential role of governmental support for capital expenditure and pricing mechanisms to drive the adoption of these diverse sustainability solutions.

Final Thoughts

The Expert Speakers identified government support as the key factor for accelerating the global adoption of sustainable aviation fuel (SAF). Dr Udayan Banerjee pointed to the UAE’s ambitious policy target for 2025, the UK’s recently implemented regulations, and the US’s pioneering low carbon fuel standards and subsidies, noting that countries like Canada and Singapore are also providing policy support. Lars Hansen concurred, adding the EU’s strong, though complex, policies to the list. Niklas Lund emphasized that both government support and policies, intrinsically linked to government action, are essential. Mohamed Al Ghailani underscored the direct correlation between policy implementation and production support, arguing that the absence of policy significantly hinders industry development.

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