Will sustainable aviation fuels take off?

Published On Aug 29, 2024, 9:14 PM

Sheffield University is running a program on sustainable aviation fuels (SAF) using a converted jet engine to test synthetic fuels made from renewable materials. These SAFs can significantly reduce carbon emissions and air pollutants compared to traditional fossil fuels. Despite the potential for significant growth in air travel, the aviation industry is confronting challenges in increasing SAF production and reducing costs. Governments are starting to mandate the use of SAF, with the UK and EU planning to boost SAF fuel mandates considerably in the coming years. However, the current production of SAF remains very low, and costs are high, creating skepticism among environmentalists regarding the viability of SAF as a primary fuel source for the future.

Stock Forecasts

The growing emphasis on sustainable aviation fuels, especially amid government mandates, indicates a larger market opportunity for companies involved in SAF production and technology. The increased investment into SAF projects is likely to create a surge in demand for relevant technologies and feedstock.

As demand for SAF increases alongside regulatory requirements, companies that develop efficient production technologies for SAF could see profits grow significantly, despite current challenges in scaling up production and reducing costs.

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