Latin America emerging as hot spot for more climate-friendly jet fuel

Latin America is drawing early investment for jet fuel produced from materials like forest residues and palm oil as emission-conscious airlines scour emerging markets for less-polluting fuel to power flights, industry executives say. While most sustainable aviation fuel, or SAF, is produced in the United States, Europe, and Singapore, Latin America is emerging as a budding market. That demand is driving early investments and reviving debate over palm oil, which has faced boycotts in southeast Asia over labor concerns and environmental grievances. The push comes as industry faces fresh pressure to curb pollution, with the United Nation's aviation agency targeting net zero emissions by 2050 and negotiators scrambling to reach an agreement on Monday at a Montreal summit to protect nature.<br/>While SAF is not currently produced in Latin America, Honeywell's Performance Materials and Technologies (PMT) unit is talking to companies about 12 proposed SAF projects in the region valued in the billions of dollars, up from three projects in 2018, an executive told Reuters. "We have two that we are going to announce ... in 2023," said Jose Fernandes, the region's president for Honeywell PMT, which supports companies in converting vegetable oil and fats into SAF. "Latin America right now is really a hot spot for Honeywell." The US company is working with Brazilian biodiesel producer ECB Group on an $800m to $1b plant in Paraguay featuring SAF expected to be operational in 2025.<br/>