Airlines and energy firms clash over green fuel supplies

Airlines and energy firms clashed over scarce availability of alternative fuels on Tuesday as carriers ended a three-day summit struggling to square near-record demand with supply chain problems and pressure to meet environmental goals. The aviation industry has committed to reducing net emissions to zero by 2050 largely through plant-based Sustainable Aviation Fuels (SAF). But with current supplies of SAF covering just 0.5% of the airlines' fuel needs, disagreements surfaced during an annual meeting of the IATA, attended by energy companies including France's TotalEnergies. "Total's net earnings last year were $23.2b. The whole airline industry's net earnings in 2023 were $27b," IATA Director General Willie Walsh said during a closing debate. "The fuel companies who produce the problem ... we need to see those companies like Total investing significant sums of money in the development of Sustainable Aviation Fuel. That's the reality of where we are." The head of the French energy giant's aviation and marine business defended its commitment to helping industries like aviation, which has few immediate alternatives, meet its goals. "Thank you for raising our excellent results," senior vice-president Louise Tricoire, responded during lively exchanges on stage in Dubai, adding that TotalEnergies already re-invests the bulk of its profit in renewable energy research. "So I don't agree that we don't do our part with SAF; we are doing our part". SAF production doubled in 2023 and is expected to triple in 2024. But it costs three times more than kerosene and airlines reiterated this would have to be passed to consumers. They also complain they are competing with other industries for access to limited renewable fuel capacity and need more support from governments to complete the ambitious switch-over.<br/>