BlackRock, Block fund major sustainable aviation fuel deal

Sustainable aviation fuel is getting a huge boost from some of the world’s biggest companies. BlackRock Inc., Block Inc., Samsara Inc. and Ripple are participating in the Sustainable Aviation Buyers Alliance and buying certificates as part of the group’s $200m in clean jet fuel deals. The purchase will add sustainable aviation fuel (SAF) to Alaska Air Group Inc. passenger flights while offsetting the companies’ business travel emissions. Aviation accounts for about 2% of global emissions, but it’s one of the hardest sectors to decarbonize. Airlines and startups are making efforts to increase fuel efficiency and scale electric and hydrogen-powered aircraft, but those are far from commercialization and, in the latter case, likely not feasible for long-haul flights. The best bet to cut emissions is SAF, which can be blended with traditional jet fuel without requiring any aircraft retrofits. Clean jet fuel costs two to four times as much as fossil-based jet fuel, according to BloombergNEF. Still, demand far exceeds available supply and airlines are falling behind on their purchasing commitments. To cut costs and spur more production, companies with hard-to-reach net zero goals are purchasing SAF certificates. Buyers are allowed to count the carbon cuts tied to the certificate against their indirect or Scope 3 emissions while airlines gets to put it on their Scope 1 ledger — that is, emissions they’re directly responsible for. It’s difficult for companies to reduce flying-related emissions, because “they’re not going to tell employees to stop traveling to customers or clients,” said Claire Kiely, head of marketplace carbon supply for sustainability platform Watershed, which facilitated the purchase. Instead, by participating in procurement programs like the Sustainable Aviation Buyers Alliance (SABA), companies can influence airlines and fuel producers to make the change.<br/>