Stand-off between airlines and oil groups threatens net zero flying

A stand-off between airlines and energy groups over the production of sustainable air fuel is stalling the transition to net zero flying.  Airlines complain that sustainable aviation fuel (SAF) is too expensive and not enough is being made. But energy companies are reluctant to invest in more production until there are long-term orders. SAF is a broad term covering jet fuel that is not made from fossil fuels. Almost all the fuel is made from organic material, including crops, animal fat and used cooking oil. Depending on what it is made from, it can reduce the net carbon emissions from flying between 60 and 90%. But it costs at least two to three times more than standard jet fuel. The situation is increasingly critical for airlines, which have few alternatives to cut their emissions. Aviation makes up about 2.5% of global greenhouse gas emissions, according to the International Energy Agency. At the start of this year, rules took effect in the EU and the UK forcing airlines to buy SAF for at least 2% of their total fuel use. In the EU, this rises to 6% in five years’ time and then 70% by 2050. The UK will require 10% by 2030 and 22% by 2040. But the uncertainty over SAF’s future has seen many energy companies scale back investment plans. Last July, Shell paused construction of a SAF and renewable diesel plant in Rotterdam, which it had given the green light in 2021, when the market had a more optimistic outlook.<br/>