Industry Insights: SAF and the Sustainable Aviation Futures North America Congress

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The Sustainable Aviation Futures North America Congress is a forum for stakeholders in the aviation and energy industries to discuss decarbonization and the production of sustainable aviation fuel (SAF). Sr. Project Manager Miles Dunn discusses his take aways from the conference.

Introduction
Aviation fuel is the single largest contributor to the airline industry’s greenhouse gas emissions. SAF is  the obvious choice for decarbonizing the industry, until new fuel and propulsion technologies are available. Some airlines and countries have begun to seize the SAF opportunity. International Airlines Group has had a 200% increase in SAF usage however it only composes 1.9% of their fuel usage.  SAF usage in North America continues to grow in 2025 but at very small scale. Australia is including SAF in its energy policy as a strategy to manage energy security and independence. But the nascent industry faces regulatory and technological challenges, high entry costs, lack of financial incentives, and feedstock and product supply chain discordance.

Blended vs Drop in Fuel
SAF cannot be used as a 100% “drop-in” replacement for conventional jet fuel because of differences in its chemical composition, mainly aromatics content. SAF must be blended with fossil jet fuel to meet proper combustion, lubricity,  and energy density specifications. To ensure safety, performance, and compatibility with current aircraft and airport systems, SAF must be blended, typically up to 50%, with conventional jet fuel before use. Airports are reluctant to have unblended SAF on airport property due to safety concerns, and most major airports do not have real estate available to expand its fuel system. This implies that SAF will need to be blended offsite. While blended SAF is stable, the process adds additional time, transportation, and processing infrastructure that add to the complexity and cost of SAF. Blended SAF costs two to three times more than traditional Jet-A.

Regulatory Challenges
SAF faces significant commercial barriers due to limited and inconsistent government incentives. Without strong policy support or price parity with conventional jet fuel, the razor-thin margins of the airline industry make it nearly impossible for carriers to proactively adopt renewable fuels at scale. In addition, the patchwork of region-by-region SAF policies creates complexity for producers—each with different feedstock eligibility rules, carbon accounting methods, and climate targets—adding cost and administrative burden to production and distribution. Federal incentives remain limited as well; for example, the 45B clean fuel production credit is set to expire in just two years, leaving little long-term certainty for investors or developers. This lack of stable, coordinated policy frameworks continues to hinder the commercial viability and rapid expansion of SAF across the aviation industry.

Supply Chain
SAF production depends on a reliable, transparent, and cost-effective feedstock supply chain—yet this remains one of the industry’s biggest bottlenecks. While SAF is technically feedstock-flexible and can be produced from various renewable sources, the infrastructure to aggregate, transport, and verify these feedstocks at scale is still underdeveloped. Producers must document the full carbon intensity and traceability of each feedstock, adding complexity and cost. Compounding the challenge, the disjointed supply chain often forces producers to secure long-term feedstock contracts before they can finalize offtake agreements with airlines, placing significant financial risk on the developers. This sequencing problem creates a “chicken-and-egg” scenario that has stalled many new SAF projects from moving forward to commercial operation.

SAF Solutions – Regional Hubs
Regional hubs could be a strong solution for SAF production. They would create integrated, localized ecosystems that reduce cost, risk, and logistical complexity across the value chain. By co-locating feedstock collection, processing, refining, and distribution infrastructure within a defined region, hubs minimize transportation distances and emissions, improving both the carbon intensity and economics of production. They would also allow producers to leverage local feedstock strengths while connecting directly to nearby airports for efficient fuel delivery. In addition, regional hubs foster collaboration among producers, airlines, technology providers, and policymakers, enabling shared infrastructure, workforce development, and permitting efficiencies. This clustering effect would improve project viability and helps scale SAF production.

SAF Solutions – Federal Regulation
To meaningfully accelerate SAF production in the United States, federal regulation needs to provide long-term, consistent incentives that de-risk investment and close the price gap with conventional jet fuel. For example, extending the 45Z Clean Fuel Production Credit would give investors and developers the confidence needed for long-term project financing. A federal blending mandate (like the Renewable Fuel Standard for road fuels) would create predictable demand for SAF.  Federal offtake commitments modeled after the Department of Defense’s or DOE’s programs for early-stage clean technologies could underwrite early projects and catalyze private sector participation. In short, a coordinated federal policy framework that combines production incentives, demand guarantees, and infrastructure support is essential to move SAF from small pilot production to a commercially viable industry capable of delivering aviation industry decarbonization.

Conclusion
Progress toward the commercialization of SAF is gaining momentum globally, driven by government initiatives and industry collaboration. In the United States, the military is advancing programs to integrate SAF into its operations, representing a major potential offtake partner that can help de-risk early projects and stabilize demand. Internationally, the United Kingdom stands out with a coordinated government–industry task force focused on setting realistic targets, mandating SAF blending starting January 1, 2025, and allocating $585 million to directly support production—an approach that combines policy clarity with financial backing. The EU has mandatory supply and blending mandates, tighter emissions trading requirements increase the cost of fossil jet fuel, and a pool of allowances is earmarked so that SAF users can offset part of the cost difference. On the supply side, as much as 600 million gallons per year of SAF could be derived from existing renewable diesel capacity, though stronger incentives are needed to make separation economically viable. SAF’s flexibility in using multiple renewable feedstocks, including an estimated 2 billion gallons of surplus ethanol, also presents a major opportunity to expand production without competing with food systems. In parallel, U.S. cities like San Francisco and Seattle are conducting feasibility studies to assess SAF infrastructure and market readiness—further evidence that the path toward large-scale commercialization is actively taking shape.