Attacks on Iran and the closure of the Strait of Hormuz have disrupted the European aviation sector. The fact that jet fuel prices have nearly doubled compared to pre-war levels and the potential for fuel shortages are threatening airline profits and unexpectedly increasing interest in “Sustainable Aviation Fuel” (SAF).
“Elchi” reports that decarbonizing the aviation sector is extremely difficult due to the weight of batteries and the storage challenges of hydrogen.
SAF, produced from biomass such as used cooking oil, is the strongest alternative due to its compatibility with existing engine technology and its ability to reduce emissions by up to 80 percent. However, the biggest obstacle for SAF has always been its price.
The gap has narrowed to less than double
SAF prices have been approximately three times higher than fossil-based jet fuel. Traditional jet fuel has risen from $800 to over $1,500 per ton. With the price of SAF hovering around $2,700, the gap has narrowed to less than double.
Energy security and raw material problem
Since 30% of Europe’s jet fuel needs are met by the Gulf region, bottlenecks in the Strait of Hormuz have become a strategic problem.
However, SAF production carries a new risk of dependency. 69% of the raw materials used for SAF production by the European Union (EU) come from abroad; China alone accounts for 38% of this share.
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