Mandates needed for sustainable aviation fuel to resolve supply impasse
Neste says demand needs to rise before investments can be made; Iata wants supply to increase so prices can fall
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Tay Peck Gek
SUSTAINABLE aviation fuel suppliers and users are at odds over how much of the renewable fuel the industry needs and how much should be produced, resulting in an impasse that may require regulatory intervention to resolve.
Some market players suggest demand is falling short of both supply and capacity, limiting refineries’ appetite to invest and hindering the industry’s growth. Carriers, however, think more supply is needed so that prices can come down.
Sustainable aviation fuel capacity doubled in 2023, as did output. Yet, producers have been very cautious because demand for the fuel remains low.
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