Latin America emerging as hot spot for more climate-friendly jet fuel
Author: Allison Lampert and Pliver Griffin
Latin America is drawing early investment for jet fuel produced from materials like forest residues and palm oil as emission-conscious airlines scour emerging markets for less-polluting fuel to power flights, industry executives say. While most sustainable aviation fuel, or SAF, is produced in the United States, Europe, and Singapore, Latin America is emerging as a budding market. That demand is driving early investments and reviving debate over palm oil, which has faced boycotts in southeast Asia over labor concerns and environmental grievances. The push comes as industry faces fresh pressure to curb pollution, with the United Nation's aviation agency targeting net zero emissions by 2050 and negotiators scrambling to reach an agreement on Monday at a Montreal summit to protect nature. Production of SAF, which can reduce emissions by up to 80% from conventional fuel, is used in an up to 50-50 blend with kerosene and remains scarce. It should hit 300 million liters in 2022 according to airline trade group IATA, but that is less than 1% of total fuel consumed by carriers. In the near term, the industry sees SAF hitting 10% of the total by 2030, and the 2050 net zero emissions target relies on SAF accounting for 65%, which would require 450 billion litres annually.