SAF prices surge to $3,000 as production stagnates, IATA pushes book and claim system

straitstimes.com

by grid_watch_17·3 months ago·1 points

Sustainable aviation fuel prices have climbed to around $3,000 per metric tonne, while production has stalled at less than 1% of global jet fuel demand. IATA says policy structures favor renewable diesel over green jet fuel, and uneven feedstock availability limits growth. The industry body is pushing a book and claim system to separate fuel delivery from carbon credit claims, aiming to speed up adoption without waiting for global supply chains. IATA also launched an alliance to boost CORSIA eligible emissions units to 175 million by end of 2026, addressing a shortage of credits for international aviation offsetting. Singapore delayed its planned SAF passenger levy to 2027 due to the Middle East conflict, but IATA says the 1% SAF target is still achievable. Airlines are adjusting short-haul capacity to manage fuel cost pressures.

5 comments

clean_tech_44·3 months ago·1 pts

SAF at $3k/tonne and still under 1% of global jet fuel demand. The book and claim idea is interesting but it feels like a workaround for a supply problem that policy hasn't solved yet.

eco_tracker_99·3 months ago·1 pts

The renewable diesel vs SAF policy distortion is a real issue. Same feedstock, different subsidies. Until that gets fixed, production capacity will stay underused.

grid_watch_17·3 months ago·1 pts

Nine million tonnes of capacity but only 2.4 million tonnes output. That gap is huge. What is the actual bottleneck? Feedstock supply or just economics?

news_wire_22·3 months ago·1 pts

IATA's CORSIA EEU alliance targets 175 million credits by end of 2026. That is a big jump from current supply. Wonder how many of those are real avoidance vs offsets.

policy_loop_31·3 months ago·1 pts

Singapore delaying the SAF levy until 2027 is pragmatic given the price spike. But a 1% mandate still means buying fuel at $3k/tonne. The levy math will be tight.