The Airline Industry’s Dirty Secret: Clean Jet Fuel Failures
In 2019, Scott Kirby, the chief executive of United Airlines, touted the airline’s partnership with green jet fuel producer World Energy as a pioneering example for the aviation industry to reduce emissions. However, this collaboration, once seen as a beacon of environmental progress, came to an unfortunate end.
World Energy, based in Boston, gained recognition as one of the first companies globally to produce sustainable aviation fuel (SAF) commercially. SAF is a renewable fuel derived from sources like used cooking oil, agricultural residues, and other waste materials. Its Los Angeles-based Paramount refinery supplied millions of gallons of SAF annually, becoming essential to the commitments made by airlines such as United Airlines and JetBlue Airways. These airlines had pledged to help the industry transition to a 10% SAF blend by the end of this decade. Yet, the refinery ceased operations quietly in April, a stark reflection of broader industry struggles.
World Energy’s dreams of a second plant in Houston are also in jeopardy, stalled by a lack of commitment from the airline industry. Gene Gebolys, the CEO of World Energy, criticized some airlines for overstating their support for SAF projects, highlighting the gaps between public statements and actual commitments. While he noted some airlines have made efforts to support SAF producers, he emphasized the importance of governmental incentives to foster progress.
The news of United Airlines terminating its fuel purchase contract with World Energy and the subsequent closure of the Paramount refinery has gone largely unnoticed until now. United Airlines acknowledged the end of its relationship with World Energy without citing specific reasons. JetBlue continues to regard World Energy as a valued partner, maintaining their collaboration.
The predicament of World Energy is illustrative of the larger struggles faced by clean fuel startups. Despite nearly two decades since the first biofuel-powered commercial flight, the airline industry’s transition to greener alternatives appears more aspiration than reality.
The International Air Transport Association (IATA), representing 340 airlines, forecasts that SAF will only account for a mere 0.7% of total jet fuel this year, showing minimal progress compared to increasing air passenger traffic. Achieving IATA’s aim of net zero emissions by 2050 would require a massive scale-up in SAF usage, far beyond the current production capabilities.
While a multitude of new SAF initiatives are being proclaimed by airline industry leaders, claiming potential rapid growth akin to that seen with electric vehicles and solar energy, a comprehensive action plan or transparent project database remains absent. To fill this gap, a dedicated database of airline SAF initiatives was developed to provide a clearer picture of the sector’s modest green advancements. This revealed a stark reality: the industry lacks a definitive path to meet net zero targets.
Of the 165 SAF projects announced over the past decade, only 36 have come to fruition. Even among these, significant issues were encountered, exemplified by the challenges faced by the Paramount refinery. Meanwhile, 23 projects have been abandoned, and many others remain stalled, delayed, or merely promise credits without actual fuel delivery.
The aviation sector has primarily focused on Hydroprocessed Esters and Fatty Acids (HEFA) to convert waste oils, fats, and grease into jet fuel. However, HEFA is severely restricted by the scarcity of suitable raw materials, incapable of meeting long-term fuel demands. Alternative methods for producing SAF need development in parallel, emphasized IATA representatives.
The significance of aviation in global emissions cannot be overstated. Air travel currently accounts for 2.5% of global emissions of greenhouse gases, a figure destined to escalate as air traffic increases. Painting an overly optimistic picture of SAF breakthroughs enables airlines to enhance their green credentials without imposing more rigorous interventions such as stricter emissions caps or higher carbon taxes.
Failing to adequately address its reliance on traditional jet fuel could cost the industry dearly. New EU regulations mandate airlines to incrementally increase their use of SAF starting at 2% in 2025 and potentially up to 70% by 2050. These mandates could lead to billions in additional fuel purchase costs and compliance expenses annually.
Challenges persist beyond the Pacific. SAF initiatives in the United States are experiencing stagnation, with producers eyeing opportunities elsewhere, such as a proposed SAF facility in Panama. However, these efforts are hitting roadblocks due to lukewarm airline interest.
Moreover, while technologies like the Fischer-Tropsch process have emerged, touted by startups like British company Velocys for converting diverse waste into clean fuel, they struggle to reach commercial production. Past setbacks, financial burdens, and technical challenges have kept Velocys and similar companies from achieving anticipated progress.
Thus, the journey to a sustainable aviation future is fraught with hurdles. While airlines’ confident projections about SAF can shield them from immediate regulatory scrutiny, a more coordinated, collective effort—including substantial industrial-scale investments and partnerships—is critical for meaningful progress.
The potential future of aviation hinges on the industry’s ability to execute significant collective action, shifting beyond isolated commitments toward substantial, cooperative investments in sustainable aviation fuel production. Until then, the path to cleaner skies remains elusive.
