IATA: price of SAF will remain high
In the future, sustainable aviation fuel (SAF) will probably stay more expensive than kerosene. This will even be the case when large-scale production kicks in, said IATA’s head Willie Walsh on a conference in Lisbon.
The head of IATA expects the price of SAF to come down when deliveries reach a large scale, compared to what he calls the "tiny volumes" of today. But in his view, SAF will remain at a premium to kerosene.
According to earlier estimates by the airline association, SAF could contribute around 65% of the reduction in emissions needed by aviation to reach net-zero emissions by 2050.
But airlines as well as the general public need to be aware of the high cost, Walsh stated. "I truly believe SAF will always be priced at a premium to kerosene," Walsh told a conference in Lisbon.
However, Walsh says according to a report by KFGO: "I believe the industry is ready to embrace that. The industry recognises the problem, is doing everything it can to address it and we will achieve the targets because... there isn't an option here."