The airline industry’s dirty secret: Clean jet fuel failures – Reuters

Report on Sustainable Aviation Fuel (SAF) Production and its Impact on Sustainable Development Goals

Executive Summary: Production Shortfalls Impeding Global Goals

An analysis of the aviation industry’s transition to Sustainable Aviation Fuel (SAF) reveals a critical production deficit that severely threatens the sector’s net-zero emissions targets. This shortfall has significant negative implications for the achievement of several key UN Sustainable Development Goals (SDGs), particularly those related to climate action, clean energy, and sustainable economic growth.

SDG 13 (Climate Action): Current and projected SAF production is estimated to meet only 10% of the volume required for the industry’s net-zero objective.
SDG 7 (Affordable and Clean Energy): The high cost of SAF, reported to be three to five times that of conventional jet fuel, presents a major barrier to its widespread adoption.
SDG 9 (Industry, Innovation, and Infrastructure): Failures in scaling up production infrastructure, as seen in the Paramount refinery case, highlight systemic challenges in the transition to sustainable industrial models.
SDG 17 (Partnerships for the Goals): Disagreements between the airline and oil industries over responsibility for the production gap indicate a breakdown in the collaborative partnerships necessary to drive the energy transition.

Analysis of SAF Production Deficit and Industry Discord

Production Capacity vs. Climate Action (SDG 13)

The gap between SAF supply and the demand required for climate targets is substantial. A Reuters analysis indicates that even if all announced projects reach full capacity, they would generate only 12 billion gallons of SAF, a mere fraction of what is needed to fulfill the industry’s commitment to SDG 13.

Economic Viability and Partnership Failures (SDG 7 & SDG 17)

The slow progress is exacerbated by economic challenges and a lack of industry alignment, undermining both SDG 7 and SDG 17.

Willie Walsh, Director of the International Air Transport Association (IATA), asserts that the oil industry is failing to produce sufficient quantities of SAF.
Conversely, oil industry executives, such as Bernard Pinatel of TotalEnergies, argue that high prices limit demand from airlines, suggesting a potential for overcapacity rather than a shortage. This price disparity directly challenges the “affordable” aspect of SDG 7.
This conflict between producers and consumers underscores a critical failure in partnerships (SDG 17) needed to create a stable and scalable market for sustainable fuels.

Case Study: Paramount Refinery Closure

Impact on Sustainable Infrastructure and Economic Growth (SDG 8, SDG 9, SDG 12)

The recent closure of the World Energy-owned Paramount refinery in California serves as a stark example of the challenges facing the SAF sector. The facility’s failure represents a direct setback for multiple SDGs.

The refinery was a model for SDG 12 (Responsible Consumption and Production), converting used cooking oil and animal fat into fuel.
The project’s $2 billion expansion was halted after its partner, Air Products, withdrew, citing “challenging commercial conditions.” This failure to develop resilient, sustainable infrastructure is a blow to SDG 9.
The subsequent closure of the plant and the layoff of its 35 employees directly contravenes the principles of SDG 8 (Decent Work and Economic Growth).

Future Outlook

World Energy’s CEO has described the closure as a “reset” for a project that was over budget and behind schedule. However, no definitive timeline for reopening has been provided. The case illustrates the immense financial and operational risks that hinder the scaling of SAF infrastructure, posing a continued threat to the aviation industry’s sustainability commitments.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 7: Affordable and Clean Energy

The article’s central theme is Sustainable Aviation Fuel (SAF), a form of clean energy intended to replace conventional jet fuel. The discussion revolves around the challenges of producing it at scale and its high cost, which directly relates to the goal of ensuring access to affordable and clean energy.

SDG 9: Industry, Innovation, and Infrastructure

The need to build and expand infrastructure for SAF production is a key issue. The article details the failure of a “$2 billion expansion” of the Paramount refinery, highlighting the significant challenges in building resilient infrastructure and fostering the innovation required for a green industrial transition.

SDG 12: Responsible Consumption and Production

The shift from fossil-based jet fuel to SAF made from “cooking oil and animal fat” represents a move towards more sustainable production and consumption patterns. The article explores the difficulties in scaling this new mode of production to meet the demands of the aviation industry.

SDG 13: Climate Action

The primary driver for developing SAF is to combat climate change by reducing the aviation industry’s carbon footprint. The article explicitly mentions the industry’s “net zero target” and states that current potential SAF production is only “10% of what’s needed” to achieve it, directly linking the fuel’s production to climate action goals.

SDG 8: Decent Work and Economic Growth

The economic viability of green industries and its impact on employment is touched upon. The closure of the Paramount refinery resulted in “all 35 employees” being “laid off,” illustrating the potential negative economic and social consequences when green energy projects fail or face challenges.

SDG 17: Partnerships for the Goals

The article highlights a breakdown in partnerships crucial for achieving sustainability goals. This is shown by the conflict between airlines (IATA) and the oil industry, as well as the withdrawal of a key partner, Air Products, from the Paramount refinery project, citing “challenging commercial conditions.”

2. What specific targets under those SDGs can be identified based on the article’s content?

Under SDG 7 (Affordable and Clean Energy)

Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article directly addresses this by discussing the need to increase the production of SAF, a renewable energy source, to meet the aviation industry’s needs.
Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The failed “$2 billion expansion” project and the conflict between airlines and oil companies illustrate the immense challenges in promoting investment and cooperation for clean energy infrastructure.

Under SDG 9 (Industry, Innovation, and Infrastructure)

Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable… and greater adoption of clean and environmentally sound technologies. The effort to refurbish and expand the Paramount refinery to produce SAF is a direct example of attempting to meet this target.

Under SDG 13 (Climate Action)

Target 13.2: Integrate climate change measures into national policies, strategies and planning. The aviation industry’s adoption of a “net zero target” is a clear example of a sector-wide strategy to integrate climate change measures into its planning.

Under SDG 17 (Partnerships for the Goals)

Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The article provides a negative case study for this target, where a key private-private partnership between World Energy and Air Products collapsed, stalling a major sustainability project.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Indicators for SDG 7 Targets

Volume of renewable fuel produced: The article mentions a potential of “12 billion gallons of SAF production,” which serves as a direct quantitative indicator.
Share of renewable energy in sector-specific consumption: The statement that current potential production is only “10% of what’s needed to hit the net zero target” implies that the percentage of SAF in the total aviation fuel mix is a key progress indicator.
Price of renewable energy: The fact that “SAF costs three to five times more than jet fuel” is a clear indicator of its affordability and market competitiveness.
Investment in clean energy: The article cites the “$2 billion expansion” project, making financial investment in SAF infrastructure a measurable indicator.

Indicators for SDG 8 Targets

Jobs lost in specific sectors: The mention that “35 employees were laid off” serves as a direct indicator of the employment impact of challenges within the green energy industry.

Indicators for SDG 13 Targets

Progress towards emission reduction goals: The “net zero target” is the overarching goal. The amount of SAF produced and used is a proxy indicator for measuring progress towards this climate target.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article. In this table, list the Sustainable Development Goals (SDGs), their corresponding targets, and the specific indicators identified in the article.

SDGs	Targets	Indicators
SDG 7: Affordable and Clean Energy	7.2: Increase substantially the share of renewable energy. 7.a: Promote investment in energy infrastructure and clean energy technology.	– Volume of SAF produced (e.g., “12 billion gallons”). – Share of SAF in total aviation fuel mix (e.g., “10% of what’s needed”). – Price ratio of SAF to conventional jet fuel (e.g., “three to five times more”). – Financial investment in SAF infrastructure (e.g., “$2 billion expansion”).
SDG 9: Industry, Innovation, and Infrastructure	9.4: Upgrade infrastructure and retrofit industries to make them sustainable.	– Number and scale of SAF production facilities being built or expanded. – Investment in retrofitting refineries (e.g., the Paramount project).
SDG 12: Responsible Consumption and Production	12.2: Achieve the sustainable management and efficient use of natural resources.	– Type of feedstock used for SAF (e.g., “cooking oil and animal fat”).
SDG 13: Climate Action	13.2: Integrate climate change measures into policies and planning.	– Adoption of industry-wide climate goals (e.g., “net zero target”). – Progress towards meeting emission reduction targets.
SDG 8: Decent Work and Economic Growth	8.5: Achieve full and productive employment and decent work for all.	– Number of jobs lost in green energy projects (e.g., “35 employees were laid off”).
SDG 17: Partnerships for the Goals	17.17: Encourage and promote effective public-private and civil society partnerships.	– Number of failed or successful private-private partnerships for sustainability projects (e.g., withdrawal of Air Products from the World Energy project).

Source: reuters.com