However, SAF still costs nearly $10 per gallon at the pump versus less than $6 for fossil-based jet-A, according to data compiled by Embraer. And of the nearly 100 billion gallons of jet fuel consumed an- nually, only 100 million of SAF is produced. Only by scaling up production by several orders of magni- tude will the cost per gallon shrink. GAMA president Peter Bunce notes that the 2022 Inflation Reduction Act contains a blender’s fuel credit of $1.25 per gal- lon for SAF that’s intended to spur production and help the aviation industry achieve net-zero carbon emissions by 2050. However, the blender’s credit is due to expire by the end of 2024, and Congress has not moved to ex- tend it, according to Bunce. Making the blender’s credit a permanent law would encourage refiners to increase SAF production. Eric Hinson, GAMA chairman and Simcom International CEO, cites the European Union’s 2 percent SAF blending mandate for 2025 as part of its Fit for 55 program to reduce CO2 emissions. Hinson believes the U.S. govern- ment ought to mandate progressively increasing the SAF blend in jet-A until it’s 100 percent SAF neat by 2050. Nicolas Chabbert, senior vice presi- dent of Daher’s Aircraft Division, similarly believes that there needs to be a global mandate for blending in SAF to jet-A as a means to reduce aviation CO2 emissions. David Shilliday, vice president and general man- ager of Honeywell Power Systems, contends that
the industry can boost output to 10 billion gallons per year by 2030, using existing refineries and feed- stocks. If the industry is going to make the transition to 100 percent SAF by 2050, Shilliday believes that major U.S. government investment will be needed to help jet fuel suppliers achieve that goal. Without federal aid, it’s unlikely that large-scale increases in feedstock supply, SAF production, and cost-per-gal- lon affordability can be achieved. Most leaders with whom BusinessAIR spoke at NBAA feel that making the 2050 deadline for 100 percent SAF use won’t happen without a combi- nation of federal government subsidies, tax incen- tives, and/or progressively increasing SAF blending mandates. Several also note that both the airlines and trucking industry increasingly will compete for available biofuels, making it more difficult for busi- ness aviation operators to procure SAF at smaller general aviation airports. MARKET CONTINUES TO RISE Sustainability and eco-protester challenges not- withstanding, both Jetnet IQ and Honeywell have issued positive forecasts for new turbine business aircraft deliveries during the next decade. Jetnet IQ projects close to 8,700 turbofan aircraft, worth $268 billion, will be produced from 2023 to 2032. Javier Jimenez-Serrano, Honeywell’s strategy in- novation manager, projects 8,500 deliveries worth $278 billion.
Nicolas Chabbert (left), senior vice president of Daher’s Aircraft Division, and Didier Kayat, CEO of Daher, reported on strong deliveries of the OEM’s turboprop product line during one of many press conferences.
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