NREL report recommends SAF blending and supply chain optimisation

A new report by the U.S. National Renewable Energy Laboratory (NREL), titled “Sustainable Aviation Fuel Blending and Logistics,” highlights the pivotal role of sustainable aviation fuel (SAF) in reducing greenhouse gas emissions from the aviation sector. With global aviation accounting for 2.1% of human-induced CO2 emissions and 12% of transport emissions, the transition to SAF is increasingly critical.

The report provides updated insights and recommendations for scaling SAF production, blending, and distribution, building on the groundwork laid by NREL’s 2021 report, “U.S. Airport Infrastructure and Sustainable Aviation Fuel.”  

The report is the result of ongoing collaborations between NREL researchers and aviation industry stakeholders. It offers detailed recommendations for blending SAF with petroleum-based jet fuel (Jet A) and optimising supply chain movements to meet the growing demand. A key finding is that SAF can be efficiently mixed with Jet A at existing fuel terminals equipped with blending equipment, software, and staff, enabling direct delivery to airports. This approach is expected to enhance efficiency across the SAF supply chain while reducing logistical bottlenecks.  

Growing demand and production challenges

SAF, derived from non-petroleum feedstocks, offers significant emission reductions. However, its production and distribution remain in the early stages of commercial development. The report reveals that in 2023, SAF accounted for just 0.1% of U.S. jet fuel consumption, with demand far outpacing supply. The first seven months of 2024 saw SAF production reach 62 million gallons, compared to 26 million gallons in all of 2023.

Currently, there are three domestic SAF plants and one international facility supplying the U.S. market, using pathways such as Hydroprocessed Esters and Fatty Acids (HEFA) and Alcohol-to-Jet (ATJ). Expansion of production capacity and infrastructure is essential to meeting ambitious decarbonisation goals.

The blending and logistics dilemma

SAF must be blended with petroleum-based jet fuel before use, adhering toASTM specifications. The report identifies fuel terminals as the optimal blending locations due to existing infrastructure, blending capabilities, and cost-efficiency. Alternative options, such as blending at airports or refineries, are deemed less practical due to logistical and economic constraints.

The report underscores the need for investment in dedicated SAF storage, blending equipment, and logistics infrastructure. A critical recommendation is to enhance the supply chain to support large-scale SAF integration into existing aviation fuel systems.

Regulatory and market support

The report notes growing regulatory and market support for SAF. The United States’ Inflation Reduction Act provides tax credits of up to USD1.75 per gallon for SAF production, and global initiatives such as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) aim to cap emissions at 2020 levels.

SAF represents a transformative opportunity for the aviation sector to reduce emissions. However, scaling production and infrastructure is vital to ensure it can meet the rising demand and contribute meaningfully to decarbonisation targets.