IATA believes price of SAF is starting to make sense

November 23, 2022 |

In the UK, TTG reported that the head of the International Air Transport Association (IATA), Willie Walsh, considered that the current price of SAF is beginning to make sense.

Speaking at the Airlines 2022 conference, Walsh said SAF last week was priced around 1.6 times that of conventional kerosene. “It has been four or five times; we are seeing the economics make a lot more sense,” the executive was quoted as saying.

“It probably averaged 2.7 times in 2021/22 and every single drop was bought by airlines. There will be a premium for SAF, but it is a premium airlines will pay,” Walsh added.

The executive also criticized oil firms for the delays to start production of SAF and for wanting guarantees there would be customers for the biofuel. “Shell should have been producing SAF 15 years ago. The idea they need a guarantee… did they get a guarantee when they started drilling oil out of the ground? I don’t think they did. It is a product every airline will have to use.”

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