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About Commodity Insights
24 May 2022 | 09:02 UTC
By Andre Agapi and Loren Puette
Fossil fuels' exclusive use in the aviation industry is being challenged by worldwide efforts to decarbonize the industry. The first mandates were introduced in Europe in January 2020 to re-allocate a small share of requirements from jet fuel/kerosene to sustainable aviation fuels, commonly known as SAF. Most SAF is produced through the HEFA process, which uses hydrogen to transform vegetable oil into fuel for airplanes. The use of virgin oil is not allowed in most markets, therefore SAF producers are turning to waste products like used cooking oil. By 2050, the aviation sector has a goal to reduce CO2 emissions by 50% from the 2005 level, using SAF and other forms of emissions reduction and offsetting. Used cooking oil, as the main waste oil, is primed to benefit from that increase in demand.