SAF price spike exposes supply chain fragility in aviation's decarbonization strategy
By
Hillary Remy
Summary
The article examines how a global energy shock in early March caused sustainable aviation fuel (SAF) prices in California to spike to an all-time high of $8.85 per gallon, exposing the fragility of the supply chain behind green aviation's primary decarbonization strategy. It reveals that SAF production relies heavily on feedstocks like used cooking oil and agricultural waste, which are subject to the same market volatility as traditional fossil fuels, and that current supply is insufficient to meet even a fraction of global aviation demand. The piece argues that the price surge undermines the industry's narrative that SAF is a ready solution, highlighting structural vulnerabilities in production capacity, feedstock availability, and cost competitiveness that could delay meaningful decarbonization.
Source
bskySAF price spike exposes supply chain fragility in aviation's decarbonization strategybit.lyKey quotes
· 3 pulledSAF prices in California hit an all-time high of $8.85 per gallon in the week ended March 4, a surge of more than $1.32 in a single week.
The price spike pulled back the curtain on something the industry had been managing around for years: Sustainable aviation fuel runs on a fragile supply chain.
The aviation industry has spent years making the case that sustainable fuel is the path to decarbonization. In early March, a global energy shock made that case in a way no industry conference ever could.
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