Advancing Sustainable Aviation Fuel (SAF) in the Kingdom of Saudi Arabia: Challenges, Opportunities, and the Path Forward
Propelled by economic diversification efforts under Saudi Vision 2030; a comprehensive government program championed by HRH Crown Prince Mohammed Bin Salman to achieve the goal of increased diversification economically, socially, and culturally; the aviation sector in the Kingdom of Saudi Arabia (KSA) is experiencing rapid growth. With global aviation accounting for approximately 3% of total CO2 emissions [1] [2], and the position of the KSA as a leader in global energy supplies, the KSA faces both an opportunity and a responsibility to pioneer sustainable aviation development (SAF) development. This article briefly explores the current landscape of SAF in the KSA, particularly drop-in liquid SAF, highlighting the challenges, opportunities, and the roadmap for deployment.
The Need for SAF in the KSA
Aviation contributes significantly to the Kingdom’s economy, with the sector generating $53 billion in gross value added in 2023, representing 5.2% of the national GDP [3]. In fact, through the National Aviation Strategy, which is part of the boarder Transportation and Logistics Services Strategy, aviation is considered a strategic enabler for realizing the Saudi Vision 2023 goals by establishing the Kingdom as a hub for tourism and global events, such as World Expo 2030 and FIFA World Cup in 2034. As passenger demand continues to rise, the need for cleaner fuel alternatives becomes more pressing. Taking advantage of the well-established petrochemical infrastructure, SAF presents a viable solution to reduce emissions while sustaining economic growth.
SAF Development in the KSA
While SAF adoption is still in its early stages in the Kingdom, the potential is immense. Due to the desert nature and the harsh weather of the Kingdom, the feedstock availability potential lies in the municipal solid waste agricultural byproducts. These feedstock resources provide a solid foundation for local SAF production. Moreover, used cocking oil (UCO) represents a viable feedstock resource potential, and the successful of SATORP’s in converting UCO into SAF and becomes the MENA region’s first UCO conversion ISCC+ certified could be expanded and implemented in other locations. Pathways technologies such as Hydro-processed Esters and Fatty Acids (HEFA) and Fischer-Tropsch (FT) synthesis could also be viable pathways for SAF production, utilizing the world-class oil and energy infrastructure and repurposing existing manufacturing facilities. These pathways could be enhanced with direct air capture (DAC) and carbon dioxide removal (CDR) technologies [4].
Challenges in SAF Production and Deployment in the KSA
Despite the clear potential for SAF development, production and deployment in the Kingdom, a number of challenges hinders the widespread adoption of alternative fuels and sustainable energy, particularly SAF. While many countries may have similar of such challenges, the case of the KSA could have special challenges due to the following:
High Costs: it is known that SAF production is significantly more expensive that traditional jet fuel, with current prices two to three times higher [5]. The vast yet diverse geographical area that mainly desert (about one-third of the country’s area) could drive the cost of SAF production even higher for establishing SAF supply chains, network distributions and production facilities.
Infrastructure Limitations: existing refining and distribution networks are established for the oil and petrochemical industry. Upgrading to these facilities, establishing new ones, and building the capabilities for SAF logistics is needed.
Policy Gaps: a comprehensive regulatory framework supporting the development and deployment of SAF is necessary in order to establish this new industry of alternative fuel. While there is a possibility that such framework could be under development, a statement from the Saudi official authorities is yet to confirm or deny the work on SAF policy in the Kingdom.
Market Demand: low public awareness of SAF benefits for reducing CO2 emissions and limited airline commitments creates demand uncertainties. Even if government pushed the airlines for SAF through mandates, the potential shift of cost burden from airlines to air travelers could create an instant increase to airfares, especially for the domestic market.
Opportunities and Policy Recommendations
The Kingdom can capitalize on the aforementioned challenges to uncover the following opportunities:
Early Investments: high costs associated with the development, production and deployment of SAF should be met with early investments. The government should lead the way in investing in SAF technologies now to lower production costs for futures use. Also, the government could offer incentives in the form of tax credits, subsidies, and research, development and demonstration (RD&D) funding to attract investments in SAF production facilities. Venture capitals should also be encouraged to invest SAF technologies and support in establishing the new industry.
Embracing SAF: while there is a chance to convert some of the existing refining and distribution networks, this should be contingent with embracing SAF production pathways and locally available, technologically ready feedstock types that could deliver credible emissions reduction.
Sustainability Mandates: implementing SAF blending mandates for airlines operating within the Kingdom. The mandate should be carefully designed with balanced policies to increase SAF adoption, expedite deployment, and sustain the aviation’s sector competitiveness.
International Collaboration and PPPs: collaboration with international SAF producers and technology providers to transfer knowledge and expertise is essential. Public Investment Fund (PIF), the Kingdom’s sovereign investment fund, could be the most suited for building such collaborations with SAF international providers. Similarly, PIF could establish joint ventures between government entities and private sectors to drive innovation and scale production.
SAF Deployment Roadmap for the KSA
To establish the Kingdom as a leader in SAF production in MENA region, a phased roadmap could be developed as follows:
Short-term phase (2025 — 2028): conducting extensive feasibility studies, pilot projects, and policy development. Presumably, the Kingdom could significantly invest to develop the necessary technologies and scale up feedstock production, along with ambitious policies to bridge the gaps between the technologically mature, low-cost fossil fuel and SAF [6]. Newly established airports with sustainability at their core, such NEOM Airport and Red Sea International Airport, provides viable starting pilot project.
Medium-term (2028 — 2035): building production facilities and distribution networks, integrate SAF into domestic airline operations, and establish a regional SAF hub.
Long-term (2035 — 2060): achieving commercial-scale production, export SAF to regional and global markets, and contribute to achieving aviation’s net-zero targets.
Conclusion
Developing and deploying SAF in the Kingdom of Saudi Arabia represents a promising pathway to achieving sustainable aviation futures, considering the leadership of the Kingdom as a global energy supplier. With the right policies, venture investments, global collaboration with global SAF providers, and strategic partnerships with local capabilities, the Kingdom can exploit its strategic position and ample resources to become a regional SAF hub. While this might take years to accomplish and so achieving the net-zero emissions in aviation, yet the Kingdom of Saudi Arabia is well-positioned to take bold steps towards a greener aviation sector.
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References
[1] International Energy Agency (2023). Energy Systems: Transport and Aviation. (https://www.iea.org/energysystem/transport/aviation).
[2] Ritchie, Hannah. (2023) “How much does aviation contribute to climate change? How will this change in the future?”. Sustainability by Numbers. (https://www.sustainabilitybynumbers.com/p/aviation-climate-partone).
[3] General Authority of Civil Aviation (2024): The State of Aviation Report 2024, , Riyadh, Kingdom of Saudi Arabia, Government Report. (https://new.gaca.gov.sa/en/Reports-Categories/The-State-of-Aviation/The-Stateof-Aviation-2024-Report).
[4] ITF (2023), “Sustainable Aviation Fuels: Policy Status Report”, International Transport Forum Policy Report, No. 116, OECD Publishing, Paris.
[5] Bauen, A. et al (2020). “”Sustainable Aviation Fuels: Status, challenges and prospects of drop-in liquid fuels, hydrogen and electrification in aviation”. Johnson Matthey Technology Review, 64, (3), 263-278. (https://doi.org/10.1595/205651320X15816756012040).
[6] Bardon, P. and Massol, O. (2025) “Decarbonizing aviation with sustainable aviation fuels: Myths and realities of the roadmaps to net zero by 2050”. Renewable and Sustainable Energy Reviews, Volume 211,115279. ScienceDirect. (https://doi.org/10.1016/j.rser.2024.115279).