Connecting the dots: establishing SAF supply chains for net-zero aviation
Raman Ojha
President
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Shell Aviation
Connecting the dots: establishing SAF supply chains for net-zero aviation
Aviation connects people, cultures, and businesses worldwide, serving as a cornerstone of the global economy. However, it also accounts for approximately 2% of global energy-related CO₂ emissions [1]. As other sectors such as road transport and power generation decarbonise more rapidly, aviation’s share of global emissions is expected to rise.
Sustainable aviation fuel (SAF) holds the greatest potential to decarbonise air travel and align with the International Civil Aviation Organization’s (ICAO)* long-term aspirational goal of achieving net-zero emissions by 2050. However, scaling SAF adoption requires a coordinated effort across the industry, supported by:
Policy frameworks that incentivise demand and investment.
Enhanced supply chain infrastructure to ensure global access to SAF.
Innovative solutions to overcome current limitations in physical supply
Policy - a catalyst for SAF demand
A stable and sustained demand for SAF is key to scaling its production and supply. Policy mandates—requiring a certain percentage of SAF in aviation fuel—are essential in creating guaranteed demand. The industry is making progress in this area. In the UK and the EU, for example, mandates requiring 2% SAF usage will take effect in 2025, scaling to 10% in the UK [2] and 6% in the EU by 2030 [3]. While these mandates are a welcome development, swift clarity on implementation is needed as these policies enter into force.
Mandates alone are not enough. Policy frameworks must also include incentives to address the affordability challenge associated with SAF, such as the EU ETS SAF fund; this is a welcome mechanism to support SAF affordability which we believe should be expanded as far as possible. Price stability is crucial for driving adoption, and policies must encourage collaboration across the aviation value chain—including airlines, airports, fuel producers, and suppliers—to ensure simultaneous progress in supply and demand.
Enhancing supply chain – laying the foundation for a global SAF supply chain
SAF supply is concentrated at specific locations, and this creates logistical challenges in delivering SAF to airports around the world. To address this, significant investments in infrastructure are needed to enable the blending, transportation, and distribution of SAF.
At Shell Aviation, we’re working closely with customers to establish a supply chain capable of large-scale SAF deliveries. For instance, earlier this year, we supplied SAF to Jet2 and Ryanair at London Stansted and Emirates at London Heathrow. This marked Shell’s first SAF delivery in the UK and expanded our global SAF reach to 10 countries.
These deliveries were made possible through our Shell Haven blending facility, where neat SAF is blended before being transported to airports and injected into the fuel network. With current regulations capping SAF usage at 50% of total fuel [4], blending capabilities are a vital component of the supply chain.
Shell’s long-standing expertise in jet fuel logistics enables us to efficiently move SAF in bulk from production facilities to blending hubs and onward to airports. Our established relationships with airlines, airports, and other stakeholders across the aviation value chain position us as a key enabler in scaling SAF adoption.
Innovative solutions - empowering wider access to SAF
Overcoming the complexities of the SAF supply chain is no small feat. It requires collaboration across the aviation ecosystem—airlines, airports, suppliers, policymakers, and others must work together to move SAF from production facilities to fuelling flights.
This collaborative effort is central to Shell Aviation’s mission. By working with forward-thinking customers and partners, we’re taking steps to improve access to SAF worldwide. Through our extensive refuelling network, infrastructure, and industry connections, we aim to facilitate more SAF deliveries and provide airlines with the fuel options they need to reduce emissions.
Developing a robust SAF supply chain is crucial, but it’s just one part of the broader effort to decarbonise aviation. To overcome the limitations of physical supply, innovative solutions like book and claim systems are essential. These mechanisms allow customers to purchase the environmental attributes of SAF even when it isn’t available at their departure airport, helping to drive demand and support SAF adoption on a global scale.
It’s book and claim solutions, such as Shell’s Avelia platform, that are enabling the aviation industry to expand access to SAF’s environmental benefits and accelerate the journey to netzero emissions.
Cautionary note: https://www.shell.com/investors/disclaimer-and-cautionary-note.html
References:
[1] IEA. https://www.iea.org/energy-system/transport/aviation
*ICAO is the key international body overseeing international aviation under the United Nations. Emissions from international flights that can be missed in national emissions reduction strategies under the Paris Agreement are in scope of the ICAO.
[2] GOV.UK. https://www.gov.uk/government/news/greener-flights-ahead-for-uk-aviation
[3] Deloitte. https://www.deloitte.com/uk/en/Industries/financial-services/blogs/sustainableaviation-fuels.html