Airlines called sustainable fuel the future. When an energy crisis broke out, barely any was around

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Airlines are struggling to secure sustainable aviation fuel (SAF) as the war in Iran pushes kerosene prices up
• Despite being promoted as the future of lower-carbon flying, SAF accounted for just 0.6% of global jet fuel consumption in 2025
• Production remains constrained by high costs, limited infrastructure, and reliance on startups rather than major oil refiners

🔭 The context: SAF is largely derived from used cooking oils, animal fats, and captured CO₂, with second- and third-generation fuels expected in the future
• EU and UK mandates now require 2% SAF in jet fuel, increasing over time toward 70% by 2050. U.S. production is growing but remains far below the 3-billion-gallon goal set by the 2021 federal target
• High prices and supply constraints prevent SAF from acting as a buffer during global energy shocks

🌍 Why it matters for the planet: Low SAF penetration limits the aviation sector’s ability to reduce greenhouse gas emissions, leaving flights heavily reliant on fossil fuels
• Scaling SAF production could cut carbon emissions from air transport, which is one of the hardest-to-decarbonize sectors, and enhance energy security by diversifying away from oil imports

⏭️ What’s next: Major airlines are investing in SAF partnerships, battery storage, and carbon capture-based fuels
• Policymakers may need to expand incentives and infrastructure to make SAF production commercially viable, enabling airlines to use it as a meaningful emissions reduction tool in the near term

💬 One quote: “When you have an oil shock like we’re currently facing, ideally SAF is a buffer against that. Where we are today, because volumes are so small, we’re not at a point where SAF can play that role.” – Kevin Welsh, Chief Sustainability Officer, Airlines for America

📈 One stat: Global SAF production in 2025: approximately 2 million tons (total jet fuel consumption: ~300 million tons)

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