WHAT IS IT?
Sustainable Aviation Fuel (SAF) is a jet fuel produced from renewable or waste-based feedstocks rather than fossil crude oil. It is chemically compatible with conventional jet fuel (Jet A-1) and can be used in existing aircraft engines without modification — hence 'drop-in'.
PRODUCTION PATHWAYS
HEFA (Hydroprocessed Esters and Fatty Acids): Most commercially available today. Made from vegetable oils, animal fats, or UCO via hydrotreatment — essentially the same process as HVO but with additional conversion steps. Currently blended up to 50% with fossil jet fuel.
AtJ (Alcohol-to-Jet): Ethanol or isobutanol converted to jet fuel. Higher cost, smaller scale.
Gasification/FT (Fischer-Tropsch): Biomass or waste gasified and converted via FT synthesis. Long-term pathway.
Power-to-Liquid (PtL): Green hydrogen + CO₂ → synthetic jet fuel. Future technology, very expensive now.
FEEDSTOCKS FOR HEFA-SAF
UCO (highest sustainability credit)
Animal tallow
Palm fatty acid distillate (PFAD)
Camelina oil
Corn/soybean oil (lower sustainability credit)
KEY USES
Exclusively used as aviation fuel — blended up to 50% with conventional Jet A-1.
REGULATORY DRIVERS
EU ReFuelEU Aviation: Mandates 2% SAF blend by 2025, rising to 70% by 2050
CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation): ICAO scheme
UK SAF mandate: 10% by 2030
Singapore SAF mandate growing
TRADE CORRIDORS
Producers: Neste (largest globally), World Energy, TotalEnergies, Shell
Buyers: Airlines globally — Singapore Airlines, Lufthansa, United, British Airways
Tetra relevance: Singapore is a growing SAF hub given Neste Singapore refinery and Changi Airport's sustainability commitments.
PRICING
Premium product — 3–5× fossil jet fuel price. Priced by bilateral agreement or ARGUS/ICIS assessments. Market growing rapidly but still niche vs total jet fuel demand.
CERTIFICATION
ISCC CORSIA or RSB CORSIA certification required for CORSIA compliance. ISCC EU for EU ReFuelEU mandate.