Physical Address
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WHO
Gevo, LanzaJet, Montana Renewables, Neste, World Energy
WHEN
Now
All of the world’s aircraft consumed roughly 100 billion gallons of jet fuel as they cruised the planet in 2024. Only about 0.5% of that was anything other than fossil fuel. That could soon change.
Alternative jet fuels could reduce aviation emissions—which have caused about 4% of global warming to date. These new fuels can be produced from materials such as used cooking oils, crop residues, industrial waste and carbon dioxide from the air. Depending on the source, they can cut emissions in half or almost eliminate them. And they can generally be used in existing aircraft, which could allow rapid climate progress.
More and more governments are now setting targets or legislating to require airlines to start using these alternative fuels (sometimes called sustainable aviation fuels or SAFs). Starting this year, alternative fuels must account for at least 2% of the fuel used at airports in the European Union and Great Britain. This mandate will increase in the coming decades, reaching 70% in the EU by 2050.
Today, almost all commercially available alternative fuels are produced from waste fats, oils and greases. Montana Renewables recently received a $1.44 billion loan from the US Department of Energy to expand one such production facility. However, these materials are still in limited supply.
Companies using other technologies and inputs thrive in scaling up. LanzaJet opened the first commercial ethanol jet fuel production facility in early 2024, with a capacity of 9 million gallons per year. Synthetic fuels made from carbon dioxide could further expand options for airlines, although these fuels are not yet produced on a commercial scale.
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One of the key factors driving alternative jet fuels forward will be cost – on average, SAFs on the market today tend to be nearly three times more expensive than conventional jet fuel. Having more companies making more fuel should help lower the price, although newer fuels could be even more expensive.
