Airlines Secure Major SAF Deals with New Procurement Platforms

Aviation Industry Accelerates Sustainable Fuel Transition in 2025

The global aviation industry is witnessing a significant surge in sustainable aviation fuel (SAF) procurement as airlines and corporations announce major supplier agreements and adopt new lifecycle assessment methodologies. With the International Air Transport Association (IATA) projecting that SAF could contribute around 65% of the reduction in emissions needed by aviation to reach net zero in 2050, 2025 has become a pivotal year for scaling up production and adoption.

Major Procurement Platforms Launch

IATA has launched the Sustainable Aviation Fuel Matchmaker platform, a central hub designed to connect airlines with SAF producers. The platform addresses critical market inefficiencies by providing transparent information about available volumes, feedstock types, production technologies, and emissions reductions. 'This platform will significantly reduce the time and cost for airlines searching for SAF suppliers,' said an IATA spokesperson. 'By creating a functioning global SAF market, we're taking a crucial step toward our net-zero 2050 goal.'

Meanwhile, the Sustainable Aviation Buyers Alliance (SABA) has launched two distinct procurement streams for 2025. The first is the SAFc Connect Database, a spot procurement model providing members with transparent pricing and flexible access to sustainable aviation fuel certificates. The second stream focuses on next-generation SAF through a Request for Proposal (RFP) targeting e-fuels and advanced biofuels using alternative feedstocks like agricultural residues and municipal waste.

Record-Breaking Corporate Agreements

Microsoft and International Airlines Group (IAG) have extended their SAF purchase agreement for five years, making it the largest and longest Scope 3 SAF agreement to date. Through this deal, Microsoft will co-fund an additional 39,000 tons of SAF, helping reduce its indirect carbon emissions by approximately 113,000 tons. 'This partnership demonstrates how corporations can play a crucial role in accelerating the SAF market,' commented a Microsoft sustainability executive. 'By securing long-term demand, we're providing the certainty producers need to invest in new facilities.'

Shell has also signed a long-term agreement to purchase SAF from Green Sky Capital, securing 100% of the output from Egypt's first commercial-scale SAF plant. The facility, expected to begin operations by end-2027, will produce up to 145,000 tonnes of SAF annually, contributing to a yearly reduction of up to 500,000 tons of CO2 equivalent emissions.

Standardized Lifecycle Assessment Methodology

IATA has released a new methodology for accounting and reporting emissions reductions from SAF use. Developed with input from over 40 airline experts worldwide, this standardized approach provides consistent calculations for SAF's environmental benefits regardless of location, aligning with ICAO's CORSIA framework. The methodology supports both tank-to-wake and well-to-wake emissions factors to meet various regulatory requirements.

'Standardized accounting is essential for building trust in the SAF market,' explained an aviation sustainability analyst. 'Without consistent measurement of emissions reductions, it's impossible to verify claims or compare different SAF options effectively.' This initiative supports the launch of the IATA SAF Registry in April 2025, which aims to create a functioning global SAF market.

Production Challenges and Future Outlook

Despite these advances, SAF production faces significant challenges. According to Wikipedia data, SAF production in 2023 was 600 million liters, representing just 0.2% of global jet fuel use. While production was expected to increase to 1.3 billion liters (1 million tonnes) by 2024, major US production facilities delayed their ramp-up until 2025.

The industry faces feedstock constraints, particularly with the oils and fats known as hydrotreated esters and fatty acids (HEFA), which are crucial for current SAF production. Developers are exploring more readily available feedstocks such as woody biomass and agricultural and municipal waste to produce lower-carbon jet fuel more sustainably and efficiently.

SABA's 2024 procurement successfully secured contracts for nearly 50 million gallons of SAF, channeling $200 million into the market, but only met half of member demand. This supply-demand gap highlights the urgent need for the expanded 2025 initiatives and continued investment in production capacity.

As airlines work toward their goal of using 10% SAF by 2030, the combination of new procurement platforms, standardized accounting methodologies, and major corporate agreements represents a significant step forward in aviation's decarbonization journey. The success of these initiatives will determine whether the industry can meet its ambitious climate targets while maintaining global connectivity.