Turning Challenge into Opportunity 2025

Page 10 of 79 · WEF_Turning_Challenge_into_Opportunity_2025.pdf

Additionally, it is necessary to promote new production pathways or reassess those already approved to increase current blending ratios where allowed. Government policy should support R&D into advanced SAF pathways and innovative conversion technologies, building on the work of existing SAF clearing houses and industry expertise. For example, in 2025 the UK approved fuel specifications that increase blending rates from 5% to 30% for co-processing SAF technology (processing renewable or waste- derived feedstocks together with conventional petroleum streams), which can now be blended with jet fuel.10 As the process to secure fuel certification is both mandatory and laborious (it can take years), cross-industry collaboration and rapid approvals are needed to accelerate the development, testing and use of novel SAF production pathways that can achieve greater blend rates. In addition, market-driven mechanisms such as book-and- claim can facilitate market liquidity and flexibility in meeting decarbonization targets, while reducing the cost burden on buyers.11 If book-and-claim were to allow the vast majority of SAF to be used in specific locations, this would indirectly stimulate the collaboration, technological innovation and infrastructure investment needed to move beyond current blending limitations. Insight: Storage requirements What we heard Effective blending requires multiple storage tanks for mixing and quality testing, but producers only deliver small batches of SAF periodically.Why it matters Segregated SAF storage is logistically complex and costly but necessary. Currently, the size of fuel tanks exceeds the storage needed by SAF deliveries, forcing SAF producers to increase the unit cost to cover unneeded storage. In turn, SAF storage and delivery become inconsistent and expensive. Smart solutions The development of modular, scalable storage units with a tailored approach towards accommodating smaller SAF batches and varying pathways (e.g. HEFA vs. PtL) would enable flexible infrastructure upgrades without full-scale tank conversions. Similar to the potential action noted above to address challenges in blending ratios, coordinated policy approaches are needed between regulatory bodies and ecosystem members to incentivize and catalyse modular storage R&D and uptake until technical and economic viability are achieved. Insight: Traceability and fuel delivery points What we heard Digitalization could streamline chain-of-custody auditing and enable robust book-and-claim systems. This can bring benefits to both physical traceability of SAF, where physically possible and required by different standards and traceability of the credentials associated with the original neat SAF when fuel is blended and moved along the supply chain, especially when book-and-claim systems are introduced. Turning Challenge into Opportunity: Supplier Voices from Heavy-Emitting Sectors 10
Ask AI what this page says about a topic: