“Despite this positive development, broad 100% SAF usage at scale will take years as significant hurdles remain.” said Rohit Kumar, Assistant Vice President, Diversified Industries. “Technology questions regarding whether modifications to current SAF properties and/or existing aircraft will be required remain unanswered at this stage. In addition, higher cost of the fuel and production bottlenecks are also material challenges”.
We believe SAF will play an important role in the airline sector’s strategy to achieve its long-term decarbonisation targets and credit implication for airlines will depend on the impact from the higher cost of SAFs on air travel demand and airlines’ margins.
This post was published on 27 November 2023 20:50
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