Market Uptake of Sustainable Aviation Fuel : An Investigation of how Swedavia can Contribute to Market Uptake of SAF

Abstract: Previous studies have claimed a deadlock between fuel producers, airlines and policymakers when it comes to the market uptake of Sustainable Aviation Fuel (SAF). This report investigates the market from a stakeholder perspective, including producers, distributors, purchasers and logistic holders. Obstacles in terms of market maturity are identified as mainly the price gap between Conventional Aviation Fuel (CAF) and SAF. This is due to many things, whereas one being the detachment between travellers and the usage of SAF. It is also the current blend restriction of a maximum of 50 %, as well as extensive and expensive certification processes. Currently, there are few, but a lack of policies and incentives directed towards SAF and a lack of coherency between those that exist and are being implemented. Stakeholders agree that there is a need for developing these, as well as a need for additional financial support during stages of developing production facilities. When it comes to procurement of SAF, stakeholders agree upon that flexibility within different areas are advantageous for the market uptake of SAF, and in most regards, the procurement made by Swedavia is indeed flexible. An important aspect identified in the analysis of Swedavia’s procurement is the use of a business model which reduces the price gap between CAF and SAF for airlines and enabling Swedavia to claim the CO2 reduction of corporate travel. Multiple corporates joined the previous procurement of SAF for corporate travel, and Swedavia holds great opportunities to continue to contribute to the market uptake of SAF by expanding the concept. Multiple opportunities also lie in expanding the business concept to reach all travellers. Concluding, it is established that the current route, mainly referring to the procedure of procurement, is effective and carries great opportunity for further implementation and development.