“This SAF voluntary request has not materialized,” said Malinen.
When the Finnish company began to invest in SAF, “we have estimated what demand could be, both compulsory and voluntary,” said Malinen. But the only request comes from the EU’s mandate; Airlines do not buy more.
“The SAF market last year was less than 1 million tonnes, and the kerosene jet fuel market of more than 350 million tonnes, it is therefore a drop in the bucket,” said Malinen.
The company – which says that it has invested around 10 billion euros in SAF, Biodiesel and other types of renewable fuels – ends a refinery expansion in Rotterdam.
“Neste’s ability alone in 2027 (will be) 2.2 million tonnes,” said Malinen, adding that her business could “double” the current SAF European demand. But without voluntary purchase, it is unlikely that it is necessary.
And waiting in the wings is yet another mandate of the EU, this one for the synthetic ESAF which is made with renewable energies and CO2 captured in the air to make a really green fuel. By 2030, 1.2% of aviation fuel will have to be ESAF, but the price is “at least double the cost of SAF,” said Mechelen – more than four times the cost of fossil kerosene.
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