Jet Fuels

Industry Outlook and Investment Opportunities

INTRODUCTION The aviation industry is responsible for roughly 2% of global emissions, and it has recently committed to halving net CO2 emissions by 2050 compared to their 2005 levels. Although some airlines are pursuing carbon offsetting programmes, many are investing in alternative fuels that are less carbon intensive.

Before the COVID-19 crisis, estimates showed airlines were likely to have to spend between $5 billion and $22.5 billion a year globally on carbon credits by 2035. This represents an enormous sum of money that might otherwise be invested in emissions savings projects, such as electric planes and alternative fuels. This, coupled with the fact that global carbon emissions from commercial flights are rising up to 70% faster than predicted, will require airlines to find sources of alternative fuel.

HIGHLIGHTS Alternative jet fuels, such as biofuel, are already produced and used on a commercial scale:

2019 saw roughly 5 million gallons of biofuel produced.

Biofuel remains a small fraction (<1%) of the total amount of jet fuel used . . … read the full report here

Read the full report here