Sustainable aviation fuel is gaining traction as a viable means to reduce carbon emissions in air travel. A recent initiative by Watershed, a climate solutions provider, is facilitating progress in this area by enabling major companies such as BlackRock, Ripple, Samsara, and Block to purchase sustainable aviation fuel certificates (SAFc). This move allows these organizations to supply sustainable aviation fuel (SAF) for Alaska Airlines flights, aligning with their corporate sustainability objectives while receiving carbon offset credits for their business travel emissions.
In recent years, interest in sustainable aviation solutions has surged, reflecting a growing commitment to decarbonization. Historically, the aviation industry has been slow in adopting SAF due to several barriers, including cost and supply chain challenges. This new collaboration spearheaded by Watershed and its associates marks a significant shift, emphasizing collective efforts to stimulate market growth and investment in cleaner technologies.
What Role Does SABA Play?
The Sustainable Aviation Buyers Alliance (SABA) plays a pivotal role in facilitating the purchase of SAF. Watershed, an aggregator partner of SABA, coordinates these transactions, which form part of a larger initiative announced in April 2024. The project is projected to secure $200 million in SAF certificates, equivalent to 50 million gallons of SAF, over the next five years. These purchases are expected to mitigate approximately 500,000 tons of CO2e emissions, assisted by innovative technologies such as carbon capture and storage.
How Is the Aviation Industry Responding?
The aviation industry is responding to environmental pressures by increasingly engaging in SAF development and use. SAF is derived from renewable or waste feedstocks and is compatible with current aircraft technologies, offering an 80% reduction in carbon intensity compared to conventional jet fuel. Despite these advantages, SAF represents less than 0.5% of the global jet fuel supply and commands a premium price.
According to Claire Kiely, Head of Watershed Marketplace Carbon Supply, Watershed is consolidating customer demand for sustainable aviation technologies, signaling a substantial market interest. The partnership with SABA, SAF suppliers, and airlines aims to foster this sector’s growth. This collaboration represents a strategic move toward broader corporate emissions reduction initiatives.
Diana Birkett Rakow of Alaska Airlines underscores the multifaceted approach needed to address aviation emissions, incorporating business, policy, and financial strategies. The collaboration with companies like Watershed demonstrates a unified effort to scale SAF use, providing essential market demand signals.
As the world continues to grapple with climate challenges, initiatives like Watershed’s SAFc purchases signify a promising step toward reducing aviation emissions. The ongoing commitment from companies and organizations to invest in sustainable solutions is crucial for the future of air travel. While SAF’s current market share remains small, continued investment and innovation could significantly impact the aviation sector’s sustainability goals.
