MONTREAL, June 3 (Rtrs) - Airlines need to reach
long-term agreements to buy bigger quantities of sustainable
aviation fuel if they want to boost global volumes of the
lower-emission fuel required for industry climate targets, a
Bayer executive said on Tuesday.
Airline members of the International Air Transport
Association are sticking to a target of net zero emissions by
2050 despite warnings that carriers will struggle to meet such
sustainability goals due to low production of SAF, which is more
expensive than conventional jet fuel. IATA, which wrapped up a
summit in India on Tuesday, expects the amount of sustainable
aviation fuel produced to double in 2025 to reach 2 million
tonnes, representing 0.7% of airlines' fuel consumption.
While airlines have called for greater action by energy
companies and other partners to boost SAF volumes, Matthias
Berninger, a Bayer executive vice president and sustainability
head, said in Montreal there needs to be more long-term
purchases of the fuel, similar to some commitments in the
renewable energy sector.
Bayer's Monsanto unit sells seeds and pesticides to farmers
who produce crops for biomass-based feedstocks used to develop
biofuels.
"If they (airlines) commit to buy a certain amount over a
certain period of time, we can guarantee that farmers will grow
it and processors will process it," Berninger told Reuters on
the sidelines of the International Civil Aviation
Organization's aviation climate week. "And the question whether
or not that supply meets the market (demand) depends on
long-term purchasing contracts of the airline industry sending a
very clear demand signal comparable to what we have in the
renewable space."
SAF can be produced from plants, used cooking oil or wastes,
among other products.
(Allison Lampert in Montreal; Editing by David Gregorio)