MONTREAL, June 3 (Reuters) - 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, which acquired Monsanto in 2018, said its crop
science 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. ICAO's Carbon Offsetting and Reduction
Scheme for International Aviation (CORSIA), seeks to cap
emissions from international flights at 85% of 2019 levels.
(Allison Lampert in Montreal; Editing by David Gregorio and
Michael Perry)