Major oil and gas companies are increasing their investments in the biofuels sector, with a focus on sustainable aviation fuel (SAF). According to a report by consultancy Rystad, 43 projects are expected to be operational by 2030, with a combined production capacity of 286,000 barrels per day (bpd).
The report highlights investments by industry giants such as ExxonMobil, Chevron, BP, Shell, TotalEnergies, and Eni. BP leads the pack with the largest announced production capacity, reaching a combined 130,000 bpd.
SAF is produced from waste and residue, such as used cooking oil or organic crops, and emits the same amount of carbon dioxide as kerosene when burned. However, it is considered less polluting due to its production from leftovers or plants rather than newly drilled oil, which releases additional greenhouse gases.
Strategic acquisitions, such as BP’s purchase of Bunge Bioenergia and Chevron’s takeover of Renewable Energy Group, have strengthened oil majors’ positions in this space. Despite its higher cost compared to petroleum-based jet fuel, SAF uptake is gaining momentum. Government mandates are driving investments, with the European Union requiring a minimum of 2% of SAF use in aviation by 2025, and the Biden White House aiming to meet all U.S. aviation fuel demand with SAF by 2050.
In the Middle East, several companies have also invested in sustainable aviation fuel. For example, Saudi Aramco has partnered with TotalEnergies to develop a SAF production facility in Saudi Arabia. The facility is expected to produce 30,000 bpd of SAF, which will be used to power flights in the region.
Another example is Emirates, which has partnered with GE Aviation to develop a SAF production facility in the United Arab Emirates. The facility is expected to produce 20,000 bpd of SAF, which will be used to power Emirates’ flights. Qatar Airways has also invested in SAF, partnering with Shell to develop a SAF production facility in Qatar. The facility is expected to produce 15,000 bpd of SAF, which will be used to power Qatar Airways’ flights.
