IATA: Scaling e-SAF should focus on 'countries with the highest potential to enter the market'

IATA stated (20-Feb-2026) electrolytic sustainable aviation fuel (e-SAF) projects should be developed in regions where renewable electricity is more abundant and affordable, as electricity can account for up to two thirds of production costs. Details include:

• 40 of the 46 announced commercial scale e-SAF facilities are in Europe, where "the average levelised cost of renewable electricity is among the highest globally". Nordic countries are potential exceptions as relatively low cost electricity markets;
• There is a "glaring dearth of announced projects" in countries and regions with "significant untapped potential and lower renewable electricity costs", such as Brazil, India, the Middle East and North Africa;
• e-SAF is expected to account for more than 40% of SAF needs by 2050, but no commercial scale e-SAF facilities are currently in operation. IATA added: "The risk of insufficient supply, particularly by 2030, is increasing". Progress is hindered by high capital investments and production costs, which can be up to 12 times higher than conventional aviation fuel.

IATA stated: "e-SAF project announcements seem to be driven primarily by the mandates in the EU and the UK rather than by project economics. As a result, no commercial scale e-SAF projects in Europe have progressed to a final investment decision (FID), and globally, only one project has reached FID to date and is under construction in the US". The association concluded: "Scaling affordable e-SAF supply should focus on enabling countries with the highest potential to enter the market. Developed economies should also boost their renewable energy production to lower their costs and make their planned production economically viable". [more - original PR]