New year, new mandates: European aviation industry forced to buy greener fuels

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New year, new mandates: European aviation industry forced to buy greener fuels
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Fuel suppliers in UK and EU airports now have to supply a portion of sustainable aviation fuel in departing flights

Hello and welcome to Energy Source, coming to you today from London, where Wednesday was a tense day for Britain’s changing electricity markets. The National Energy System Operator — in charge of keeping the lights on — issued a flurry of notices calling on power generators to increase supply as wind speeds dropped and with import cables already running heavily.

Yet omens last year for future supplies were not good. Even with demand mandates on the horizon, several SAF projects were cancelled or paused due to high costs or strained feedstock supplies. For example, Shell paused building of a planned biofuels plant in Rotterdam in July, citing “market conditions”. In all, nearly 2mn tons of annual SAF production capacity was cancelled or paused during 2024, according to analysis by consultancy Wood Mackenzie.

 

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