Sustainable Aviation Fuel: American Airlines' Path to Decarbonizing Air Travel
American Airlines (AAL) is actively pursuing sustainable aviation fuel (SAF) as a key strategy to decarbonize air travel. The company used nearly 2.7 million gallons of SAF in 2023, a 4% increase from 2022. AAL aims to replace 10% of its jet fuel with SAF by 2030, which is important for meeting its science-based climate targets. The airline is entering offtake agreements with SAF producers and advocating for government support to scale the SAF market.
AAL is also investing in next-generation SAF pathways, including Hydroprocessed Esters and Fatty Acids (HEFA), Alcohol-to-Jet (ATJ), and Fischer-Tropsch (FT) technologies. The company has partnered with Infinium to produce eSAF, which could reduce lifecycle GHG emissions by approximately 90%. This innovative project involves a collaboration with Citi and Breakthrough Energy Catalyst, demonstrating AAL's commitment to advancing sustainable aviation solutions.
American Airlines (AAL) sta attivamente perseguendo il carburante sostenibile per aviazione (SAF) come strategia chiave per decarbonizzare i viaggi aerei. Nel 2023, l'azienda ha utilizzato quasi 2,7 milioni di galloni di SAF, un aumento del 4% rispetto al 2022. AAL mira a sostituire il 10% del suo carburante per aerei con SAF entro il 2030, un passo importante per raggiungere i suoi obiettivi climatici basati sulla scienza. La compagnia aerea sta stipulando accordi di off-take con i produttori di SAF e promuovendo il supporto governativo per scalare il mercato del SAF.
AAL sta anche investendo in percorsi per SAF di nuova generazione, inclusi Estere idroprocessati e acidi grassi (HEFA), da alcool a jet (ATJ) e tecnologie Fischer-Tropsch (FT). L'azienda ha collaborato con Infinium per produrre eSAF, che potrebbe ridurre le emissioni di gas serra nel ciclo di vita di circa il 90%. Questo progetto innovativo coinvolge una collaborazione con Citi e Breakthrough Energy Catalyst, dimostrando l'impegno di AAL nell'avanzare soluzioni di aviazione sostenibile.
American Airlines (AAL) está persiguiendo activamente combustible de aviación sostenible (SAF) como una estrategia clave para descarbonizar los viajes aéreos. En 2023, la compañía utilizó casi 2,7 millones de galones de SAF, un aumento del 4% con respecto a 2022. AAL tiene como objetivo reemplazar el 10% de su combustible de aviación con SAF para 2030, lo cual es importante para cumplir con sus metas climáticas basadas en la ciencia. La aerolínea está firmando acuerdos de compra con productores de SAF y abogando por apoyo gubernamental para escalar el mercado de SAF.
AAL también está invirtiendo en vías de SAF de próxima generación, incluyendo Esteres Hidroprocesados y Ácidos Grasos (HEFA), Alcohol a Jet (ATJ) y tecnologías Fischer-Tropsch (FT). La empresa se ha asociado con Infinium para producir eSAF, que podría reducir las emisiones de gases de efecto invernadero en el ciclo de vida en aproximadamente un 90%. Este innovador proyecto implica una colaboración con Citi y Breakthrough Energy Catalyst, demostrando el compromiso de AAL para avanzar en soluciones de aviación sostenible.
아메리칸 항공(AAL)은 항공 여행의 탈탄소화를 위한 핵심 전략으로 지속 가능한 항공 연료(SAF)를 적극적으로 추진하고 있습니다. 2023년에는 거의 270만 갤런의 SAF를 사용하였으며, 이는 2022년에 비해 4% 증가한 수치입니다. AAL은 2030년까지 항공 연료의 10%를 SAF로 대체할 계획이며, 이는 과학 기반의 기후 목표를 달성하는 데 중요합니다. 이 항공사는 SAF 생산업체와 판매 계약을 체결하고 SAF 시장을 확장하기 위한 정부 지원을 촉구하고 있습니다.
AAL은 또한 차세대 SAF 경로에 투자하고 있으며, 여기에는 수소화 에스터 및 지방산(HEFA), 알코올에서 항공사로(ATJ), 피셔-트롭슈(FT) 기술이 포함됩니다. 이 회사는 인피니움과 협력하여 eSAF를 생산하고 있으며, 이는 생애 주기 온실가스 배출량을 약 90% 줄일 수 있습니다. 이 혁신적인 프로젝트에는 Citi 및 Breakthrough Energy Catalyst와의 협업이 포함되어 있으며, AAL의 지속 가능한 항공 솔루션 발전에 대한 의지를 보여줍니다.
American Airlines (AAL) poursuit activement des carburants d'aviation durables (SAF) comme stratégie clé pour décarboniser les voyages aériens. En 2023, l'entreprise a utilisé près de 2,7 millions de gallons de SAF, soit une augmentation de 4 % par rapport à 2022. AAL vise à remplacer 10 % de son carburant d'aviation par du SAF d'ici 2030, ce qui est essentiel pour atteindre ses objectifs climatiques basés sur la science. La compagnie aérienne entre dans des accords d'achat avec des producteurs de SAF et plaide pour un soutien gouvernemental afin de développer le marché du SAF.
AAL investit également dans des voies SAF de nouvelle génération, y compris les esters et acides gras hydrotraités (HEFA), de l'alcool au jet (ATJ) et les technologies Fischer-Tropsch (FT). L'entreprise a conclu un partenariat avec Infinium pour produire de l'eSAF, qui pourrait réduire les émissions de gaz à effet de serre sur le cycle de vie d'environ 90 %. Ce projet innovant implique une collaboration avec Citi et Breakthrough Energy Catalyst, démontrant l'engagement d'AAL à promouvoir des solutions d'aviation durables.
American Airlines (AAL) verfolgt aktiv nachhaltigen Flugkraftstoff (SAF) als eine zentrale Strategie zur Dekarbonisierung des Luftverkehrs. Im Jahr 2023 hat das Unternehmen fast 2,7 Millionen Gallonen SAF verwendet, was einem Anstieg von 4% im Vergleich zu 2022 entspricht. AAL strebt an, bis 2030 10% seines Flugzeugtreibstoffs durch SAF zu ersetzen, was wichtig ist, um seine wissenschaftlich fundierten Klimaziele zu erreichen. Die Fluggesellschaft geht Abnahmevereinbarungen mit SAF-Produzenten ein und setzt sich für staatliche Unterstützung zur Skalierung des SAF-Marktes ein.
AAL investiert auch in nachhaltige SAF-Pfade der nächsten Generation, einschließlich hydroverarbeiteten Estern und Fettsäuren (HEFA), von Alkohol zu Jet (ATJ) und Fischer-Tropsch (FT) Technologien. Das Unternehmen hat eine Partnerschaft mit Infinium gegründet, um eSAF zu produzieren, was die Treibhausgasemissionen im Lebenszyklus um etwa 90% reduzieren könnte. Dieses innovative Projekt beinhaltet eine Zusammenarbeit mit Citi und Breakthrough Energy Catalyst, die das Engagement von AAL zur Förderung nachhaltiger Luftfahrtlösungen demonstriert.
- American Airlines used 2.7 million gallons of SAF in 2023, a 4% increase from 2022
- The company aims to replace 10% of its jet fuel with SAF by 2030
- AAL is entering offtake agreements with SAF producers to secure supply
- Partnership with Infinium to produce eSAF with potential 90% lifecycle GHG emissions reduction
- Collaboration with Citi and Breakthrough Energy Catalyst to support innovative SAF projects
- Current SAF usage is still a small portion of what's needed to achieve the company's 2030 goal
- The SAF market needs to achieve a nearly 100% compound annual growth rate to meet industry goals
- SAF is not yet available at the scale or price needed for widespread commercial use
- The SAF blenders tax credit expires at the end of 2024, potentially impacting future SAF adoption
Insights
American Airlines' commitment to Sustainable Aviation Fuel (SAF) represents a significant step towards decarbonizing air travel. The company's goal to replace 10% of jet fuel with SAF by 2030 is ambitious but faces challenges. The 4% increase in SAF usage in 2023 shows progress, but scaling up remains difficult due to availability and high costs.
The airline's multi-faceted approach, including offtake commitments and advocacy for government incentives, demonstrates a comprehensive strategy. However, the need for a 100% compound annual growth rate in SAF production to meet industry goals highlights the enormity of the challenge. The focus on next-generation SAF pathways like Alcohol-to-Jet and Fischer-Tropsch shows forward-thinking, but commercialization hurdles persist.
American's partnership with Infinium for eSAF production is particularly promising, potentially reducing lifecycle GHG emissions by
American Airlines' SAF initiative is a critical move in an industry under increasing pressure to reduce its carbon footprint. The airline's 2023 usage of 2.7 million gallons of SAF, while a small fraction of total fuel consumption, positions it as a leader in sustainable practices. However, the gap between current usage and the 2030 goal is substantial, indicating potential financial and operational challenges ahead.
The company's involvement in initiatives like Breakthrough Energy Catalyst and advocacy for policy support demonstrate a recognition that industry-wide collaboration is crucial. The development of U.S. Airline Principles on Use of Book and Claim in SAF Accounting is a positive step towards creating a more robust SAF market.
The focus on various SAF pathways (HEFA, ATJ, FT) shows a diversified approach to future-proofing fuel sources. However, each pathway faces unique obstacles, from feedstock constraints to commercialization difficulties. The success of American's strategy will largely depend on technological advancements and supportive policy environments in the coming years.
American Airlines' SAF strategy presents both opportunities and risks for investors. The airline's proactive stance on decarbonization could provide a competitive edge as environmental regulations tighten and eco-conscious consumers make travel choices. The partnership with Infinium and the innovative agreement with Citi demonstrate the potential for creating new revenue streams and strengthening corporate partnerships.
However, the significant investment required to scale SAF usage could pressure profitability in the short to medium term. The reliance on government incentives and policy support adds an element of political risk. Investors should closely monitor the expiration of the SAF blenders tax credit in 2024 and its potential impact on SAF economics.
The company's transparent approach to SAF sourcing principles and emissions accounting is commendable from an ESG perspective. This could potentially attract sustainability-focused investors and improve the company's ESG ratings. However, the slow pace of SAF adoption industry-wide and the challenging growth targets suggest that investors should maintain realistic expectations about the timeline for significant emissions reductions and financial returns from these initiatives.
Originally published in American Airlines' 2023 Sustainability Report
NORTHAMPTON, MA / ACCESSWIRE / August 13, 2024 / American Airlines
Sustainable Aviation Fuel
The clearest near-term way to decarbonize aviation based on current technological developments is by transitioning to sustainable aviation fuel (SAF). The SAF available on the market today can reduce life cycle GHG emissions by up to
How American is helping accelerate solutions
Purchasing and helping scale SAF production is a core part of American's climate strategy this decade. For example, we anticipate SAF will be key to achieving the insector reductions required to meet our science-based target for 2035, and we have set a goal to replace
American is entering into offtake commitments with SAF producers to help secure the supply we need to achieve our goal. We're also working to advance the SAF market as an anchor member of Breakthrough Energy Catalyst, which invests in new decarbonization technologies. (See page 19 to read about our innovative agreement with Infinium.) Additionally, we continue to advocate for governments to deploy policy tools - including incentives, credits and investments in research - to help scale the SAF market.
The need for concerted action to scale the SAF market
The availability of SAF increased in 2023, but to reach the industry's goal of producing 3 billion gallons of cost-competitive SAF in 2030, the market needs to achieve a nearly
Advancing Next-Generation SAF Pathways
Achieving the decarbonization potential of SAF will be a journey, with the feedstocks that are available today being replaced over time with more efficient ones that provide greater reductions in life cycle emissions.
The past year has seen some progress, including the creation of U.S. Airline Principles on Use of Book and Claim in Sustainable Aviation Fuel Accounting, which provides a robust market mechanism for efficiently connecting SAF buyers and producers. The enactment of a SAF purchase tax credit in Illinois and the release of U.S. Treasury Department guidance on implementation of the SAF blenders tax credit (BTC) - enacted in the Inflation Reduction Act of 2022 - are further evidence of U.S. policy moving in the right direction, although the SAF BTC expires at the end of 2024. The advocacy efforts of initiatives such as the Low Carbon Fuels Coalition, the Center for Climate and Energy Solutions (C2ES) SAF working group and the SAF Coalition - all initiatives in which American participates - have and will continue to be key in driving policy progress.
Hydroprocessed Esters and Fatty Acids
Hydroprocessed Esters and Fatty Acids (HEFA) is the only SAF process producing jet fuel at scale today, but the supply of HEFA feedstocks - particularly used cooking oil and animal fat - is constrained and there are concerns that demand for these feedstocks could have other indirect environmental impacts.
Alcohol-to-Jet
Alcohol-to-Jet (ATJ) technology relies on ethanol as a feedstock to produce SAF, but it is not yet available at scale for commercial use by airlines. New feedstocks, farming practices and production processes offer the potential to significantly reduce ATJ GHG emissions compared to those that exist today, but they could potentially increase cost.
Fischer-Tropsch
Fischer-Tropsch (FT) gasification has the potential to produce SAF that virtually eliminates GHG emissions while also using waste products, like municipal solid waste, as a feedstock. FT can also use CO2 captured from industrial emissions - and one day CO2 removed from the atmosphere - but that process is still very expensive. While FT is a proven technology in other applications, successfully commercializing it for aviation has been difficult.
American's SAF Sourcing Principles
In determining what SAF to source for our operations, we apply the following standards for sustainability:
Life cycle GHG emissions reductions of at least
50% , inclusive of estimated indirect land use change, compared with conventional jet fuelAnalyze environmental and social impacts of SAF feedstocks, such as potential effects on food supply and land use
Achievement of sustainability certification, or completion of our own due diligence when certification is not practical2
Our SAF use and advocacy is also guided by the following principles:
Maintain strict adherence to jet fuel safety and performance standards
Engage and collaborate with stakeholders across the private and public sectors to break down barriers to SAF production and distribution
Undertake robust and transparent emissions accounting and work within our industry to further develop and harmonize SAF emissions accounting
Raising the Bar on SAF
Infinium is a U.S.-based provider of electrofuels - also known as eFuels. It is producing a sustainable aviation fuel, eSAF, by converting waste CO2 , water and renewable power into clean-burning aviation fuel
Infinium eSAF has the potential to reduce life cycle GHG emissions by approximately
The company plans to repurpose an existing brownfield gas-to-liquids project in West Texas into a first-of-its-kind, commercial-scale Power-to-Liquids (PtL) eFuels facility to produce eSAF. In 2023, Breakthrough Energy Catalyst announced its commitment to invest
This innovative technology will be further supported by a second agreement between banking leader Citi and American, in which American will transfer the associated emissions reduction from the Infinium eSAF directly to Citi - enabling Citi to reduce a portion of its Scope 3 emissions generated by employee travel. Citi is also a partner of Breakthrough Energy Catalyst.
These novel agreements are critical enablers of further investment in Infinium's facility.
1 https://afdc.energy.gov/fuels/sustainable-aviation-fuel
2 As part of our due diligence, we refer to the United Nations Food and Agriculture Organization's Guidance for Responsible Agricultural Supply Chains and other leading references to help mitigate and manage the sustainability risk of SAF produced using bio-based feedstocks.
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