Recent developments
Policy and market signals
Policy moved incrementally. The European Commission allocated EU ETS allowances for SAF use in 2024, providing about €100 million in free allowances plus existing ETS benefits to narrow the price gap. A study by Worley Consulting and IATA concluded that scaling depends mainly on accelerating technology deployment and diversifying pathways, with coordinated policy and investment needed across regions.
Strategy resets
Cost competitiveness and capital discipline triggered pullbacks. BP canceled its Rotterdam SAF facility amid a refocus on oil and gas and weaker-than-expected SAF economics; Shell likewise halted construction of its Rotterdam biofuels plant after determining it would not be competitive. BP signaled a more selective approach, keeping a potential Castellón biofuels expansion under review.
SAF capacity and conversions
Conversely, new capacity moved forward. Axens launched a 100% SAF unit in Asia via a two‑stage revamp. Eni won approval to convert Sannazzaro units using Ecofining, adding HVO and SAF‑biojet output from 2028. Worley will verify FEED for Preem’s Lysekil conversion from fossil diesel to renewable diesel/SAF. ORLEN extended SAF availability to Vilnius, Riga, and Tallinn and is building HVO in Płock.
Project development and tech
Project development continued across routes and geographies: USA BioEnergy selected Johnson Matthey’s FT CANS and Honeywell UOP’s FT Unicracking for a Texas biorefinery with a long‑term airline offtake. KazMunayGas and LanzaJet moved a Kazakhstan SAF plant into FEED. Altalto and NEXTCHEM progressed a waste‑to‑SAF project in Immingham. Velocys partnered with Morimatsu to cut FT reactor cost and lead time.
Value chain positioning
Technology and value‑chain positioning intensified: Technip Energies agreed to acquire Ecovyst’s Advanced Materials & Catalysts business to bolster sustainable fuels and circular chemistry. Enerkem completed financial restructuring to accelerate waste‑to‑methanol and SAF, with the Tarragona Ecoplanta scheduled for 2029. Moeve and the Global Impact Coalition launched a methanol‑based pathway to e‑SAF and low‑carbon chemicals. Greenergy signed a long‑term lease at the Port of Belledune to expand tank storage and rail‑fed distribution.
Heavy transport and shipping
Beyond aviation, alternative fuels reached freight and shipping. Ultra Gas & Energy scaled LNG refueling to 100 Indian stations. Blue Energy Motors secured $50 million to expand LNG and electric heavy trucks. Toray and T2 will trial long‑haul autonomous petrochemical trucking using biodiesel and renewable diesel blends. Yara Clean Ammonia started building the Yara Eyde, an ammonia‑powered container ship. Takeda partnered with VELA to deploy wind‑powered trimaran freight on transatlantic pharma lanes.