With the aviation industry pushing toward net-zero emissions by 2050, sustainable aviation fuel (SAF) has emerged as a key solution. Despite its potential, SAF still accounts for less than 1% of total global jet fuel consumption, underscoring the urgent need to scale production. As the world’s leading SAF producer, Neste is at the forefront of efforts to bridge this gap and drive sustainable aviation forward.

“SAF is a key lever to decarbonise aviation, but its current production capacity is limited,” says Alexander Kueper, Vice President Renewable Aviation Business at Neste. “We simply don’t have the luxury to wait anymore. This requires action and cooperation across the whole aviation ecosystem, including airlines, airports, fuel producers, governments, businesses using aviation for travel and cargo, and even individual travellers.”

Scaling SAF production: Meeting global demand
Neste is rapidly expanding its SAF production capacity to meet growing global demand. “Neste is the world’s leading producer of SAF with a current SAF production capability of 1 million tons per annum, which is roughly 1.25 billion litres,” says Kueper. “This will increase to 1.5 million tons per annum once the modification to our existing Rotterdam refinery in the Netherlands is completed this year, and further to 2.2 million tons after the ongoing expansion of our refinery in Rotterdam.”

With production facilities in Finland and Singapore, Neste operates the world’s largest SAF production facility in Singapore, enabling the company to serve customers in the Asia-Pacific region and beyond. However, scaling production remains a challenge. “Governments play a crucial role in creating a market and demand for SAF, as demand certainty is needed to attract investment into new production capacity,” Kueper explains.

Driving adoption: Partnering with airlines & expanding infrastructure
Neste has partnered with numerous airlines and logistics companies worldwide to integrate SAF into operations. “A good example is our cooperation with Singapore Airlines, to which we supplied SAF at Changi Airport last year, produced at our Singapore refinery and supplied into the airport via our integrated supply chain in the country,” shares Kueper.

Beyond airlines, Neste is deepening its collaboration with logistics companies. “A more recent example is the further strengthening of our existing cooperation with DHL Group, to which we already supply SAF, but with whom we will develop a holistic, joint approach to tackling GHG emissions in transportation, both by air and by road,” he adds.

To enhance SAF accessibility, Neste is expanding fuel availability at major airports. “Neste has its own SAF supply capabilities at a selected number of international airports such as Amsterdam, San Francisco, and Singapore but is working together with partners to enable access to SAF at other airports across the globe—for example, with ITOCHU in Japan or Signature Aviation and Avfuel in the US,” says Kueper.

While SAF is currently blended up to 50% with conventional jet fuel, Neste is actively working toward 100% SAF certification. “For example, our cooperation with Airbus and Rolls Royce is researching the impact of using 100% SAF on aviation emissions,” he notes.

Policy & market dynamics: Unlocking SAF’s full potential
Government support is crucial in accelerating SAF adoption, particularly through policies like the EU’s ReFuelEU Aviation regulation and the UK SAF mandate, which require airlines to incorporate a minimum percentage of SAF into their fuel mix. “Both have started with 2% in 2025, with the EU increasing to 6% in 2030 and the UK to even 10% by 2030,” Kueper explains.

Countries in the Asia-Pacific region are also moving towards similar mandates. “We see governments in Japan and Singapore implementing or developing similar policies,” he adds. “The availability of SAF to support the European mandates is there, with Neste alone increasing its SAF production capability to 1.5 million tons per annum this year, and we are not the only producer around.”

Global policy alignment is another critical factor. “Aviation is a global industry, introducing the need for global alignment. It is positive that ICAO has set an intermediary target for international aviation to be 5% less carbon-intensive by 2030, through the use of SAF,” Kueper highlights.

The next generation of sustainable aviation fuels
While SAF is currently the most viable alternative to conventional jet fuel, Neste is also exploring future technologies such as Power-to-X. “SAF is basically a category of more sustainable fuels that can be produced from non-fossil sources in several ways,” explains Kueper. “Neste uses HEFA technology, which is currently the only commercially viable technology. Most of the SAF produced globally today is HEFA-SAF.”

Other production pathways, such as alcohol-to-jet, are scaling, while Power-to-Liquids technology, which combines green hydrogen and captured carbon to produce synthetic fuel, is in early development. “Neste is not only looking into these future technologies but also into new future raw materials such as novel vegetable oils and lignocellulosic residues,” Kueper adds.

The circular economy also plays a major role in Neste’s strategy. “SAF is already a good example of circularity, as we’re reusing carbon already in the atmosphere for its production via the raw materials used,” he says. Expanding feedstock availability will be crucial for ramping up production. “Independent reports like the World Economic Forum/Clean Skies of Tomorrow report estimate the global availability of waste and residue oils and fats to exceed 40 million tons by 2030. This will provide enough raw material to significantly ramp up SAF production,” he notes.

The road ahead for Neste and the aviation industry
Neste’s sustainability roadmap is ambitious. “As far as SAF is concerned, the future milestones will be increasing our SAF production capability, first to 1.5 million tons per annum and then further to 2.2 million tons per annum,” says Kueper. “This will support mandates but also voluntary demand from businesses aiming to reduce emissions from their business travel and transport.”

Beyond SAF, Neste has set broader climate and sustainability targets. “We aim to support our customers in reducing their GHG emissions by 20 million tons per annum by 2030. We are well underway, having passed the 12 million tons mark,” he adds. “Additionally, we are working towards carbon-neutral production by 2035 and have set aspirational targets for climate, biodiversity, human rights, as well as our supply chain and raw materials.”

Neste’s push for sustainable aviation extends beyond just increasing SAF production—it’s about reshaping the entire industry’s approach to decarbonisation. With growing policy support, expanding airline partnerships, and ongoing advancements in alternative fuels, the company is driving the aviation sector closer to a low-carbon future. While challenges remain, Neste’s commitment to scaling SAF, broadening feedstock availability, and pioneering new technologies positions it as a key player in transforming aviation for generations to come.

This story was first published in the January-February 2025 issue of Payload Asia.