Aug 11, 2025

Airline industry struggles to scale sustainable aviation fuel as flagship refinery shuts down and most projects stall.

A Reuters investigation reveals that only a fraction of the 165 sustainable aviation fuel (SAF) projects announced over the past decade have materialized, with World Energy’s flagship SAF refinery in California closing, underscoring systemic challenges that leave airlines far from meeting climate targets.

Reuters details how the airline sector’s push to cut carbon emissions by switching to sustainable aviation fuel is faltering. The Paramount, California refinery of World Energy — once a showcase producing millions of gallons of SAF for United Airlines and JetBlue — quietly ceased operations in April amid cost overruns and lack of industry commitment .  Reuters found that the International Air Transport Association’s goal of using 118 billion gallons of SAF annually by 2050 is far out of reach, as only 36 of the 165 SAF projects announced worldwide have come online, and just ten produce commercial volumes .  Most projects are delayed, abandoned or exist only as credit deals, meaning that even if all pending initiatives succeeded, they would supply just about 10 % of the fuel needed for aviation to hit net‑zero emissions . Industry leaders blame high costs and insufficient feedstocks, while critics argue airlines overstate commitments and rely on unproven technologies . The findings suggest airlines will struggle to meet climate goals without robust government incentives and alternative SAF production pathways Read more.

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