Co-processing can help Middle East become sustainable aviation fuel hub: IATA official

Arab News

4 days ago

NEW DELHI: The Middle East has all the potential to emerge as a global hub for sustainable aviation fuel production thanks to co-processing opportunities available in the region, according to a top official.
Speaking to Arab News on the sidelines of the International Air Transport Association's Annual General Meeting in New Delhi, Marie Owens Thomsen, senior vice president of sustainability and chief economist at IATA, said that the world should act now to increase the production of SAF to meet decarbonization targets.
This comes as the region accelerates efforts to produce the fuel, with Saudi Arabia's Nordic Electrofuel-backed project announcing in January a Jubail plant targeting 350 million liters annually by 2029, using renewable hydrogen and solar PV.
The UAE, meanwhile, aims for 700 million liters by 2031, supported by Emirates, Etihad, and Air Arabia. Emirates has secured over 3 million gallons from Neste for 2024–25 flights, while Shell began supplying SAF at Dubai Airport in 2023.
In her interview, Thomsen said: 'The Middle East has huge opportunities for co-processing. What we are seeing across the world is insufficient production of SAF.'
Co-processing is the use of renewable feedstock in conventional fossil fuel units. This method allows existing traditional fuel refineries to seamlessly integrate renewable feedstocks into their production processes without the need for extensive infrastructural changes.
She added: 'If this co-processing happens, then boom — we have a SAF plant. Clearly, the Middle East is uniquely positioned for this.'
Thomsen further said that governments in the Middle East region should create investment policies in such a way that oil producers will be more attracted to co-processing.
The use of SAF is widely considered a crucial development for the global aviation industry, as most countries have stipulated targets to achieve net zero as part of their energy transition efforts.
According to Thomsen, the world, on its current trajectory, is expected to produce 400 million tonnes of SAF by 2050, up from an estimated 2 million tonnes in 2025 and 1 million tonnes in 2024.
Amid this projected growth, Thomsen revealed that the world would require at least 500 million tonnes of SAF by 2050 to meet energy transition and sustainability goals.
'On the current trajectory, we will be a 100 million tonnes short in 2050. That is a dramatic shortfall. If we do not address it today, this shortfall may be even greater by the time we reach 2050,' said Thomsen.
She said this presents a challenge and dilemma because as long as jet engines power our flights, liquid fuels remain essential.
'Again, I repeat, the Middle East is uniquely positioned to help the world take a big step forward if we could immediately co-process. There are also lower-carbon fuels which occur naturally in the Middle East, which the world should explore,' she added.
Thomsen revealed that the aviation industry's net profit margin is lower compared to other sectors, and expenses could rise as SAF gains.
However, she made it clear that effective ways should be adopted to increase the production of the fuel, so that the energy transition targets could be achieved by 2050.
On the opening day of the AGM, Willie Walsh, director general of IATA, also shared identical views, and said that sufficient government measures, including the implementation of effective policies, are needed to achieve decarbonization targets.
He added that ensuring the success of the Carbon Offsetting and Reduction Scheme for International Aviation is crucial to offsetting carbon emissions in the aviation sector.
Under CORSIA, an initiative launched by the International Civil Aviation Organization, airplane operators must purchase and cancel 'emissions units' to offset the increase in CO2 emissions.