Shell CEO calls green aviation fuel costly and slow to adopt

In recent discussions regarding sustainable aviation fuel in the UK, Wael Sawan, the chief executive of Shell, expressed skepticism about the potential of green aviation fuel to significantly reduce carbon emissions. He highlighted that despite claims from officials such as Rachel Reeves about its revolutionary impact, the current use of sustainable aviation fuel remains critically low at less than 0.1 percent of aviation fuel consumption globally. Sawan further noted that the high cost of production is a major barrier to widespread adoption by airlines, which prioritizes their financial sustainability. This situation is compounded by recent trends indicating that governments may weaken biofuels mandates, which could discourage investments in this essential area of clean technology. Acknowledging Shell's commitment, Sawan revealed potential investments of $10 to $15 billion aimed at advancing sustainable aviation fuel production by 2025. He also commented on the anticipated growth of sustainable aviation fuel over the next decade but warned that the industry's progression would be slow, primarily due to financial constraints and the necessity for regulatory mandates to stimulate change. With the UK government setting specific targets for sustainable aviation fuel utilization by 2030 and beyond, industry stakeholders are now tasked with achieving these benchmarks while navigating economic challenges and varying governmental policies worldwide that could undermine the competitive viability of green fuels. Overall, the future trajectory of sustainable aviation fuels remains uncertain as both technological and regulatory frameworks evolve.