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Boeing says Brazil could become a leading nation in sustainable aviation fuel.

Boeing says Brazil could become a leading nation in sustainable aviation fuel.

TraderKnowsTraderKnows
2024-05-06
Summary:Landon Loomis, head of Boeing in Latin America and the Caribbean, stated that Brazil has the tech ability, skilled workforce, and materials to help meet global aviation decarbonization goals.

Executives at Boeing have stated that Brazil has the potential to become one of the world's leading players in sustainable aviation fuel (SAF), as the industry strives to achieve the ambitious goal of net-zero carbon emissions by 2050. Sustainable aviation fuel refers to aviation fuel made from renewable resources such as plant oils or waste.

Boeing is already one of the world's largest buyers of sustainable aviation fuel, and the development and demand scale of SAF will largely be determined by the International Air Transport Association (IATA), which represents airlines.

Brazil, one of the world's largest agricultural producers, is already leading globally in biofuels like ethanol extracted from sugarcane or corn, and biodiesel extracted from soy oil. Landon Loomis, Boeing's head for Latin America and the Caribbean, said that Brazil possesses the technical capability, qualified workforce, and raw materials to collaborate in solving the global challenge of aviation decarbonization.

While radical technological innovations are considered key to reducing aviation emissions, the industry's main focus is on fuels that can be used in existing jet engines, such as those based on plant oils or waste, including SAF and synthetic substitutes.

Ensuring an adequate supply of SAF amidst high costs and slow production growth is the aviation industry's biggest challenge in driving net-zero emissions. IATA estimates that by 2050, SAF will account for 65% of the energy needed for the industry to achieve net-zero carbon emissions. However, in May, Qatar Airways CEO Akbar Al Baker hinted that the industry might not meet the 2050 net-zero carbon emissions goal due to insufficient SAF supply.

For Brazil's Gol Airlines, securing a supply of SAF is a priority. Eduardo Calderon, director of Gol's operations control center, stated that although the current cost of SAF is three times that of fossil fuels, the global aviation industry cannot achieve the 2050 carbon emission targets without accelerating the SAF process.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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