Sustainable aviation fuel - Part 2: Accelerating Australia’s farm emission reduction transition

Structural changes in demand for agricultural products that could benefit agribusiness are on the horizon due to the decarbonization needs of the aviation sector.

This report is the second part of Rabobank’s analysis on sustainable aviation fuel (SAF) and the potential advantages and opportunities it may offer Australian agriculture.

SAF could be beneficial to the transition to a low-carbon Australian agriculture sector. Correctly set rules that focus on (carbon) emissions reduction can drive market economics, resulting in a price premium for the low-carbon feedstock used in sustainable fuel.

The transition to low-carbon farming requires real market economics to encourage a willingness along the supply chain to pay for low-carbon farm products. If the supply chain could prove, that the feedstock they use to produce SAFs are below a standard value, and legislation would accept and include this, a price premium for low-carbon feedstocks seems plausible.

Bulk supply chains can handle such low-carbon feedstocks without too much extra cost, at least in case of a “mass balance” approach rather than a “segregation” or “identity preservation” approach.

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Sustainable aviation fuel - Part 2 Accelerating Australia’s farm emission reduction transition

Research

Sustainable aviation fuel - Part 2: Accelerating Australia’s farm emission reduction transition

Stefan Vogel

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