((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
Major oil and gas companies have increased their investments in the biofuel sector, betting on sustainable aviation fuel (SAF), with 43 projects expected to be operational by 2030, consultancy Rystad said in a report.
The energy research firm says investments by industry giants such as ExxonMobil XOM.N , Chevron CVX.N , BP BP.L , Shell
SHEL.L, TotalEnergies TTEF.PA and Eni ENI.MI could add 286,000 barrels per day (bpd) to production capacity.
SAF, produced from waste and residue such as used cooking oil or organic crops, emits the same amount of carbon dioxide as kerosene when burned. However, it is considered less polluting because it is produced from scraps or plants rather than from newly drilled oil, which releases additional greenhouse gases.
The aviation industry accounts for nearly 2% of global energy-related carbon dioxide emissions.
“As the energy transition advances, these biofuels offer a practical, short-term solution to reduce emissions without requiring significant changes to current infrastructure,” said Lars Klesse, bioenergy research analyst at Rystad.
BP leads the pack with the largest announced production capacity, reaching 130,000 bpd.
Strategic acquisitions, such as BP's purchase of Bunge Bioenergia and Chevron's purchase of Renewable Energy Group, have strengthened the oil majors' positions in this area.
Despite its higher cost than petroleum-based kerosene, adoption of SAF is gaining momentum. Government mandates are spurring investment, with the European Union requiring a minimum of 2% SAF in aviation by 2025, and the Biden White House aiming to meet 100% of U.S. aviation fuel demand with SAF by 2050.
