TotalEnergies CEO Patrick Pouyanne has expressed his belief that the European Union will likely scale back its sustainable aviation fuel (SAF) mandate in the future. He compared it to the EU’s recent decision to relax its proposed ban on new combustion-engine cars by 2035. Despite the current mandate for 2% SAF by 2026, which rises to 6% by 2030, and 20% by 2035, Pouyanne believes that regulatory pressure on SAF adoption will eventually ease.
Challenges in SAF Adoption: High Costs and Limited Demand
Pouyanne emphasized that TotalEnergies has delayed expanding its SAF production capacity due to limited demand from airlines. He noted that SAF is priced three to four times higher than traditional jet fuel, making it less attractive for airlines. While SAF meets EU regulatory requirements, airlines have expressed concerns over the high costs and limited availability of SAF, slowing its adoption despite increasing environmental pressure.
Regulatory Uncertainty and Its Impact on Investment
The uncertainty surrounding SAF regulations is another significant concern. Pouyanne warned that if the EU alters its mandate, investments in biorefineries could prove to be wasteful. This regulatory uncertainty could hinder the growth of low-carbon fuels in the aviation sector, despite the clear need for cleaner alternatives to traditional jet fuel.
Pouyanne’s outlook suggests that while SAF has potential, its widespread use and investment will depend on more stable regulatory frameworks and cost-effective production.
