How SEKO’s Embracing Sustainable Aviation Fuel

By: Kai Lincoln, SEKO's VP, Global Sustainability

Today, airfreight emits approximately 500 grams of CO2 per ton-mile, significantly more than ocean, road, or rail due to the energy-intensive nature of aviation and the limited cargo capacity of aircraft. In contrast, ocean freight is far more efficient, emitting only 10-40 grams of CO2 per ton-mile.

As the aviation industry looks to achieve net-zero carbon emissions by 2050, Sustainable Aviation Fuel (SAF) provides a practical solution that can be implemented with existing infrastructure and technology, enabling immediate reductions in emissions.

Understanding Sustainable Aviation Fuel (SAF)

SAF is a renewable alternative to traditional Kerosene-based jet fuel, designed specifically for aircraft use. It’s produced from sustainable sources such as biomass, waste oils, and agricultural residues.

Key Characteristics and Benefits of SAF

Here are some key characteristics and benefits that underscore its potential in combating climate change and promoting sustainable air transport:

• Reduced Greenhouse Gas Emissions: SAF has the potential to cut greenhouse gas emissions by up to 80% compared to traditional fossil-based aviation fuels.
• Compatibility & Integration: A distinct advantage of SAF lies in its seamless integration with existing aircraft engines. It can be blended with traditional jet fuel, making it a drop-in solution for reducing aviation emissions and the logistics challenges posed by alternative fuel solutions such as hydrogen, LNG, or ammonia.
• Sustainable Feedstocks: SAF can be produced from feedstocks that don’t compete with food production, often derived from waste materials. This approach minimizes the environmental impact of fuel production.
• Certification and Standards: Meeting rigorous safety and performance benchmarks set by organizations such as ASTM International ensures SAF’s operational reliability and efficiency performs similarly to traditional jet fuel.
• Economic and Environmental Advantages: By reducing dependency on fossil fuels and promoting the use of renewable resources, SAF can help drive economic growth in the renewable energy sector while mitigating the environmental impact of aviation.

Barriers to SAF Adoption

Despite its benefits, SAF faces several barriers, hindering widespread adoption:

• High Production Costs & Limited Feedstock Availability: Current SAF production costs associated with feedstock collection, processing, and refining exceed those of conventional jet fuel. The sustainable feedstocks required for SAF production, such as waste oils and non-food biomass, are not available in large quantities. Scaling up SAF production requires significant investment in feedstock supply chains and new agricultural or waste-processing infrastructure.
• Technological Challenges: Technologies for SAF production, such as Fischer-Tropsch synthesis, hydroprocessed esters and fatty acids (HEFA), are still under development and require further refinement and scaling to achieve commercial viability and energy efficiency.
• Investment and Financing: Developing SAF production facilities and supply chains requires substantial capital investment, yet securing financing can be challenging due to market uncertainties and competition with other renewable fuels for the same feedstocks. Policy frameworks supporting SAF, such as subsidies, tax incentives, carbon pricing, and mandates for SAF blending, are crucial to mitigate these barriers and accelerate adoption.

Addressing these barriers requires a coordinated effort from governments, industry stakeholders, and researchers to support SAF production and adoption.

SEKO'S Commitment to SAF in the Decarbonization Movement

At SEKO, we recognize the role we play in moving towards a more responsible logistics sector. As a collective industry, it’s on us to foster a deeper understanding of SAF’s benefits - its ability to significantly lower greenhouse gas emissions compared to conventional jet fuel, compatibility with existing aircraft and infrastructure, and its role in achieving industry-wide sustainability goals.

As the most pollutant mode of transportation with limited decarbonization alternatives, airfreight faces a significant challenge in reducing its environmental impact. We believe SAF presents the only truly scalable, short-term alternative fuel for airfreight. We champion SAF not only as a concept but as a critical initiative that all freight forwarders and shippers should actively support.

Our SAF strategy encompasses both direct investment and actively encouraging and facilitating our clients to purchase their own SAF allocations through our airline partners. When clients purchase SAF, they receive the full benefit of carbon reductions, along with all associated certification to ensure the environmental impact and credentials are attributed directly to the shipper. This dual approach not only bolsters the growth and adoption of SAF, but also empowers our clients to take tangible steps towards their sustainability goals.

Engaging in Industry Events

Over the past two years, SEKO has actively contributed to SAF adoption through direct purchases with airline carriers like Air France KLM. These commitments are crucial to the ongoing investment by SAF producers and airlines to enable the scalability and affordability of SAF by shippers and freight forwarders alike.
In addition to SEKO’s direct purchases of SAF, we’ve attended several conferences hosted by organizations like Smart Freight Centre, IATA and United Airlines to discuss SAF policies, availability, pricing and practices of individual airlines.

Partnering with United Airlines

Since 2022, SEKO has proudly partnered with United Airlines and has grown to be their largest forwarding client for exports. Through this collaboration, our clients are able to take advantage of the benefits of SAF with an airline that’s invested in the future production of over 5 billion gallons of SAF – the most of any airline in the world.

Looking Towards the Future

SEKO’s engagement with SAF aligns closely with our ambitious 2040 objective of achieving carbon neutral air and ocean freight. While this timeline may seem distant, the journey to achieving carbon neutrality demands immediate action. By supporting SAF, we are driving necessary changes in infrastructure, scalability, and industry perceptions.

SEKO’s committed to leading this charge, advocating for SAF’s integration into global logistics strategies, and paving the way for a cleaner, greener future in air transport.