Weighing the environmental costs of the biofuel feedstock supply chain

The push for sustainable aviation fuel is a necessary effort in the battle against climate change. However, the transition towards truly green aviation is a journey filled with many complexities and challenges and even potential pitfalls along the way. One such issue is the uncertainty of the feedstock supply chain.

In Indonesia, the world's largest producer of palm oil, significant strides have been made in incorporating palm oil into fuel production. PT Pertamina, Indonesia’s state energy company, processes 3,000 barrels of refined palm kernel oil daily for biodiesel and sustainable aviation fuel (SAF)​​.

Yet, this approach carries significant environmental costs. The cultivation of palm oil is linked to deforestation, biodiversity loss, and substantial carbon emissions. The expansion of palm oil plantations leads to the destruction of rainforests, loss of biodiversity, and significant CO₂ emissions from deforestation and peatland degradation.

These factors severely undermine the goals of ‘S’ in SAF.

A stark example of the impact of palm oil production can be seen in the Indonesia’s Leuser Ecosystem. This region, one of the most biodiverse on the planet, has lost vast areas of its forest cover to make way for palm oil plantations. This deforestation not only releases significant amounts of carbon dioxide but also destroys the habitats of numerous endangered species, such as orangutans, elephants and Sumatran tigers.

At present, the majority of the world’s SAF is made from used cooking oil (UCO), which exists in limited supply. Europe's high demand for recycled oil has led to the importation of about 80% of its supply, predominantly from China.

However, heavy reliance on imports can lead to misrepresentation, where fresh oils like palm oil are inaccurately labelled as UCO to capitalise on the premium value associated with green fuels. This raises significant concerns about the authenticity of some green fuel claims.

Given the difficulties in verifying the origins of imported UCO, countries have launched investigations regarding the risks of biofuel mislabelling. These investigations highlight the pressing need for stricter regulations and greater transparency across the supply chain to ensure authenticity and uphold the environmental integrity of SAF.

For instance, Germany's Federal Environment Agency and Ireland's National Oil Reserves Agency have both identified instances where virgin palm oil was incorrectly labelled as UCO, underscoring the need for better verification processes.

In contrast, using municipal waste – your everyday black bin waste – for SAF production presents more clear-cut environmental benefits compared to using oils. Turning waste into fuel not only cuts down on carbon emissions from waste management practices by diverting waste from landfills or incineration but also transforms an environmental liability into a valuable resource. The UK estimated its landfill emissions at 14 million tonnes of CO₂ equivalent in 2019. Globally, waste management contributes significantly to methane and CO₂ emissions​. Repurposing household waste into SAF can mitigate these emissions without any impacts on deforestation or biodiversity loss.

The promise of SAF hinges not only on the use of abundant feedstocks with high carbon reductions potential, but these feedstocks need transparent and authentic supply chains. Only by ensuring that waste materials are correctly sourced and used can we hope to make significant strides in reducing aviation's carbon footprint and truly embrace a sustainable future.

To learn more about Avioxx’s novel process to make sustainable fuels from municipal solid waste, please get in touch at  info@avioxx.com.