A New Reality for Sustainable Aviation Fuel
The aviation sector has long been seen as one of the most difficult industries to decarbonise. While progress has been made through energy-efficient aircraft, carbon offset programs, and operational improvements, the real game changer lies in the widespread use of sustainable aviation fuel. Yet in California, a state that has been at the forefront of environmental innovation, a critical development has underscored the fragility of the clean fuel transition.
The closure of World Energy’s Paramount refinery in Los Angeles, once hailed as a beacon of green aviation, has sent ripples through the airline industry. United Airlines, JetBlue, and several others had placed strong hopes on this refinery to deliver on their sustainability commitments. Its closure highlights not only the immediate setbacks in production but also the broader challenges that surround the global adoption of sustainable aviation fuel.
The Significance of the Paramount Refinery
World Energy’s Paramount site had an important symbolic and practical role in shaping the perception of aviation’s sustainable transition. Operating with feedstocks such as used cooking oil and agricultural waste, the refinery demonstrated how waste could be transformed into fuel capable of powering commercial flights.
For airlines such as United, which had set ambitious goals of replacing ten percent of fuel consumption with SAF by 2030, the refinery represented more than a supply source. It stood as proof that the future of aviation could indeed be greener. The sudden halt of operations due to refurbishment overruns and financial strain, however, has temporarily disrupted this optimism.
Airline Commitments and Industry Reality
Over the last decade, airlines have consistently announced bold sustainability targets. However, a closer look reveals a significant gap between ambition and execution. Out of 165 SAF projects announced globally in the past twelve years, only 36 have advanced beyond initial planning. This statistic points to a wider issue: enthusiasm for sustainability often collides with the harsh realities of cost, infrastructure, and scaling challenges.
This gap is not necessarily a reflection of reluctance. Instead, it illustrates the complexity of transforming the fuel landscape of a global industry. Airlines must balance shareholder expectations, regulatory frameworks, and consumer demand, all while navigating the volatility of fuel prices and uncertain supply chains.
Aviation’s Net Zero Pathway
The International Air Transport Association has set 2050 as the deadline for achieving net zero emissions. To reach this goal, sustainable aviation fuel must contribute a significant share of total fuel consumption. Projections for 2025 suggest SAF will represent only 0.7 percent of total jet fuel use—far below what is required.
The cost of SAF is a critical factor. With prices hovering three to five times higher than conventional jet fuel, airlines face a challenging financial equation. Oil companies, meanwhile, hesitate to scale production without guaranteed demand, leaving producers and airlines in a cycle of hesitation.
This is where long-term partnerships, transparent communication, and shared risk models between stakeholders become vital. Only through cooperation can both supply and demand grow in tandem.
Delays in New Projects
Beyond California, delays in other SAF projects underline the challenges of global production. A facility in Panama, originally scheduled to be operational in 2025, has postponed its start date to 2027. Producers cite limited airline interest as a core reason.
The potential redirection of these projects to alternative industries such as renewable diesel for road transport highlights the urgency for aviation to act decisively. Competing sectors are equally eager to adopt low-carbon fuels, and the risk is that aviation could lose out on access to limited supplies if commitments are not strengthened.
The Essential Role of Governments
Governments have the power to accelerate this transition. In Europe, policymakers have introduced SAF mandates that begin at two percent blending in 2025, increasing steadily to seventy percent by 2050. These requirements come with steep costs, but they create the demand certainty that producers need to justify investment.
In the United States, support measures exist but remain fragmented. Without consistent federal policies and clear incentives, the market struggles to gain momentum. The closure of the Paramount refinery is a reminder that government and industry alignment is essential. Creating the right balance of mandates, tax credits, and research support can transform SAF from a niche experiment into an industry standard.
A Moment of Reflection and Opportunity
Although the recent refinery closure is a setback, it also offers an opportunity to reassess strategies. The aviation industry has made progress in raising awareness and laying out pathways, but more needs to be done to match vision with reality.
This moment can serve as a turning point. Airlines have an opportunity to not only recommit to SAF but also to collaborate more closely with fuel producers and policymakers. Greater investment in research, diversification of feedstocks, and regional production hubs could reduce risks and enhance resilience.
Lessons for the Future of Clean Fuel
Several lessons emerge from California’s experience. First, reliance on single projects or facilities carries risk; a broader portfolio of production centers is necessary. Second, collaboration across the value chain is no longer optional but essential. Finally, long-term planning must be integrated with short-term flexibility to adapt to financial and operational realities.
If embraced, these lessons can help safeguard against similar setbacks in the future and ensure that momentum is not lost in the race to decarbonise aviation.
Conclusion
The journey to sustainable aviation fuel is proving to be longer and more complex than many expected. California’s refinery setback demonstrates the hurdles, but it also illuminates the path forward. While immediate challenges may delay progress, they do not diminish the urgency or the potential of clean fuels to transform aviation.
What is required now is a collective commitment. Airlines, producers, governments, and consumers must all play their part in shaping the future of sustainable air travel. The aviation industry has shown resilience in the past, and with the right strategies, it can do so again—this time in pursuit of a future where flight and sustainability move hand in hand.
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