Sustainable aviation fuel is gaining momentum as a critical solution for reducing emissions from air travel. In 2025, SABA is introducing two targeted procurement strategies to help corporate buyers secure short-term and long-term sustainable aviation fuel supplies.
By focusing on flexibility, transparency, and scalability, these procurement streams will help companies address their climate commitments while supporting the continued growth of the sustainable aviation fuel market.
Building on the Success of 2024 Procurement
In 2024, SABA’s multi-year procurement round secured nearly 50 million gallons of sustainable aviation fuel, bringing together 20 global companies and driving $200 million in investments into the market.
Despite this progress, the demand for sustainable aviation fuel (SAF) still exceeds the supply. To bridge this gap, SABA’s 2025 procurement strategy introduces two separate streams designed to provide both immediate purchasing opportunities and long-term investment solutions.
Procurement Stream 1: SAFc Connect Database
A Flexible and Transparent Marketplace
Launching in March 2025, SAFc Connect is a spot procurement database that simplifies the buying and selling process for sustainable aviation fuel certificates. This new model will offer corporate buyers greater access to verified SAFc providers while ensuring that fuel suppliers have a direct channel to committed buyers.
How SAFc Connect Works
- SAFc providers will undergo a vetting process before listing their fuel offerings in the database.
- Corporate buyers can browse available SAFc options, including pricing, feedstock type, and contract terms.
- Transactions occur independently, allowing buyers to purchase fuel according to their schedules.
Key Benefits of SAFc Connect
This model introduces several major advantages for buyers and suppliers:
1. Greater Market Transparency
- Corporate buyers will have real-time visibility into SAFc pricing and availability.
- Fuel providers can showcase approved, high-integrity SAFc offerings to a committed audience.
2. Increased Flexibility
- Buyers can make independent purchasing decisions based on their sustainability goals.
- Fuel suppliers can continuously update their offers as new fuel becomes available.
3. Faster Procurement Process
- Companies no longer have to wait for lengthy procurement rounds to secure SAFc.
- Providers can sell SAFc faster, improving revenue flow and incentivizing new fuel production.
Next Steps for SAFc Connect
- Onboarding for SAFc providers and corporate buyers begins in March 2025.
- The database will go live in May 2025, with regular updates and ongoing support to ensure smooth operations.
Procurement Stream 2: Investing in Next-Generation SAF
Supporting Long-Term SAF Market Growth
The second procurement stream is designed to support investment in next-generation sustainable aviation fuels. These include:
- eFuels – Synthetic aviation fuels produced using renewable electricity and captured CO₂.
- Advanced biofuels – Fuels derived from agriculture and forestry residues, municipal waste, and other sustainable sources.
Why This Investment is Essential
Current sustainable aviation fuel faces feedstock limitations that could hinder its scalability beyond 2030.
Next-generation fuel production offers greater long-term potential but requires significant investment now to ensure commercial availability by 2050 net-zero deadlines.
Key Goals of the Next-Generation SAF RFP
SABA’s May 2025 RFP for next-generation SAF will aim to:
- Enable new SAF production facilities to reach Final Investment Decision (FID) status.
- Support competitive pricing models to make SAF more accessible for corporate buyers.
- Foster collaboration among airlines, fuel suppliers, investors, and corporate buyers to scale next-generation fuel production.
Challenges and Solutions
Through ongoing discussions with airlines, fuel providers, and corporate customers, SABA has identified three major investment challenges and potential solutions:
1. Urgent Investment Needs
- Many next-gen SAF plants must reach FID approval by 2026 to begin operations before 2030.
- Solution: Long-term contracts will provide the financial security needed to secure investment.
2. High Production Costs
- Next-generation fuels require higher upfront investments than traditional biofuels.
- Solution: Partnership models and government incentives will help offset costs for buyers and suppliers.
3. Contract Duration Mismatch
- Fuel providers seek 8-10 year contracts, while corporate buyers often prefer 5-year agreements.
- Solution: Innovative contract structures will be developed to balance both needs.
Next Steps for Next-Generation SAF Procurement
- The RFP for next-gen SAF will be released in May 2025.
- All SABA members will be eligible to participate in securing long-term SAF agreements.
Conclusion: A Dual Approach to SAF Procurement
SABA’s 2025 procurement strategy introduces a two-pronged approach to address both short-term and long-term challenges in sustainable aviation fuel:
- SAFc Connect provides immediate access to SAFc with greater transparency and flexibility.
- Next-generation SAF procurement helps secure future fuel supply for a net-zero aviation industry.
By participating in these initiatives, corporate buyers, fuel suppliers, and investors can drive meaningful progress toward a lower-carbon aviation sector.