Published by Jessica Weisman-Pitts
Posted on November 20, 2024
2 min readLast updated: January 28, 2026
(Reuters) – Major oil and gas companies have ramped up
(Reuters) – Major oil and gas companies have ramped up investments in the biofuels sector, betting on sustainable aviation fuel (SAF), with 43 projects expected to be up and running by 2030, consultancy Rystad said in a report.
The energy research firm indicates that investments by industry giants such as ExxonMobil, Chevron, BP, Shell, TotalEnergies, and Eni could add 286,000 barrels per day (bpd) of production capacity.
SAF, produced from waste and residue like used cooking oil or organic crops, emits the same amount of carbon dioxide as kerosene when burned. However, it’s considered less polluting due to its production from leftovers or plants rather than newly drilled oil, which releases additional greenhouse gases.
The aviation industry accounts for nearly 2% of global energy-related carbon dioxide emissions.
“As the energy transition progresses, these biofuels offer a practical, near-term solution to reduce emissions without requiring significant changes to current infrastructure,” said Lars Klesse, analyst of bioenergy research at Rystad.
BP leads the pack with the largest announced production capacity, reaching a combined 130,000 bpd.
Strategic acquisitions, such as BP’s purchase of Bunge Bioenergia and Chevron’s takeover of Renewable Energy Group, have strengthened oil majors’ positions in this space.
Despite its higher cost compared to petroleum-based jet fuel, SAF uptake is gaining momentum. Government mandates are driving investments, with the European Union requiring a minimum of 2% of SAF use in aviation by 2025, and the Biden White House aiming to meet all U.S. aviation fuel demand with SAF by 2050.
(Reporting by Seher Dareen in Bengaluru; Editing by Tasim Zahid)
Sustainable aviation fuel (SAF) is a type of biofuel made from waste materials and organic crops. It emits the same amount of carbon dioxide as traditional kerosene but is considered less polluting due to its renewable sources.
Biofuels are renewable energy sources made from organic materials, such as plants or waste. They can be used as alternatives to fossil fuels in various applications, including transportation.
Carbon dioxide emissions refer to the release of CO2 into the atmosphere, primarily from burning fossil fuels. They contribute to climate change and global warming.
Greenhouse gases are gases that trap heat in the atmosphere, contributing to the greenhouse effect. Common examples include carbon dioxide, methane, and nitrous oxide.
Investment capacity refers to the potential amount of resources or capital that can be allocated for investment purposes, often measured in terms of production or financial capacity.
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