Regional integration will be key development of SAF in Latin America

Latam Airlines Airbus Mit Study Sustainability Sustainable Fuel Aviation Saf Chile Peru Ecuador Brazil Colombia Mexico

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After a study funded by LATAM Airlines Group and Airbus together with the MIT Center for Science and Strategy for Sustainability, it was revealed that integration will be key to the development of PURE on Latin America.

The study focuses particularly on production paths for sustainable aviation fuels (PURE) in the region, especially in Brazil, Chile, Colombia, Ecuador, Mexico and Peru. In this, are considered associated costs, impact on prices, greenhouse gas emissions and demand from the air transport sector.

Development of SAF in Latin America

The findings highlight that the use of PURE will be the main tool for the decarbonization of the area industry, but at the same time this will have a higher cost than the current fossil fuel, which already represents approximately a 40% of the operational costs of the region's airlines, Therefore, without adequate public policies, the PURE could increase travel costs, affecting flight demand and connectivity in the region.

In this way, The study concludes that government collaboration and public policies will be required to incorporate this type of fuel and reduce the economic impact., balancing the commercial viability of the SAF with the impact of decarbonization measures on passenger traffic and connectivity.

in addition, study suggests that a regional look at decarbonization approaches between countries will be beneficial, helping to generate economies of scale, while reducing the impact on demand. For instance, the 6 Countries have different potentials for SAF production in terms of volume and cost, Therefore, it is indicated that it would be advantageous to enable access to the most economical fuel for countries with less potential., and in turn, expand the market for producing countries.

«Aviation in Latin America plays a crucial role in the connectivity and economic development of the region. Nevertheless, to move towards net zero emissions, we need to adopt solutions such as sustainable aviation fuels (PURE), that do not yet have a developed industry. If we do not trace a suitable path, we run the risk of raising costs and compromising the development of our regional connectivity. Regional integration, in this context, It is presented as a key alternative to reduce cost overruns and ensure the transition towards a more sustainable aviation,” says Juan José Tohá, Director of Corporate Affairs and Sustainability of LATAM Airlines Group.

«This study confirms the potential of Latin America for the production of SAF and the logic of aligning decarbonization approaches between countries to guarantee competitiveness and economies of scale. At Airbus we are convinced that joint collaboration is essential to get closer to emissions reduction targets and to promote an SAF industry that benefits everyone.", says Guillaume Gressin, Vice President of International, Airbus Commercial Strategy and Operations Latin America and the Caribbean.

Check out the full LATAM-funded study on SAF here 👇 https://cs3.mit.edu/publication/118414

 

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