Unraveling Willingness to Pay for Sustainable Aviation Fuel

A survey of 23 companies by RMI and the Mission Possible Partnership indicates that airlines and corporate customers are willing to pay a 'green premium' for Sustainable Aviation Fuel (SAF) and SAF certificates (SAFc). The findings suggest that waste-based feedstocks and shorter contract durations are preferred, and that current willingness to pay (WTP) could make certain SAF production pathways, particularly HEFA, financially bankable.

• Airlines and logistics service providers expressed an average willingness to pay (WTP) of $6 per gallon for SAF, which is nearly three times the fossil jet fuel price of $2.29 per gallon at the time of writing.
• Corporate buyers showed an average WTP of $300 per ton of CO2 emissions abated for SAF certificates (SAFc), with values ranging from $298 to $325 per ton across different sectors. Consulting firms and corporate travel sectors showed the highest WTP, while industrial companies showed the lowest.
• Buyers prefer SAF produced from waste-based feedstocks, such as tallow, over crop-based options due to sustainability concerns and potential competition with food sectors. Additionally, there is a preference for shorter offtake contracts, as longer durations decrease the probability of purchase and lower the WTP.
• In the US market, the WTP for SAFc suggests that SAF projects could be bankable, particularly those using the Hydroprocessed Esters and Fatty Acids (HEFA) pathway. Assuming a 75 percent carbon intensity reduction, the SAFc WTP translates to a green premium of $2.34 to $3.93 per gallon, resulting in a SAF price range of $9.4 to $10.96 per gallon.

APA

RMI (2024). Unraveling Willingness to Pay for Sustainable Aviation Fuel. https://rmi.org/resources/unraveling-willingness-to-pay-for-sustainable-aviation-fuel/

Chicago

RMI. Unraveling Willingness to Pay for Sustainable Aviation Fuel. 2024. https://rmi.org/resources/unraveling-willingness-to-pay-for-sustainable-aviation-fuel/.

Wikipedia

{{cite report |author=RMI |title=Unraveling Willingness to Pay for Sustainable Aviation Fuel |date=17 September 2024 |url=https://rmi.org/resources/unraveling-willingness-to-pay-for-sustainable-aviation-fuel/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024unraveling, author = {{RMI}}, title = {{Unraveling Willingness to Pay for Sustainable Aviation Fuel}}, institution = {RMI}, year = {2024}, month = sep, url = {https://rmi.org/resources/unraveling-willingness-to-pay-for-sustainable-aviation-fuel/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }