Global Sustainable Aviation Fuel Report

Chile is taking significant strides to establish itself as an important player in the global SAF market. Recognizing the crucial role of SAF in decarbonizing the aviation industry, the country is proactively investing in the development of a robust domestic SAF production capacity. By leveraging its abundant renewable energy resources and collaborating with local industries, Chile aims to create a supportive environment for the growth of the SAF market.

With the urgency of sustainable aviation practices in mind, the Chilean government has set ambitious goals, including the establishment of its first large- scale SAF production facility by 2030 and a target to produce 50% of its jet fuel from sustainable sources by 2050. As air travel demand continues to rise, Chile recognizes the urgent need to mitigate the environmental impact of the sector. Through strategic investments, supportive policies, and industry partnerships, Chile is positioning itself to become a leader in sustainable aviation, driving economic growth while contributing to the global fight against climate change.

As Chile seeks to strengthen its standing in the global biofuel market, it faces competition from other South American nations that have more mature and widespread biofuel practices. Countries like Brazil and Argentina have long been at the forefront of biofuel adoption, establishing robust policies and infrastructures to support their biofuel sectors. In contrast, Chile’s journey in implementing biofuel policies has been more gradual. However, the country is actively working to bridge this gap by fostering a more supportive environment for renewable energy, including biofuels (IEA Bioenergy, 2023).

In this context, the Chilean government is providing substantial financial support to SAF projects through various funding programs aimed at research, development, and scaling up production capacities. In May 2023, Chile formalized its commitment to advancing the decarbonization of air transport by joining the ICAO SAFs assistance, capacity building, and training program known as ACT-SAF (JAC (Junta de Aeronáutica Civil) Chile, 2023).

Chile’s SAF Roadmap 2030, announced in April 2024, outlines ambitious goals, including establishing a large-scale SAF production facility by 2030 and aiming to replace 50.0% of jet fuel with SAF derived from oils, fats, biological, and municipal waste by 2050 (Avfoil News, 2024). Additionally, the Vuelo Limpio (Clean Flight) program, launched in 2020, invites domestic airlines to adopt tools that reduce GHG emissions. This public-private collaboration aims to improve efficiency in the civil aviation industry and promote good energy management practices (Gobierno de Chile, 2021).

Looking ahead, Chile plans to leverage its local forestry, agriculture, and hydrogen industries to support SAF development and make it cost-competitive with traditional jet fuel. The country is also conducting a comprehensive study on the long-term viability and economic feasibility of large-scale SAF production (Avfoil News, 2024).

As the demand for SAF grows worldwide, driven by countries and airlines seeking to reduce their carbon footprint, Chile’s early investments and strategic partnerships in SAF production are expected to give the country a competitive edge as a global supplier.

Several notable companies are contributing to Chile’s growing SAF project pipeline through various strategic initiatives:

Airlines such as LATAM and Sky Airline are equally committed, actively participating in SAF projects by forming alliances with fuel producers to secure sustainable fuel supplies and reduce their carbon footprints. With air traffic in Chile projected to double by 2040, SAF will remain a crucial element in meeting the country’s decarbonization goals.