Global Sustainable Aviation Fuel Report

Although the Italian SAF market is still in its early development stages, it is progressing rapidly due to the aviation sector’s need for decarbonization, driven by the country’s high air traffic volume. This underscores the importance of adopting SAF to mitigate aviation’s environmental impact. Italy is targeting an ambitious SAF production capacity of 150,000 tons by 2024, demonstrating its commitment to fostering a robust SAF industry (A&D Market Reports, 2023).

Italy’s national legislation on SAF closely aligns with EU laws aimed at reducing emissions in the transportation sector. The Italian Civil Aviation Authority (ENAC) established the “National Observatory on SAF” to create a technical board involving key ministries and stakeholders interested in SAF development. In 2022, ENAC collaborated with these stakeholders to define a “Roadmap on SAF in Italy,” focusing on potential incentive policies and aligning with the “ RefuelEU Aviation” context (ENAC, 2023).

In April 2022, “The Pact for the Decarbonisation of Air Transport” was established to help the aviation industry meet sustainability targets, aiming for Net Zero Emissions by 2050 (Decarbonizzazione Trasporto Aereo, n.d.). This initiative, launched by Decarbonizzazione Del Trasporto Aereo, involves key players such as airlines, airports, fuel producers, and government organizations. The pact emphasises stakeholder cooperation in transitioning to sustainable air transport, promoting public-private partnerships for low-carbon technologies, and implementing policies that incentivise sector decarbonisation (Logistica, 2023).

Further, the Italian government, in conjunction with EU funding programs like Horizon Europe and the European Green Deal, is providing substantial financial support to SAF projects. These funds are aimed at research, development, and scaling up production capacities, ensuring that Italy remains competitive in the global SAF market.

The Italian SAF market presents a promising opportunity for growth and development, driven by collaborative efforts of biofuel producers, aviation companies, research institutions, and government agencies. The market benefits from international collaborations, joint R&D initiatives, and technology transfers, enhancing expertise and boosting the country’s competitiveness in the global SAF market (A&D Market Reports, 2023).

Leading Italian energy companies, such as GreenOil and EcoFuel, are investing heavily in SAF production by converting refineries and leveraging advanced technologies to improve efficiency and sustainability. These companies are also forming partnerships with technology providers and research institutions to enhance their production capacity. For example, Italian energy company Eni has partnered with Rome’s airport operator, Aeroporti di Roma (ADR), to supply sustainable fuels for both aircraft and ground vehicles (Warwick, 2021).

Airlines, including Alitalia and Air Italy, are actively participating in SAF projects by forming alliances with fuel producers to secure SAF supplies and reduce their carbon footprint. These collaborations often include long-term purchase agreements and joint research efforts to optimize SAF use in commercial flights. For example, in January 2024, Ryanair and Enilive announced a letter of intent for the long-term supply of up to 100,000 tons SAF at selected Ryanair airports across Italy (SAF Investor, 2024). Additionally, to encourage the use of SAF, airport operator SEA Prime announced in May 2024 that it would offer a € 1,000 incentive to SAF purchasers at its airports. The incentive is available from the second half of 2024 with a cap of €50,000 (SAF Investor, 2024).

With the growing project pipeline, strategic planning, policy support, and collaboration among stakeholders, Italy is well-positioned to sustain and enhance its competitive edge in the SAF market. As the demand for sustainable aviation fuel continues to rise, Italy’s SAF industry is poised for significant growth and development in the coming years.