Guide to Key Terms and Concepts
in the SAF Landscape

The sustainable aviation fuel (SAF) landscape is filled with technical terms and concepts that can be challenging to navigate. To help you understand how the aviation industry is working toward large-scale emissions reduction, we’ve created this guide to break down commonly used terms across the lower-carbon fuel value chain.

Sustainable Aviation Fuel (SAF)

SAF, also known as alternative jet fuel, is produced from renewable resources (feedstocks) such as waste oils, agricultural residues, or other biomass. It is typically blended with conventional jet fuel and used as a “drop-in” replacement, meaning it can be used in existing aircraft without modifications and distributed through current fuel infrastructure. SAF has the potential to significantly reduce the carbon intensity of air travel. While SAF contains the same hydrocarbons as traditional jet fuel and produces similar levels of carbon dioxide when burned, the key difference lies in its life cycle. The emissions released from burning SAF are part of an existing carbon cycle, as the feedstocks used to produce it absorb CO₂ during their growth. In contrast, conventional jet fuel is derived from fossil fuels, releasing carbon that has been sequestered underground for millions of years. As a result, SAF offers a substantial life-cycle reduction in emissions compared to traditional jet fuel.

What SAF Means for
Decarbonizing Aviation:

SAF is a critical tool for reducing aviation emissions and is already in use today, albeit in limited quantities. While scaling SAF production remains a challenge, the industry is actively working to unlock its full potential.

Life-Cycle Emissions
(Life-Cycle Assessment - LCA

Life-cycle emissions refer to the total greenhouse gas (GHG) emissions generated throughout the entire life cycle of a product, service, or process—from raw material extraction to disposal. A life-cycle assessment (LCA) evaluates the environmental impact of a product from “cradle to grave,” providing a comprehensive analysis of its emissions.

What LCAs Mean for SAF:

In the SAF landscape, LCAs are used to measure the climate impact of SAF by assessing emissions at every stage, including feedstock cultivation, processing, transportation, and combustion. This detailed analysis is essential for validating SAF’s environmental benefits compared to fossil fuels.

Offtake Agreement

An offtake agreement is a contract between a producer (or seller) and a buyer, where the buyer agrees to purchase a specified amount of product under agreed-upon terms. These agreements can include short-term pricing (e.g., a fixed premium tied to global jet fuel prices) or long-term pricing (e.g., a dynamic price linked to an index).

What Offtake Agreements Mean for SAF:

Offtake agreements play a crucial role in the SAF industry by creating long-term demand and securing future supply. They provide stability for both buyers and producers, reducing risk and encouraging investment in SAF production. This, in turn, supports the scaling of SAF to meet global aviation needs.

Guide to Key Terms and Conceptsin the SAF Landscape