Rystad reports that oil majors have over 40 biofuel projects planned by 2030.

Rystad, a consultancy, said that major oil and gas companies are investing more in biofuels, betting on sustainable aircraft fuel (SAF). By 2030, 43 projects should be completed, the report stated.

Energy research firm says that industry giants like ExxonMobil and Shell could increase production by 286,000 barrels a day.

SAF is produced by using wastes and residues like organic crops or used cooking oils. It emits the exact same amount of CO2 as kerosene. It is considered to be less polluting because it is made from plants or leftovers, rather than new oil that releases more greenhouse gases.

Nearly 2% of the global carbon dioxide emissions are attributed to the aviation industry.

Lars Klesse is an analyst at Rystad who specializes in bioenergy research.

BP has the highest announced production capacity of 130,000 bpd.

The oil majors have strengthened their positions in the renewable energy sector through strategic acquisitions such as BP’s purchase of Bunge Bioenergia, and Chevron’s takeover Renewable Energy Group.

SAF is growing in popularity despite its higher price compared to jet fuel based on petroleum. The European Union requires a minimum 2% SAF usage in aviation by 2020, while the Biden White House wants to meet the entire U.S. aviation demand by 2050.

(source: Reuters)