UPDATE 1-Sustainable aviation fuel costs must be lower, Exxon VP says

(Adds executive’s comment, paragraph 3)

By Rajesh Kumar Singh

CHICAGO, March 22 (Reuters) – Costs are the main obstacle to increasing the use of sustainable aviation fuel (SAF), Exxon Mobil Senior Vice President Jack Williams said on Friday.

SAF, a biofuel made from plant or animal materials including used cooking oil or agricultural waste, can reduce carbon emissions by up to 80% compared with traditional jet fuel. But it is up to five times more expensive than regular fuel.

“There’s one big negative and that’s the cost,” Williams said at a conference near Chicago. “As we think about how we want to grow SAF … we have got to focus on how do we minimize the costs.”

Williams described the Biden administration’s Inflation Reduction Act as the catalyzing action for biofuel production as well as carbon capture and storage and low carbon hydrogen. (Reporting by Rajesh Kumar Singh in Chicago Editing by Matthew Lewis)

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