Aviation calls for synthetic blending quotas, tax incentives

Synthetic kerosene prices will fall as production capacity increases and renewable electricity costs decline—but low-margins mean the aviation industry requires help to go green

Synthetic jet fuel may be widely seen as the best long-term replacement for kerosene, but policymakers would have to make its use mandatory and provide tax incentives for the aviation sector to quit fossil fuels. Synthetic kerosene is 4-6 times more costly than kerosene, according to Joris Melkert, senior lecturer in aerospace engineering at Delft University of Technology. Such costs are daunting for the aviation industry, which suffered its worst ever decline in 2020 due to the coronavirus pandemic, losing an estimated $118.5bn, according to trade body the International Air Transport Association. Yet Melkert is optimistic Europe’s aviation sector will adopt synthetic fuels gradually, citing