Experts Identify Barriers to Aviation Biofuel Expansion
Technical, cost, and policy hurdles currently limit the widespread adoption of co-processing bio feedstocks in refineries.
Updated on Oct. 16, 2026 in Oil and Gas
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Industry experts are highlighting significant infrastructure and regulatory obstacles to scaling sustainable aviation fuel production. Despite current efforts, inconsistencies in European Union policies and high capital costs remain primary roadblocks.
Why it matters
Refineries must achieve greater regulatory alignment and technical standardization to justify the significant investments required to meet European sustainable fuel mandates.
European refineries typically manage 5-10 percent bio feedstock without equipment changes, but upgrading older sites requires between $200 million and $400 million in capital investment.
The players
IATA
The International Air Transport Association is a trade association for the world's airlines that supports aviation sustainability and safety.
European Commission
This executive branch of the European Union is responsible for proposing legislation and implementing decisions across member states.
The details
Refineries currently integrate used cooking oil or synthetic e-crude into existing crude oil streams to produce sustainable fuel. However, higher blending ratios often necessitate expensive hydrocracker upgrades or metallurgy adjustments to manage increased acidity.
Timeline
October 2026: IATA World Sustainability Symposium held in Brussels.
Market Landscape
This bottleneck reflects the broader struggle to scale sustainable aviation fuel mandates within the current European energy landscape. Companies face a competitive race to upgrade aging facilities while navigating a fragmented regulatory environment across member states.
For the average consumer, these production hurdles mean the transition to sustainable aviation fuel will likely occur gradually rather than immediately. High upgrade costs for refineries may eventually influence the price of airline tickets as companies pass capital expenses to the market.
The takeaway
The transition to sustainable aviation fuel depends on harmonizing national laws to reduce investment risk for refiners. Stakeholders should monitor future updates on e-HEFA classification to see if regulatory shifts encourage faster infrastructure upgrades.
Further reading
For broader context on energy sector developments, visit our Oil and Gas section.
Source note: This article includes information reported by Argusmedia.
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