Metafuels chief says SAF mandates will drive down eSAF costs over time

Saurabh Kapoor, chief executive of Swiss methanol-to-jet fuel start-up Metafuels, has defended government mandates requiring airlines to use sustainable aviation fuel. He said they are necessary to establish an industry that could otherwise struggle to get off the ground.

Kapoor spoke after the opening of Metafuels' first demonstration plant. He said the company intends to begin supplying synthetic SAF, known as eSAF, to airlines from 2030, and plans to build several production facilities. eSAF remains considerably more expensive than conventional jet fuel, he acknowledged, but he said that gap should narrow as more plants come online and the technology matures.

Asked about the price outlook, Kapoor said it was hard to compare current jet fuel costs, pre-crisis prices, or projected 2035 levels, given ongoing volatility. Metafuels' priority, he said, is to commercialise its methanol-based process and scale it to fit future energy systems not based on petroleum.

Kapoor said he supports the European Union's ReFuel EU policy. Without such a mandate, he argued, the initial investment needed to launch an eSAF industry would likely not materialise. Under ReFuel EU, airports in the bloc must ensure a rising share of uplifted jet fuel is SAF, starting at 2% in 2025 and climbing to 70% by 2050. A separate sub-target requires eSAF to make up 1.2% of jet fuel from 2030, increasing thereafter.

Kapoor framed mandates and early commitments from airlines as complementary tools for attracting capital. Government policy and airline pump-priming together, he said, create the conditions needed for the sector to expand and, eventually, lower costs.