Xuan Gu Bao·2025-06-02 23:34Industry Insights - The International Air Transport Association (IATA) projects that sustainable aviation fuel (SAF) production will double to 2 million tons by 2025, accounting for 0.7% of airline fuel consumption [1] - The European Union has set a mandatory SAF blending target of over 70% by 2050, with a projected demand exceeding 40 million tons [1] - Over 50 airlines have committed to increasing SAF usage to 5-30% of total fuel consumption by 2030, with most pledging at least 10% [1] - By 2050, it is expected that 65% of emissions reductions in aviation will come from biofuels, with SAF demand rising from 50,000 tons in 2023 to 18 million tons by 2030, representing 5.2% of total fuel demand [1] - Long-term projections indicate SAF demand could reach 350 million tons by 2050, making up 65% of total fuel needs [1] Company Developments - Pengyao Environmental has announced upgrades to its existing biodiesel projects, aiming to become the first private listed company to achieve mass production of SAF [3] - Hainxin Energy currently has an SAF production capacity of 50,000 tons [4] - Open Source Securities notes that while China's SAF production facilities have profit potential, they currently face insufficient orders and low overall profitability [2]