Oil Crisis Makes Green Jet Fuel Cheaper Than Ever

When Iran closed the Strait of Hormuz earlier this year, cutting off 20 percent of the world's oil supply, airlines faced a crisis that might just save the planet.

Vancouver aviation analyst Mark Miller watched fuel prices skyrocket and canceled his family's dream trip to Rome. Airlines began grounding thousands of flights as jet fuel reserves in the UK, Germany, and France plummeted toward empty.

But the crisis revealed something remarkable. For the first time ever, sustainable aviation fuel (SAF) now costs about the same as conventional jet fuel.

"Right now, conventional jet fuel looks to be twice as expensive going into the summer travel season," says Lauren Riley, chief sustainability officer for United Airlines. "This is the first time in my career that we're actually having conversations about it."

SAF cuts emissions by up to 80 percent and works in existing aircraft without any modifications. Made from used cooking oil, agricultural waste, and leftover restaurant grease, it's been technically viable for years. The problem was always the price tag, running two to five times more than regular fuel.

That math just changed overnight.

United Airlines has already partnered with Microsoft and energy giant Phillips 66 to scale production and unlock 11 million gallons of SAF. Delta, American Airlines, and Cathay Pacific are racing to secure their own supplies.

The technology is surprisingly simple, according to Joseph Ran from World Energy, which became the first commercial SAF producer in 2016. "You just add an additional blending step of mixing the SAF and the fossil fuel," he says.

American farms are especially well positioned to lead this shift. The same infrastructure that produces corn ethanol and soy biofuels can pivot to aviation fuel production almost immediately.

The Bright Side

The oil shortage is forcing an innovation that climate advocates have been pushing for decades. What regulation couldn't accomplish, market forces are delivering almost overnight.

Domestic travel is getting a boost too. Instead of navigating uncertain international routes, families like the Millers are discovering closer destinations. Mark Miller traded Rome's ancient ruins for British Columbia's Okanagan Valley, just one hour from home by flight.

The crisis that grounded millions of summer travelers might be remembered as the moment aviation went green.