SAF ingredients, manufacturing process and ingredient fraud issue

Introduction

This time, we will dig a little deeper into SAF (Sustainable Aviation Fuel).
Regarding SAF, we published an article titled " Latest Trends and Prospects for SAF in Japan " on February 3, 2025, focusing on the definition of SAF, policy trends, and airline initiatives.
Since many people seem to be very interested in SAF, in this article we will go a step further and provide detailed information about SAF's raw materials and manufacturing process, as well as delve into the issue of "waste oil counterfeiting."

As the need for decarbonization increases worldwide, SAF will play an extremely important role in the aviation industry. However, there are still many challenges to be overcome in terms of supply chain transparency and certification systems that support the reliability of SAF.

Main raw materials and manufacturing technology of SAF

SAF has a wide variety of raw materials and manufacturing processes. The main raw material classifications and representative technologies are summarized below.

Used Cooking Oil (UCO)

In recent years, there have been reports of possible fraudulent activities regarding used cooking oil (UCO), which is widely used as a raw material for SAF, mainly in Europe.
In September 2024, The Guardian noted this:
" Out of 1,500 global climate policies, only 63 have really worked. That's where green spin has got us ."
The rising prices of SAF raw materials can be cited as the background to this fraud.
Due to the rising cost of SAF raw materials, it has been pointed out that fraudulent practices have been taking place in which new palm oil and other materials are used instead of waste oil and are labelled as SAF raw materials.
Such fraudulent practices not only undermine the evidence of CO2 reduction effects, but could also deal a serious blow to the credibility of ESG investors and airlines.
In particular, if SAFs are tied to international carbon credits, the impact of any fraud could ripple across the entire market.

Animal fat

It is a fat produced as a by-product of meat processing.
Like UCO, it is used in the HEFA method and has a proven track record, especially in Europe and the United States.
However, there are said to be issues with recovering raw materials and ensuring uniform quality, and a stable supply is required.

Municipal Solid Waste

SAF's ingredients, manufacturing process and ingredient fraud issues | Attorney Mitsuru Misawa Official Website

Cellulosic Biomass

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Power-to-Liquid (PtL) Technology

SAF's ingredients, manufacturing process and ingredient fraud issues | Attorney Mitsuru Misawa Official Website

The problem of counterfeiting of used oil and its impact

In recent years, there have been reports of possible fraudulent activities regarding used cooking oil (UCO), which is widely used as a raw material for SAF, mainly in Europe.
In September 2024, The Guardian noted this:
" Out of 1,500 global climate policies, only 63 have really worked. That's where green spin has got us ."
The rising prices of SAF raw materials can be cited as the background to this fraud.
Due to the rising cost of SAF raw materials, it has been pointed out that fraudulent practices have been taking place in which new palm oil and other materials are used instead of waste oil and are labelled as SAF raw materials.
Such fraudulent practices not only undermine the evidence of CO2 reduction effects, but could also deal a serious blow to the credibility of ESG investors and airlines.
In particular, if SAFs are tied to international carbon credits, the impact of any fraud could ripple across the entire market.

Issues and solutions regarding traceability in the SAF supply chain

To combat this issue of counterfeiting, it is essential to ensure the traceability of raw materials. In Europe, certification systems such as the International Sustainability and Carbon Certification (ISCC) have been introduced, which require the management of the history of raw materials from their origin to their manufacture, distribution, and use ( ISCC official website ).

In recent years, there have been reports of possible fraudulent activities regarding used cooking oil (UCO), which is widely used as a raw material for SAF, mainly in Europe.
In September 2024, The Guardian noted this:
" Out of 1,500 global climate policies, only 63 have really worked. That's where green spin has got us ."
The rising prices of SAF raw materials can be cited as the background to this fraud.
Due to the rising cost of SAF raw materials, it has been pointed out that fraudulent practices have been taking place in which new palm oil and other materials are used instead of waste oil and are labelled as SAF raw materials.
Such fraudulent practices not only undermine the evidence of CO2 reduction effects, but could also deal a serious blow to the credibility of ESG investors and airlines.
In particular, if SAFs are tied to international carbon credits, the impact of any fraud could ripple across the entire market.

summary

In Japan, the government is also leading an effort to expand the supply of SAF and strengthen its certification, and the Ministry of Economy, Trade and Industry has set a goal of increasing the supply volume to 300,000 kiloliters per year by 2030.
" Supply Targets for Sustainable Aviation Fuel (SAF) in 2030 " (Ministry of Economy, Trade and Industry, September 2024)
For companies, it will be important to contract with reliable suppliers when selecting raw materials and check whether they have obtained certifications such as ISCC.
It is also necessary to establish an appropriate monitoring system for SAF within the company.

SAF is a key element in supporting decarbonization in the aviation industry, and at the same time, transparency of the supply chain is essential to ensure reliability.
Going forward, governments, companies, investors, and users will need to work together to foster a fraud-free and sustainable aviation fuel market.