Higgins Mdluli
Flying remains essential to global trade and tourism, but the aviation industry is under intense pressure to reduce carbon emissions. Facing an existential threat from rising environmental concerns, airlines committed to achieving net-zero emissions by 2050 during the 77th International Air Transport Association (IATA) Annual General Meeting in 2021.
A key strategy to meet these ambitious targets is the adoption of sustainable aviation fuels (SAFs), which promise significant reductions in CO2 emissions. IATA estimates that 65% of the planned emissions reductions will come from fuel changes. Critically, SAFs must be designed to work with existing aircraft engines, eliminating the need for costly modifications.
Derived from waste materials or non-essential crops, SAFs could offer as much as an 80% reduction in emissions compared to traditional jet fuels with which they are blended, according to IATA. However, high production costs remain a challenge to the attractiveness of the idea, requiring substantial investment to scale up production.
Despite this, the shift is gaining momentum. In 2022, countries who are members of the International Civil Aviation Organisation (ICAO) adopted a target of net-zero emissions for aviation by 2050, reinforcing the industry’s commitment.
South Africa’s sugarcane industry stands to benefit from converting sugarcane into ethanol, which is in turn converted into SAF, and has conducted studies with the Industrial Development Corporation (IDC) about the feasibility of a local SAF production facility.
Similarly, there is interest by South African sugarcane farmers for the use of sugarcane as a feedstock for fuel. This will provide farmers with a new market for their product, giving farmers stability and sustainability as the global price and supply of sugar fluctuates.
While the EU currently bans the use of food-based crops for fuel production, there is enough land under sugarcane cultivation in South Africa to meet local sugar demand, maintain food security, while also contributing to fuel production.
KwaZulu-Natal and Mpumalanga, the two sugarcane-producing regions, are largely characterised by hilly terrain, making sugarcane a more viable crop compared to alternatives. The local climate and soil composition further favour sugarcane cultivation over other crops, leaving few viable substitutes that will create as many jobs as sugar farming does.
For small-scale growers, the rising demand for sugarcane in SAF production offers a crucial new potential market for their produce. It not only ensures the continued use of their existing farmland but also provides a new revenue stream amid declining traditional markets.
India, a major sugar producer, is positioning itself as a global SAF leader. The country aims to produce 8 million to 10 million tons of SAF by 2040, contributing to its goal of blending 15% SAF into all domestic flights, while emerging as a top exporter. This initiative is projected to create significant economic opportunities, including over a million new jobs.
However, establishing the necessary infrastructure would require investments of $70 billion (R1.3 trillion) to $85bn by 2040. The potential payoff is substantial. Industry reports suggest that SAF adoption just in India could cut global aviation emissions by 20 million to 25 million tons annually and for Indian sugar farmers, the transition offers a new revenue stream, potentially boosting incomes by 10% to 15%.
But in South Africa, investment to create new uses for sugarcane is required. As is the case in India, government support is essential. Not only must there be a welcoming pro-business investment environment but large-scale investment into a SAF production facility would amount to approximately R7 billion. Therefore government policy needs to support investment into biofuels like SAF.
It would need to be offered to airlines landing in South Africa at the right price to stimulate local demand and would still be blended with traditional fuel.
Sugarcane can be a good feedstock for many environmentally friendly fuels.
Airlines are not waiting for countries to get on board but are actively sourcing greener fuels. Qatar Airlines, an airline in a country with plentiful oil, has committed to only using sustainable aviation fuel by 2050, saying SAFs must be available at commercial levels. In fact, Qatar Airlines is sponsoring the use of greener jet fuel on the Formula 1 circuit. F1 plans to reduce its carbon emissions by 19% for the current 2024 season with plans to reduce emissions by 50% by 2030.
The future is here, but South Africa risks being left behind if there is not a government and industry partnership to unlock investment into biofuels.
Local industry players like Sasol are also looking at making cleaner fuels but will require sufficient support.
The 24 000 small-scale and 1200 large-scale growers of sugarcane in Mpumalanga and KwaZulu-Natal are vital employers and economic anchors in their communities. Opening up new markets for sugarcane will help secure the livelihoods of about a million people who depend on the industry.
As airlines strive to balance economic imperatives with environmental responsibility, SAFs represent a critical solution to them and to sugarcane farmers in South Africa. Yet, achieving widespread adoption will demand coordinated efforts between governments, industries, and financiers to overcome cost barriers and accelerate the green transformation of aviation.
SA Canegrowers chairman Higgins Mdluli
BUSINESS REPORT