What Are the Policy Impacts on Renewable Jet Fuel in Sweden?

Jenny Trinh, Fumi Harahap, Anton Fagerström and Julia Hansson
Additional contact information
Jenny Trinh: Department of Energy Technology, KTH Royal Institute of Technology, SE-114 28 Stockholm, Sweden
Fumi Harahap: Department of Energy Technology, KTH Royal Institute of Technology, SE-114 28 Stockholm, Sweden
Anton Fagerström: Sustainable Society, Energy, IVL Swedish Environmental Research Institute, Box 530 21, SE-400 14 Gothenburg, Sweden
Julia Hansson: Sustainable Society, Energy, IVL Swedish Environmental Research Institute, Box 530 21, SE-400 14 Gothenburg, Sweden

Energies, 2021, vol. 14, issue 21, 1-30

Abstract: The aviation industry contributes to more than 2% of global human-induced CO 2 -emissions, and it is expected to increase to 3% by 2050 as demand for aviation grows. As the industry is still dependent on conventional jet fuel, an essential component for a carbon-neutral growth is low-carbon, sustainable aviation fuels, for example alternative drop-in fuels with biobased components. An optimization model was developed for the case of Sweden to examine the impacts of carbon price, blending mandates and penalty fee (for not reaching the blending mandate) on the production of renewable jet fuel (RJF). The model included biomass gasification-based Fischer–Tropsch (FT) jet fuel, Power-to-Liquid (PTL) jet fuel through the FT route and Hydrothermal liquefaction (HTL)-based jet fuel. Thus, this study aims at answering how combining different policies for the aviation sector can support the production of RJF in Sweden while reducing greenhouse gas (GHG) emissions. The results demonstrate the importance of implementing policy instruments to promote the production of RJF in Sweden. The blending mandate is an effective policy to both promote RJF production while reducing emissions. The current level of the penalty fee is not sufficient to support the fuel switch to RJF. A higher blending mandate and carbon price will accelerate the transition towards renewable and sustainable fuels for the aviation industry.

Keywords: policy mix; sustainable aviation fuels; biofuels; electrofuels; supply-chain optimization; spatial and temporal analysis; techno-economic analysis; Sweden (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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