Oil producers in the Middle East have been experiencing disruptions to maritime traffic through the Strait of Hormuz. But this could present a strategic opportunity to rethink how energy infrastructure can be deployed in an increasingly uncertain world.
The global transition towards low-carbon energy sources is often framed as a challenge for fossil-fuel-producing nations. Yet many of the assets developed during the oil era, including ports, refineries, tanker fleets, aviation hubs and government-operated investment funds, could accelerate the transition to clean energy.
Here’s how oil producers in the Middle East could leverage these assets to become architects of a global supply chain for sustainable aviation fuel (SAF).
Sustainable-fuel demand gap
The aviation sector produces more than 2% of global anthropogenic carbon dioxide emissions and is under increasing regulatory and societal pressure to decarbonize. For long-haul routes, electric and hydrogen-fuelled planes are many years away. But in the near term, SAF, which is produced from waste oils and fats, agricultural residues, industrial waste gases and wastewater sludge, and biomass-based or synthetic feedstocks, is a credible option for delivering emissions reductions this decade1 (see go.nature.com/4wrwfws).
A cleaner future for flight — aviation needs a radical redesign
Current production of SAF remains low, however, making up less than 1% of global jet-fuel use. Bridging this gap will require innovative technologies and policies, and strategic leadership. But the benefits stretch beyond aviation.
For the Gulf Cooperation Council (GCC) — which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) — and neighbouring oil-producing nations, developing a SAF industry offers a powerful means of diversifying economies and establishing a fresh revenue stream as global oil demand begins to plateau.
It would also generate employment across the SAF supply chain — from feedstock collection and refining to research, certification and port operations — building a workforce that is equipped for future-facing industries.
At first glance, the Gulf States might seem to be unlikely champions of SAF. Advocates for biofuel development in the region are often told that there is no biomass in the desert. However, this dismissal overlooks the area’s advantages: world-class energy infrastructure, globally connected transport hubs and government investment capacity that is unmatched in most other regions.
... continue reading