Stock Markets January 27, 2026

Boeing and Technion Launch Development Program for Sustainable Aviation Fuel

Partnership targets commercial-scale SAF production as aviation wrestles with 2050 net-zero goal

By Nina Shah
Boeing and Technion Launch Development Program for Sustainable Aviation Fuel

Boeing and Israel’s Technion have moved from an initial feasibility stage into development of Sustainable Aviation Fuel (SAF) using feedstocks such as green hydrogen and captured carbon dioxide. The collaboration aims to progress toward competitive commercial production, while Boeing reiterates its pledge to field aircraft capable of flying on 100% SAF by 2030. The industry-wide objective of net-zero emissions by 2050 faces cost and scale obstacles, with an IATA forecast indicating SAF may represent only 0.7% of jet fuel by 2025.

Key Points

  • Boeing and Technion have moved from feasibility to development with the goal of achieving "competitive commercial production" of SAF using feedstocks including green hydrogen and carbon dioxide.
  • Boeing has committed to delivering commercial aircraft capable of flying 100% on SAF by 2030; the commercial aviation industry aims for net-zero emissions by 2050.
  • IATA forecasts SAF will comprise only 0.7% of jet fuel in 2025, highlighting short-term supply and adoption challenges that affect the aviation and energy sectors.

Boeing and the Technion - Israel Institute of Technology announced on Tuesday that they will begin development work to produce Sustainable Aviation Fuel (SAF) from feedstocks that include green hydrogen and carbon dioxide capture. The initiative follows completion of an initial feasibility phase and is intended to move toward what the partners described as "competitive commercial production."

SAF, often derived from waste streams such as used cooking oil, is viewed as a way to reduce aviation emissions significantly compared with conventional jet fuel. Despite those environmental benefits, SAF currently carries a steep premium, running roughly two to five times the price of traditional jet fuel.

The move comes as Boeing maintains its commitment to deliver commercial aircraft capable of operating on 100% SAF by 2030. The broader commercial aviation sector is pursuing a target of zero net emissions by 2050, a goal that industry participants and regulators have flagged as difficult to achieve without substantial increases in SAF supply and adoption.

Industry projections underline the scale of the challenge. The International Air Transport Association (IATA), a global body that represents 340 airlines, has forecast that SAF would account for only 0.7% of total jet fuel in 2025. IATA also cautioned that the 2050 target could be missed, reflecting uncertainty about whether supply, cost reductions and infrastructure can be delivered at the necessary pace.

Boeing cautioned that developing SAF at large scale could still take several years. The company and the Technion note that SAF can be produced from a wide array of feedstocks, including:

  • cover crops and other non-edible plants
  • agricultural and forestry waste
  • non-recyclable municipal waste
  • industrial plant off-gassing
  • green hydrogen and captured carbon dioxide

In a separate development, Boeing and Israel’s Ben-Gurion University said they are establishing a cybersecurity research centre focused on next-generation aviation and aerospace systems.

"We are working to enhance energy security, support the growth of the civil aviation industry, and create new economic opportunities through sustainable aviation fuel and other technologies," said Boeing Global President Brendan Nelson, who is currently in Israel.

Technion President Uri Sivan said the institution is on a mission to develop technologies for producing clean fuels that would make a "significant contribution to aviation - and no less importantly, to human health and the environment."

The partnership signals a continued push by key industry players to scale SAF production and related technologies, even as costs, feedstock sourcing and timelines remain central constraints.

Risks

  • High production costs: SAF currently costs about two to five times more than conventional jet fuel, posing a commercialization and adoption risk for airlines and fuel suppliers.
  • Scale and timing uncertainty: Boeing says large-scale SAF development could still take several years, creating execution risk for aircraft makers, airlines and fuel producers.
  • Potential shortfall in meeting industry targets: IATA's forecast that SAF will represent only 0.7% of jet fuel in 2025 suggests the 2050 net-zero goal could be missed, affecting airlines, regulators and related energy markets.

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