TotalEnergies CEO anticipates EU mandate on sustainable aircraft fuel being dropped in the future

TotalEnergies CEO Patrick Pouyanne stated on Wednesday that he expects the European Union will water down its mandate in the future to include sustainable aviation fuel, similar to the recent decision of the bloc to drop the proposed ban on combustion-engine vehicles from 2035. Last year, the EU required that 2% jet fuel available at airports be sustainable aviation fuel. This requirement will increase to 6% by 2030 and 20% by 2035.

Pouyanne, speaking at a World Economic Forum panel on clean fuels, said: "All airline companies are fighting against the 6% SAF requirement which is?frankly easy to achieve...I'll bet that the SAF regulations in Europe will follow the same fate as the car regulation."

TotalEnergies produces SAF in several refineries and plans to expand. However, it has delayed investment to increase capacity because its clients did not want to purchase more than was required to comply with EU regulations, he stated.

SAF is up to four times as expensive as jet fuel refined from crude oil. Pouyanne has rejected the excuse that airlines have used to explain their inability to purchase SAF by blaming it on the lack of production.

Pouyanne stated, "Today, I'm facing my customers, the airline companies of Europe, who have made a massive lobbying effort accusing us of not investing sufficiently, which is totally wrong." "I'll be able to?provide 10% of SAF for the airline companies in Europe, by 2030. But...everyone is dreaming that they can have these biofuels made from oil at the same cost as jet fuel, but this is not true."

Due to the regulatory uncertainty, the CEO said he would likely lower his investments in low carbon?fuels.

He said: "I am afraid that, since it is a regulated industry, if the targets are changed, I will lose my investment in biorefineries." Reporting by America Hernandez, Dmitry Zhdannikov, and Louise Rasmussen in Davos. Editing by Bernadettebaum.

(source: Reuters)