Scaling Clean Technology Offtakes: A Corporate Playbook for Net Zero
Sustainable aviation fuel (SAF) and green hydrogen (GH2) are critical for decarbonizing hard-to-abate sectors, like aviation, energy and heavy industry. This paper presents a playbook for businesses to engage and stimulate demand for SAF and GH2 through various offtake agreements.
Sustainable aviation fuel (SAF) and green hydrogen (GH2) are critical for decarbonizing hard-to-abate sectors, like aviation, energy and heavy industry. This paper presents a playbook for businesses to engage and stimulate demand for SAF and GH2 through various offtake agreements.
According to the International Energy Agency, SAF could cut aviation emissions by up to 65%, and GH2 could make up 8% of total energy use by 2050. Yet, the development of both lags their respective targets, and their production must be ramped up to meet the 1.5°C climate goal.
The high costs of clean technologies limit demand, although recent efforts in Europe and the US are reducing these costs. Overcoming these challenges needs strong collaboration across public and private sectors to reduce investment risks and encourage demand. The First Movers Coalition of the World Economic Forum plays a key role by promoting dialogue and finding solutions to improve the uptake of these technologies.