C-MACC Weekly “CRETER” (Climate etc.)
Sustainable Fuels – Fields of (Achievable) Dreams
- Renewable fuels have a very bright future in our view, but the focus will likely move away from capturing high credits like LCFS towards aviation fuel globally.
- Despite forays into electric and hydrogen power for aircraft, sustainable, low carbon jet fuel will likely dominate decarbonization efforts for many decades.
- Electricity and fuel cells will eat into gasoline and diesel demand quickly (next 10-15 years), but renewable (ground) transport fuel demand will still rise.
- Carbohydrate and waste-based fuels will be necessary; the current scale is small, and the investments needed are huge; newer/lower-cost technologies will emerge.
- Otherwise, we look at Eastman’s plans in France, more on renewable fuels, further ESG investing challenges, and ExxonMobil’s net-zero ambitions.
See PDF below for all charts, tables and diagrams