Delta’s Historic Partnership with Shell and Portland International Airport Marks Milestone in Sustainable Aviation Fuel Deployment

In September 2024, Delta Air Lines, in collaboration with Shell Aviation and Portland International Airport (PDX), achieved a major milestone by delivering over 400,000 gallons of SAF into PDX’s fuel system. This marked the first commercial-scale SAF uplift at the Oregon airport, demonstrating the intricate partnerships and infrastructure investments required to scale sustainable aviation fuel adoption across the United States. The move highlights both the opportunities and challenges of decarbonizing aviation, a sector responsible for a significant share of global carbon emissions. As SAF currently accounts for only about 0.53% of global jet fuel consumption and costs substantially more than conventional fuels, such Partnerships are critical to advancing climate goals and establishing the supply chains needed for industry-wide transformation.

The Delta-Shell-PDX partnership underscores how Airlines, fuel suppliers, and airport authorities can work together to meet ambitious climate targets, even as the aviation industry faces daunting economic and logistical barriers. Their achievement not only sets a precedent for other airports and carriers but also provides a blueprint for integrating SAF into existing fuel systems, an essential step toward reducing aviation’s environmental footprint.

Background and Context of Sustainable Aviation Fuel Development

Sustainable aviation fuel is widely recognized as one of the most promising solutions for decarbonizing commercial aviation, which currently contributes an estimated 2-3% of global greenhouse gas emissions. Unlike ground transportation, where electrification is rapidly advancing, aviation’s unique energy density and weight requirements make SAF a more viable near-term solution. SAF can reduce lifecycle carbon emissions by up to 80% compared to conventional jet fuel, while remaining compatible with existing aircraft engines and airport infrastructure.

According to the International Air Transport Association (IATA), SAF could provide up to 65% of the emissions reductions necessary for aviation to achieve net-zero carbon Emissions by 2050. However, scaling production remains a challenge: global SAF production hit 1 million tonnes in 2024, double the previous year but still far below the projected demand of 1.5 million tonnes. Industry leaders have voiced concerns about the slow pace of progress, with IATA’s Director General Willie Walsh noting that “SAF volumes are increasing, but disappointingly slowly.”

SAF can be produced through nine certified pathways, with the most common method, hydroprocessed esters and fatty acids (HEFA), converting waste oils, fats, and other biomass into jet fuel. Other pathways, such as alcohol-to-jet and synthetic paraffinic kerosene, offer different feedstock options and carbon intensity profiles. The sustainability of SAF hinges on its closed-loop carbon cycle: the CO₂ emitted during combustion is offset by the CO₂ absorbed during feedstock growth, provided the feedstocks and processes are carefully managed.

Delta’s Strategic Approach to Sustainable Aviation Fuel

Delta Air Lines has positioned itself as an industry leader in SAF adoption. In 2021, the airline pledged to use SAF for at least 10% of its fuel by 2030, a commitment that requires procuring over 400 million gallons of SAF annually by the decade’s end. Delta has already secured long-term contracts for 200 million gallons, representing about half of its 2030 goal.

The airline’s focus on SAF is driven by the fact that approximately 90% of its direct (Scope 1) emissions stem from jet fuel. As Delta’s senior vice president of sustainability, Gail Grimmett, explained, “Our Scope 1 is massive. Anything beyond Scope 1 is like a rounding error.” Delta’s SAF usage has grown rapidly, with 3.5 million gallons blended in 2023 and over 13 million gallons delivered in 2024, more than triple the previous year. These efforts have helped Delta avoid approximately 32,000 metric tons of CO₂ emissions from operations at major airports.

Beyond procurement, Delta invests in SAF production infrastructure and policy advocacy. The airline supports a Minnesota production hub benefiting from a $1.50 per gallon state tax credit and participates in industry coalitions to promote favorable SAF policies. Delta’s collaborative approach reflects a broader industry recognition that achieving climate goals requires cooperation rather than competition among airlines.

“This isn’t a competition amongst us. We’ve gotta work together on this.” – Gail Grimmett, Delta Air Lines

The Portland International Airport Partnership Details

The Delta-Shell-PDX partnership stands as a significant step in expanding SAF’s reach in the United States. The Delivery of over 400,000 gallons of blended SAF to PDX in September 2024 marked the airport’s first commercial-scale SAF operation. The fuel was produced in the U.S. from waste-derived feedstock, with Shell supplying the neat SAF to Zenith Terminal in Portland, where it was blended with traditional jet fuel before being delivered to PDX.

This delivery required coordination among multiple stakeholders and leveraged existing infrastructure, demonstrating that SAF can be integrated into conventional fuel systems without major new investments. Delta’s SAF director, Charlotte Lollar, highlighted the importance of collaboration, saying, “Every SAF delivery is a powerful example of how industry collaboration can unlock markets for sustainable aviation fuel.”

The Port of Portland’s support aligns with its broader sustainability commitments. Zenith Energy’s Portland terminal, a key player in the supply chain, has committed to transitioning 100% of its crude oil storage to renewable fuels by 2027. Already, 66% of its storage is dedicated to renewables, making it a leading facility in the region.

Infrastructure, Economics, and Policy Frameworks

Supply Chain and Production Capacity

The SAF supply chain is complex, involving feedstock collection, production, blending, storage, and distribution. Zenith Energy’s Portland terminal has become a key hub, receiving its first SAF shipment from Montana Renewables in June 2023. Montana Renewables is expanding its capacity from 30 million to 300 million gallons annually by 2028, supported by a $1.44 billion U.S. Department of Energy loan. This expansion will double feedstock purchases to 3 billion pounds per year, positioning the facility as a global SAF leader.

Shell Aviation plays an intermediary role, leveraging its logistics expertise to move SAF from production sites to airports. The company aims for 10% of its aviation jet fuel sales to be SAF by 2030, necessitating significant investment in blending and distribution infrastructure.

Book-and-claim systems are emerging to address supply limitations, allowing airlines to purchase the environmental attributes of SAF even when the fuel is not physically delivered to their departure airport. This mechanism supports broader market access and demand for SAF.

“The integration of SAF into established fuel infrastructure demonstrates how sustainable fuels can leverage existing petroleum networks while gradually transforming their composition toward renewables.”

Economic and Regulatory Challenges

SAF remains significantly more expensive than conventional jet fuel, costing 3–5 times as much on average. The cost premium is due to limited scale, feedstock constraints, and higher processing costs. In Europe, additional compliance fees linked to regulatory mandates have further increased prices.

Policy support is crucial for bridging the economic gap. The U.S. federal 45Z Clean Fuel Production Credit, created by the Inflation Reduction Act, provides up to $1.75 per gallon for SAF, with additional incentives at the state level in Minnesota and emerging programs in Illinois, Michigan, and Nebraska. Oregon’s Clean Fuels Program and California’s partnership with Airlines for America are also driving market development.

Internationally, harmonized standards and incentives are essential due to aviation’s global nature. The IATA advocates for technology- and feedstock-neutral policies, with mandates used alongside innovation support and cost-reduction programs. Compliance with schemes like CORSIA adds further financial pressure, reinforcing the need for affordable, high-integrity SAF.

Environmental Benefits and Industry Implications

SAF offers significant environmental advantages beyond CO₂ reduction. It can cut lifecycle greenhouse gas emissions by up to 80% and dramatically reduce particulate and sulfur emissions, improving air quality around airports. The use of waste-derived feedstocks also supports circular economy principles, turning waste oils and fats into valuable fuel.

However, scaling SAF raises questions about feedstock sustainability, land use, and lifecycle impacts. Waste feedstocks provide the greatest carbon benefits but are limited in supply, prompting research into purpose-grown energy crops and synthetic fuels. Robust lifecycle assessments and monitoring are essential to ensure claimed emissions reductions are real and additional.

The shift to domestic SAF production enhances energy security and supports rural economies, especially as recent policy changes require American-controlled production and North American feedstocks. Water management and land use must be carefully considered to avoid unintended consequences as production expands.

Conclusion

The Delta-Shell-Portland partnership for the first commercial-scale SAF uplift at PDX is a landmark in aviation’s transition to Sustainability. It demonstrates the technical, logistical, and collaborative requirements for integrating SAF into existing airport fuel systems and sets a replicable model for other airports and regions. While SAF currently accounts for a small fraction of global jet fuel use, the Portland achievement shows the potential for rapid growth through coordinated investment and policy support.

Looking ahead, scaling SAF will demand continued investment in production capacity, technological innovation to address feedstock and cost challenges, and robust policy frameworks at all levels. The experience gained from early deployments will inform industry best practices and infrastructure planning, supporting the broader goal of aviation decarbonization by 2050. As more airlines, airports, and fuel suppliers join the effort, the foundation is being laid for a sustainable future for air travel.

FAQ

What is sustainable aviation fuel (SAF)?
SAF is a renewable alternative to conventional jet fuel, produced from waste oils, fats, biomass, or synthetic sources. It can reduce lifecycle carbon emissions by up to 80% and is compatible with existing aircraft and infrastructure.

Why is SAF important for aviation?
SAF is currently the most viable near-term solution for decarbonizing aviation, as electrification is not practical for most commercial flights. It provides substantial emissions reductions and can be integrated using existing supply chains.

What challenges does SAF face?
Key challenges include high production costs, limited feedstock availability, the need for infrastructure adaptation, and the requirement for supportive policy frameworks. Scaling up production and achieving cost parity with conventional fuel remain major hurdles.

How does the Portland International Airport SAF delivery impact the industry?
The first commercial-scale SAF uplift at PDX demonstrates the feasibility of integrating SAF into conventional airport fuel systems and provides a model for industry-wide adoption through collaboration and infrastructure adaptation.

What role do policy incentives play in SAF adoption?
Policy incentives such as federal and state tax credits, low-carbon fuel standards, and regulatory mandates are essential for bridging the economic gap between SAF and conventional jet fuel, encouraging investment and market growth.

Sources: Delta News Hub