A number of sectors are challenging to electrify, including long-haul transport, shipping, and aviation.

The oil and gas industry has a key role to play in the production and adoption of cleaner, lower-carbon and alternative fuels and decarbonisation technologies to help these hard-to-abate sectors to lower emissions and advance the energy transition.

On road transport, the industry is working with the automotives industry to develop more efficient engines and low-carbon mobility technologies such as electric vehicles, biofuels, liquefied natural gas, ammonia and hydrogen fuel-cells.

The International Maritime Organization (IMO), which regulates shipping on behalf of the United Nations, published its revised greenhouse (GHG) strategy in 2023, which includes an enhanced ambition to reach net-zero GHG emissions from international shipping close to 2050.

The industry is leading on low-carbon shipping fuels, such as liquefied natural gas and sustainable biofuels, which can be used with existing engines and infrastructure. Given their experience with hydrogen, oil and gas companies are also well placed to scale up the development of ammonia as a fuel for long-distance shipping.

In the aviation sector, deep GHG emissions reduction will require alternative fuels. The UN specialised agency for aviation, the International Civil Aviation Organization (ICAO), recognises sustainable and lower-carbon aviation fuels as important GHG mitigation measures for the sector, and have included them as eligible fuels for the Carbon Offsetting Reduction Scheme for International Aviation (CORSIA) programme. Ipieca members are leading the development of sustainable and lower-carbon aviation fuels, producing them within their own refineries and partnering in joint ventures to construct new sustainable aviation fuel plants.

Examples of member action

  • Turning waste into low-carbon ethanol
    Map-pinCanada

    Renewable fuels offer a practical solution for decarbonising modes of transport for which electricity and hydrogen technologies are not well suited, such as aviation, trucking and shipping. Suncor began producing renewable fuel in the mid-2000s and currently operates Canada’s largest ethanol plant, which uses the starches from corn-based feedstock. The remaining material is used to make cattle feed and corn oil. In addition, over the past decade, Suncor has made strategic investments in advanced-generation technologies to create ethanol and methanol from waste streams such as non-recyclable municipal waste, industrial forestry residue and agricultural waste biomass, most of which reached pilot demonstration levels of development.

    Suncor is also a founding investor in LanzaJet which is focused on commercialising an alcohol-to-jet technology to produce sustainable aviation fuel (SAF) and renewable diesel from ethanol. The LanzaJet Freedom Pines Fuels plant opened in January 2024 is the first ethanol to SAF production facility in the world. The technology can produce fuel from a variety of sustainable feedstocks, such as agricultural waste and municipal solid waste, while reducing greenhouse gas emissions by more than 70 percent and particulate matter by 95 percent. The facility will produce over 45 million litres (10 million gallons) of SAF and renewable diesel annually – enough to fuel more than 1,300 Boeing 737-800 jets per year.

  • Initiative to promote SAF use and decarbonise aviation
    Map-pinJapan

    ENEOS is at the forefront of a groundbreaking project aimed at decarbonising the aviation sector by promoting the use of sustainable aviation fuel (SAF). SAF is a crucial innovation in the aviation industry, offering significant reductions in CO₂ emissions compared to conventional jet fuel. However, to encourage widespread adoption of SAF, ENEOS, in collaboration with six other industry leaders, has launched the world’s first trading scheme for Scope 3 environmental value.

    Scope 3 environmental value refers to the indirect CO₂ reductions achieved when SAF is used, particularly in areas such as air cargo transport and business travel. This new initiative seeks to establish a platform where companies across the aviation value chain can trade these emissions reductions. By doing so, it aims to spread the costs associated with SAF use and make it more financially viable for airlines, fuel suppliers, forwarders, and airports to adopt SAF.

    The demonstration test, set to take place at Narita Airport, is the first step in validating the concept. Participants like ITOCHU, Japan Airlines, and Narita International Airport Corporation will contribute to the development of this platform, ensuring it aligns with sustainability goals and supports the broader adoption of SAF. ENEOS’s involvement is critical as they provide both the SAF and the Scope 3 environmental value.

    The ultimate goal is to create a scalable system that can be expanded beyond Japan, contributing to global decarbonisation efforts and ensuring the aviation industry’s long-term sustainability. This project sets a powerful precedent for how environmental value trading can drive innovation and systemic change in industries that are difficult to decarbonise.

    Learn more

  • Supplying sustainable aviation fuel (SAF) to Norwegian airline

    Moeve is driving the transition to sustainable aviation fuel (SAF), supporting airlines like Norwegian in reducing aviation emissions. In 2024, Moeve signed a supply contract with Norwegian, enabling flights from Las Palmas Airport (Spain) to Norway, Sweden, and Denmark to operate using SAF.

    Moeve produces SAF at its La Rábida Energy Park (Huelva, Spain) using used cooking oils, a second-generation biofuel that reduces CO2 emissions by up to 90% compared to traditional kerosene. The company supplies SAF across Spain’s major airports, reinforcing its role in sustainable aviation.

    To secure future SAF supply, Moeve is developing a new plant with a production capacity of 0.5 million metric tonnes of SAF and renewable diesel, forming part of Southern Europe’s largest second-generation biofuels complex by 2026. By 2030, Moeve plans to produce 2.5 million metric tonnes of biofuels annually, including 800,000 metric tonnes of SAF, enough to fuel 2,000 flights worldwide.

    This initiative aligns with the European Commission’s ‘Fit for 55’ strategy and RefuelEU Aviation, aiming for 70% SAF use by 2050. Through continued innovation and partnerships, Moeve is making sustainable air travel a reality.

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  • Renewable fuel from waste
    Map-pinSpain

    Repsol has achieved a significant milestone in the decarbonisation process of transport with the launch of the first plant in the Iberian Peninsula dedicated to producing renewable fuels. Located in Cartagena, Spain, this EUR 250 million facility has the capacity to produce 250,000 tonnes of renewable diesel and sustainable aviation fuel (SAF) annually, made from organic waste such as used cooking oil. These fuels offer a quick and cost-efficient solution for the decarbonisation process of road, maritime and aviation transport.

    The company plans to expand this initiative with a second plant in Puertollano by 2025 and further facilities before 2030, aiming for a renewable fuel production capacity of 2.2 million tonnes by 2030.

    This project is part of Repsol’s broader strategy to transform its industrial complexes into multi-energy hubs, focusing on energy efficiency, circular economy, and renewable hydrogen. With this initiative, Repsol continues to lead the renewable fuel market in Spain and Portugal, contributing to the country’s energy independence and the global decarbonisation effort.

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View the Ipieca Principles toolkit and Ipieca-WBCSD SDG Roadmap for more suggested actions, useful resources and reference points.

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