Union Pacific has begun planning its participation in the sustainable aviation fuel (SAF) distribution market. The US railroad is analyzing this project where historically fuel distribution has been through pipelines or motor transportation, however, this new scheme would mean lower costs and an improvement in the current supply chain.
Humberto Vargas, vice president of the railway in Mexico, explains in an interview with T21 that there is currently no infrastructure dedicated to the supply of biofuel, and that is where the company seeks to be the pioneer and move a large quantity of this product.
“The railway is quite sustainable with the environment, these are the benefits and advantages of the network to move the SAF. We are beginning to develop the initiative with some producers, having conversations about the access they can have to UP, where they can locate their production plants. It is a very nascent market, but the conversations we have are more than anything about them being able to access the network that we have and from there they can set up their plant installation in a convenient location that allows them to have an efficient supply chain and that it is connected to the airports where they have a commitment to use it,” he says.
More than 35 billion gallons of SAF will be produced in the United States in the next three decades alone , as part of a government program, called the Sustainable Aviation Fuel Grand Challenge , that is designed to help airlines decarbonize.
It is worth remembering that through the International Civil Aviation Organization (ICAO) governments have committed to reducing, through the use of SAF, carbon emissions from international aviation by 5% in 2030. To achieve this goal, around 27% of all renewable fuel production capacity planned in 2030 should be of this type.
Vargas assures that the railway, in cases where it is an alternative that meets the needs of SAF producers and consumers, will develop options for an efficient supply chain.
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