Boeing Sees Brazil As Top Performer For Sustainable Aviation Fuel Production: Report

Boeing Company BA reportedly said that Brazil has the prospect of becoming an essential international player in production of sustainable aviation fuel, or SAF, made from renewable resources such as vegetable oils or waste.

Brazil is the global leader in biofuels such as ethanol, made from sugarcane or corn, and soy oil-derived biodiesel, Reuters reported.

"Brazil has the technical capacity, qualified workforce and raw material to post the concrete results and impacts needed for us to solve together this global challenge of how to decarbonize aviation," Boeing's Latin America and the Caribbean head, Landon Loomis, told a forum hosted by the company in Sao Paulo, as noted by Reuters. "Boeing already is one of the world's largest buyers of sustainable aviation fuel," he said.

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The nation has the potential to bolster the aviation sector's ambitious goal of reaching net-zero carbon emissions by 2050, the report added.

A target has been agreed upon by airlines within the International Air Transport Association (IATA) to largely depend on SAF for operations, the report noted. However, ensuring sufficient SAF supply is the industry's most significant challenge in its push for net-zero emissions amid heightened costs and lagging production growth.

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Price Action: BA shares are trading higher by 0.45% to $238.93 in the premarket on the last check Thursday.