XCF Global: Middle East conflict exposes America’s aviation-fuel vulnerability

Sustainable aviation fuel (SAF) producer XCF Global issued a statement March 23 on the ongoing disruption to global aviation-fuel markets caused by the Middle East conflict.

As jet fuel and SAF prices surge to historic levels, XCF Global said it is sharing its perspective on what the current crisis reveals about the structural vulnerabilities of petroleum-dependent aviation-fuel supply chains and the role domestic SAF can play in addressing them.

According to S&P Global Platts data, SAF prices in California reached an all-time high of $8.85 per gallon in the week ended March 4, a surge of more than $1.32 per gallon in a single week.

Spot jet-fuel prices on the U.S. West Coast increased $1.26 per gallon in early March, which are levels XCF Global said have not seen since 2022.

The disruption of tanker traffic through the Strait of Hormuz, through which approximately 20 million barrels per day of crude and refined product normally flow, has driven distillate prices sharply higher across major global hubs.

XCF pointed out that its SAF production facility in Reno, Nevada, which can produce 38 million gallons per year, utilizes domestic waste-based feedstock.

The company noted these feedstocks are not impacted by the Middle Eastern crude supply.

“Our focus remains on delivering high-quality SAF to our partners, maintaining operational continuity, and supporting the aviation sector as markets stabilize,” said CEO Chris Cooper. “America’s aviation sector remains deeply tethered to a global oil market that is inherently unstable. The feedstock, the technology and the workforce to change that exist right here at home. Domestic waste-based SAF is not a future solution. We believe it can be made available now, that it can be scalable, and that it can be produced entirely from American materials. We believe the current crisis is bringing long-overdue attention to what domestic SAF producers have understood for years—a fuel whose supply chain begins and ends in the United States is a fundamentally different kind of energy security while mitigating climate impact.”

XCF Global said it believes that energy security and lowering emissions from aviation are not mutually exclusive.

The events of recent weeks have brought that principle into focus for the aviation sector.

As the market works through this period of volatility, XCF Global said it remains committed to expanding its domestic production.