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From Test Flights to e-Fuels: Decoding Boeing's SAF Initiatives

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Key Takeaways

  • Boeing has led SAF adoption since 2008, from test flights to its ecoDemonstrator program.
  • In 2024, Boeing made its largest annual SAF purchase of 9.4 million gallons.
  • A 2025 Norsk e-Fuel partnership advances large-scale e-SAF production in Europe.

As industries across the board race toward a carbon-neutral era, the global aviation industry, with its aspiration to achieve full decarbonization by 2050, has been driving the demand for sustainable aviation fuel (SAF). Being a prominent leader in this industry, The Boeing Company ((BA - Free Report) ) thus has been playing a crucial role in making SAF a reality.

In particular, commercial aviation, responsible for 2-3% of global CO??? emissions, is facing growing pressure to adopt cleaner fuels. However, although SAF offers up to 80% lifecycle emission reduction without aircraft modifications, its production remains below 1% of global jet fuel demand.

Boeing has spearheaded efforts to bridge this gap for over a decade. In 2008, it conducted the world’s first commercial SAF test flight with Virgin Atlantic and GE Aviation. A decade later, its ecoDemonstrator program performed the first commercial flight using 100% SAF on a 777 Freighter with FedEx.

In 2023, Boeing partnered with NASA and United Airlines to study how SAF affects contrails and non-carbon emissions. The following year, it agreed to purchase 9.4 million gallons of blended SAF — its largest annual commitment to date.

Most recently, in January 2025, Boeing partnered with Norway’s Norsk e-Fuel to develop one of Europe’s first large-scale e-SAF production facilities, accelerating the availability of electro-fuels and supporting deeper decarbonization of aviation.

Looking ahead, Boeing’s commitment includes ensuring that all its new aircraft are 100% SAF-capable by 2030. This, along with its aforementioned initiatives, underscores the jet maker’s critical role in making SAF a cornerstone of aviation’s sustainable future.

Other Stocks to Watch

With SAF being a critical driver of future commercial aviation, apart from Boeing, other aerospace stocks like Airbus ((EADSY - Free Report) ) and Embraer ((ERJ - Free Report) ) are also undertaking significant SAF-related initiatives and thus warrant a look.

Notably, all Airbus aircraft are currently capable of flying on a maximum 50% blend of SAF and conventional fuel. By 2030, all Airbus aircraft and helicopters are projected to be capable of flying with up to 100% SAF. In March 2025, Airbus took a significant step toward scaling the adoption of SAF by testing a new “Book and Claim” approach to boost both supply and demand for SAF worldwide.

On the other hand, Embraer’s E2 family of aircraft is certified to fly with blends of up to 50% SAF and is currently in the process of being fully certified to fly on 100%. ERJ has been using SAF in operations since 2021 and aims to reach at least 25% by 2040. In June 2024, Embraer agreed with Ann Arbor to increase its uptake of SAF at Melbourne Orlando International Airport in Florida to one load per week.

The Zacks Rundown for BA

Shares of Boeing have risen 40.9% in the past year compared with the industry’s growth of 13.8%.

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From a valuation standpoint, BA is currently trading at a forward 12-month sales multiple of 1.86, which is a discount compared to the industry average of 2.25.

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The Zacks Consensus Estimate for BA’s near-term earnings suggests a mixed movement over the past 60 days.

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BA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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