Neste Says Expectations for Cleaner Jet Fuel Demand Are Too High

The demand outlook for sustainable jet fuel is too optimistic, partly because voluntary consumption is rising slower than expected, according to Neste Oyj’s new chief executive officer.

Sustainable aviation fuel, which can be made from waste and vegetable oils, is being looked at by airlines — who’ll be subject to government targets in Europe and the UK from 2025 — to cut emissions. But it’s more expensive than conventional jet fuel, prompting carriers including Deutsche Lufthansa AG to introduce a surcharge from next year.

“We need to taper expectations in the short term on sustainable aviation fuel,” said Heikki ...