New report highlights Methanol-to-Jet as key to scaling Sustainable Aviation Fuel

MtJ positioned to help accelerate SAF production with lower costs and standard approval expected by 2026-27

Jan. 28, 2026 at 6:15pm

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A new report from the Methanol Institute indicates that Methanol-to-Jet (MtJ) could become a major contributor to sustainable aviation fuel (SAF) production. MtJ is seen as a pathway to scale SAF faster and at lower cost, with standard approval expected by 2026-27 and nearly 2 Mt of capacity already in development globally.

Why it matters

As global jet fuel demand is expected to rise 50% by 2050, the aviation industry faces a widening gap between climate targets and the availability of affordable low-carbon fuels. The report suggests MtJ can help bridge this gap by combining strong emissions performance with scale and cost advantages, leveraging the existing global methanol value chain.

The details

The report provides a comprehensive overview of MtJ, its potential, needed policy incentives, and assessment of opportunities and challenges. Key findings include that MtJ produced from renewable methanol can reduce lifecycle greenhouse gas emissions by 70-90% compared to conventional jet fuel, and that MtJ is among the most cost-competitive SAF pathways, potentially approaching cost parity with fossil jet fuel by 2040 with supportive policies. The report also notes that MtJ projects under development represent around 1.8 million tonnes per year of future SAF capacity, with over 60 Mt of announced capacity across e-methanol, biomethanol, and low-carbon methanol by 2030.

  • The report was released on January 22, 2026.
  • Standard approval for MtJ is expected by 2026-27.
  • Global jet fuel demand is projected to rise 50% by 2050.

The players

Methanol Institute

The global trade association for the methanol industry, representing the world's leading producers, distributors, technology companies, and end users.

Alexander Döll

CEO of the Methanol Institute.

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What they’re saying

“The challenge for aviation is no longer proving that SAF works. It's producing enough of it, fast enough.”

— Alexander Döll, CEO, Methanol Institute (EINPresswire.com)

“Methanol-to-Jet offers a realistic pathway to scale because it connects aviation to an existing industrial system that is already global, flexible, and growing. Policy decisions taken in the next few years will determine which SAF pathways reach scale. Methanol-to-Jet can move forward now, provided that market signals are clear.”

— Alexander Döll, CEO, Methanol Institute (EINPresswire.com)

What’s next

The report indicates that supportive policies, such as tax credits, SAF blending mandates, and global programs like CORSIA, are essential to provide the necessary signals for investor confidence in MtJ projects.

The takeaway

MtJ emerges as a promising pathway to scale sustainable aviation fuel production and help the aviation industry meet its long-term climate targets, provided that policymakers act quickly to put the right incentives and support mechanisms in place.