Alkagesta Highlights Infrastructure Needs at IATA Forum as European SAF Transition Faces Bottlenecks

European aviation fuel sourcing and delivery are undergoing structural changes driven by accelerating mandates and logistics challenges, according to reporting by ePlane AI on the International Air Transport Association's Aviation Energy Forum held in May 2026. Convening airlines, refiners, commodity traders, storage operators, and policymakers, the three-day industry gathering focused on the operational realities of transitioning to sustainable aviation fuel across the continent. Malta-based commodity trading and energy logistics group Alkagesta participated in the event, underscoring its growing presence in European jet fuel distribution.

Regulatory pressure is increasing under the European Union's ReFuelEU Aviation framework, which imposes binding, step-by-step sustainable aviation fuel blending mandates through 2050. However, forum delegates noted that physical logistics continue to lag behind legislative ambitions. SAF production remains concentrated in a small number of processing facilities, while transport, storage, cross-border distribution, and blending networks face immediate capacity constraints. These bottlenecks mirror findings from a joint report by Japan Airlines and All Nippon Airways cited at the forum, which highlighted difficulties in meeting targets based on current supply availability and spurred calls for increased regulatory flexibility.

Beyond renewable fuels, conventional jet fuel markets across Europe are contending with heightened volatility. Geopolitical tension, shifting refinery margins, and tightening emissions targets are affecting traditional fuel availability and pricing structures. In response to fragmented logistics, several European carriers are advocating for adjustments to ReFuelEU timelines to better align binding obligations with actual physical supply capabilities and midstream infrastructure readiness.

Industry experts at the forum emphasized that managing the energy transition requires direct investment across the supply chain, including physical blending facilities, certified supply agreements, and strategic pipeline connections. Alkagesta has expanded its aviation fuel operations through supply access linked to NATO's Central European Pipeline System, which supplies major airports across Germany and Belgium, as well as attaining ISCC CORSIA certification to trade and deliver CORSIA-eligible sustainable aviation fuel under International Civil Aviation Organization standards.

Reflecting on market conditions, Alkagesta Chief Executive Officer Orkhan Rustamov stated during the forum that fuel procurement has shifted from a pure focus on price and volume toward supply continuity and certified infrastructure. Rustamov noted that for decades fuel procurement was primarily a question of price and volume, but today energy security and the ability to guarantee supply continuity through certified logistics infrastructure under evolving regulations have become equally critical. He added that the transition to sustainable aviation fuel cannot succeed on policy ambition alone and requires coordinated investment in storage, blending capacity, pipeline access, and certification systems.