Paramount refinery shutdown stalls a high-profile partnership
The plant at the heart of the story fired up in 2016, turning waste oils and animal fats into what the industry calls sustainable aviation fuel, or SAF. It supplied millions of gallons annually to United Airlines and JetBlue Airways—until production ground to a halt in April when all 35 employees were laid off. World Energy, the Boston-based owner, had billed the Paramount facility as a springboard toward a second, larger site in Houston. Chief Executive Gene Gebolys now says the Los Angeles-area closure is a “reset.” Air Products, once slated to lead a $2 billion expansion, pulled out in February, citing unfavorable commercial conditions. United Airlines has since confirmed that it ended its SAF purchase agreement with World Energy “a few years ago.” In a separate statement, JetBlue called World Energy “a valued partner” and said cooperation on future volumes will continue.
Why this matters for eco-minded travelers
Aviation accounts for 2.5 percent of global greenhouse-gas emissions, and traffic is projected to more than double by 2050. The International Air Transport Association (IATA) wants carriers to hit net-zero emissions by mid-century, a target that requires 118 billion gallons of SAF every year—more than 300 times today’s worldwide output. For consumers, the Paramount shutdown removes one of the few verifiable sources of green jet fuel in North America. It also highlights the gap between headline-grabbing airline pledges and on-the-ground production capacity:
- SAF is forecast to cover only 0.7 percent of global jet-fuel demand this year, up from 0.3 percent in 2024, according to IATA.
- Air passenger demand, by contrast, is expected to rise 6 percent during the same period.
- A Reuters review found airlines have announced 165 SAF projects in the past 12 years, but only 36 have delivered any fuel. Another 23 have been abandoned, 27 delayed or placed on indefinite hold, and 31 have yet to produce a single gallon.
- If every project still on the drawing board reached full capacity, worldwide supply would expand by 12 billion gallons—barely 10 percent of what is needed for the 2050 goal.
The Cost Conundrum and European Regulations
Currently, sustainable aviation fuel (SAF) produced through the hydroprocessed esters and fatty acids (HEFA) method—used by Paramount—costs three to five times more than conventional jet fuel. Airlines argue that major oil companies are hesitant to increase production at these prices, while some refiners claim that demand is too weak for significant investment. As a result, travelers may bear the financial burden; if SAF remains expensive, airlines could implement ticket surcharges or raise base fares. New European Union regulations mandate airlines to blend at least 2 percent SAF into every flight starting in 2025, increasing to 6 percent by 2030 and 70 percent by 2050. The International Air Transport Association (IATA) estimates that the 2025 mandate alone will add $2.9 billion to airlines' annual fuel and compliance costs, likely impacting transatlantic fares.
Challenges in the Global Pipeline
Beyond Paramount, several high-profile projects illustrate the challenges in the sector. SGP BioEnergy, based in New York, initially planned to open the world's largest SAF complex in Panama this year, but construction has been postponed to 2027 due to lukewarm airline support and the possibility of pivoting to renewable diesel for trucks and ships. Meanwhile, British start-up Velocys has spent 15 years trying to commercialize Fischer-Tropsch technology, which converts municipal waste and forestry byproducts into jet fuel. Although pilot quantities have been produced, none of its proposed plants—in Oklahoma, Mississippi, or Immingham, England—have been completed. The English site has received £27 million in government grants since 2022, along with an additional £3 million in July, yet the location remains an empty field today.
What can travelers expect in the near term?
Because HEFA relies on limited feedstocks—used cooking oil and animal fats—the aviation industry agrees it will not meet long-term demand. Yet most near-term projects still hinge on that process. Unless alternative pathways mature quickly, airlines may struggle to obtain enough fuel to satisfy upcoming mandates or their own public climate targets.
Tips for travelers
- Ask before you book. Some carriers let you purchase SAF credits or contribute to offset schemes. Verify whether the program funds physical fuel production or merely accounting certificates.
- Check the route. Airports in California, the Netherlands, Norway, and Sweden currently see the most consistent SAF deliveries, albeit in small volumes. Choosing flights that pass through these hubs marginally increases the odds that a portion of your ticket goes toward greener fuel.
- Mind the aircraft type. Newer planes such as the Airbus A320neo, A220, and Boeing 787 burn up to 25 percent less fuel than previous generations, providing an immediate emissions benefit independent of SAF availability.
- Consider nonstop flights. Takeoffs are fuel-intensive; shaving a connection often lowers total emissions even if the nonstop ticket costs slightly more.
- Pack light. Every pound in the overhead bin demands extra fuel. One carry-on instead of two makes a difference on short-haul routes.
The closure of the Paramount refinery underscores a harsh reality: the sustainable jet-fuel revolution is moving far slower than travel demand or airline marketing would suggest. As travelers, our choices—selecting efficient aircraft, supporting credible SAF programs, and advocating for transparent progress—remain pivotal. But for the moment, the greenest decision may still be the oldest one: fly less or make every trip count.
