Vietnamese low-cost carrier Vietjet Air has partnered with Dubai-based SAF One, a sustainable aviation fuel production start-up, to collaborate on the development of SAF in Vietnam. In the presence of Vietnam’s Prime Minister Pham Minh Chinh, a Memorandum of Understanding (MoU) was signed during COP28 in Dubai, to facilitate collaboration between the airline and SAF One to develop, supply and deploy SAF in the south-east Asian nation. SAF One was jointly established in May this year by aircraft lessor Novus Aviation Capital and Abu Dhabi-based Sencirc Holding, an investment company focused on assets in the circular economy. The Vietjet SAF partnership coincided with the appointment of former Fulcrum BioEnergy and Cathay Pacific Group executive Jeff Ovens as Chief Operating Officer of SAF One, effective from January 2024, and a growing general focus on SAF procurement and supply across the Asia-Pacific region.

Based on airline seats scheduled for December 2023, aviation data group OAG ranks Vietnam as the third biggest market in South-East Asia after Indonesia and Thailand. It also ranks the Hanoi – Ho Ch Minh City route as the busiest domestic sector in South-East Asia, with Ho Chi Minh the sixth busiest airport based on total seats scheduled and Hanoi ranked seventh.

While details of the Vietnam SAF plans were not disclosed, SAF One is aiming to become a global supplier of the alternative fuels. “Our collaboration with Vietjet through SAF One to develop, deliver and supply technology agnostic SAF solutions in Vietnam is a testament to our dedication to provide global solutions to the industry,” said Hani Kuzbari, Director at SAF One and co-CEO of Novus Aviation Capital, of which Vietjet is a customer. Parallel with the SAF collaboration, UAE-based Novus also committed to explore with the airline the co-establishment of an aircraft financing and leasing business.

Hanoi-based Vietjet operates more than 200 narrowbody and widebody Airbus aircraft on over 150 routes across the Asia-Pacific region, with another 15 Airbus and Boeing jets to be funded and delivered from next year through the Novus partnership. “The use of sustainable aviation fuel is a crucial step in the sustainable development of the aviation industry,” said the airline’s CEO Dinh Viet Phuong, “and Vietjet is proud to be at the forefront of airlines being committed to contributing to this collective effort.”

Sencirc Holding Limited, which has partnered with Novus Aviation Capital  in SAF One, is part of the Abu Dhabi Global Market (ADGM), which includes sustainable capital raising and finance. Sencirc’s activities include investments in renewable fuels and feedstocks from repurposed waste. 

Launching SAF One earlier this year, Sencirc’s founder, Deepak Munganahalli, said: “As a company focused on the circular economy, we recognise the importance of supporting sustainable practices across all industries. The aviation industry is pushing to reduce its carbon footprint and SAF One has been positioned to drive change in this area.” SAF One has ambitions to be “a global leading platform that delivers SAF solutions to the aviation industry,” he said.

Sencirc said energy security and energy transition would both be essential considerations “as we reduce the reliance on oil and gas.”

To meet the aviation industry target of 10% SAF usage by 2030, continued Sencirc, SAF production would need to accelerate to 10 billion gallons (37.8 billion litres) per year, more than 60 times IATA’s estimate of 158.5 million gallons (600 million litres) of SAF produced this year.

Coinciding with its initiatives in Vietnam, SAF One has announced the appointment of renewable jet fuels expert Jeff Ovens as Chief Operating Officer, commencing in January 2024. He was previously Managing Director UK, Europe and Middle East for waste-to-jet fuel company Fulcrum BioEnergy for almost seven years, and prior to that spent nearly 12 years, including five years as Head of Renewable Jet Fuel, at the Cathay Pacific Group, which he joined from engine manufacturer Rolls-Royce.

“Jeff’s appointment marks a significant milestone in our journey towards a sustainable aviation future,” said Mounir Kuzbari, Co-Founder and Director of SAF One. “His impressive background and expertise will help us accelerate our growth with the objective of delivering pathway-agnostic SAF to the aviation industry.”

Added Ovens: “Sustainable aviation fuel is now widely accepted as a leading solution for the significant reduction of net CO2 emissions from aviation, particularly long haul. I am excited to be part of the company’s journey in becoming a global leader in the production of SAF through investment, development and partnership formations at strategic locations around the world.”

Photo (Airbus): Vietjet A321neo

Tony Harrington

Correspondent

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