A high-profile European coalition has joined forces to urgently advance the production of e-SAF – sustainable aviation fuels produced by combining renewable electricity, water and captured carbon dioxide. Project SkyPower brings together 13 CEOs and more than 50 companies including airlines, airports, energy companies and financiers to push for government policies that enable production of e-SAF from 2030. A report by the new group says Europe has a strong opportunity to capture a big share of the global e-SAF market, which it estimates could be worth €250 billion ($270bn) by 2050 and create up to 90,000 direct jobs. But it argues that to do so will require investments between €15 billion and €25 billion by 2030, encouraged by supportive government policies. Globally, says the report, Europe has 26 of the 31 large-scale e-SAF projects currently proposed. “But while 70% of the global e-SAF project pipeline is located in Europe,” it adds, “no plant has yet reached final investment decision (FID).”

Foundation members of Project SkyPower include Air France-KLM, easyJet, Arcadia eFuels, Copenhagen Airports, private jet service Victor, SAF providers Velocys and SkyNRG, and finance and technology providers including ING, Rockton, Natixis, KGAL and Topsoe. It is co-chaired by Dutch industrialist and former Unilever CEO Paul Polman, and the CEOs of KLM, Marjan Rintel, and Arcadia eFuels, Amy Hebert.

“Project SkyPower’s mission is to pave the way for the first large-scale e-SAF plants in Europe to reach final investment decision by 2025,” says the report, “in order to drive progress towards key regulatory targets, ReFuelEU and the UK mandate.”

To reach those targets and achieve net zero emissions by 2050, the group argues that production of e-SAF must commence by 2030 and continue to develop, initially with strong government support.

Project SkyPower has been convened to promote e-SAF as the most effective and eventually most affordable pathway to low-carbon flight, and to urge governments to introduce policies that reduce investment risk in infrastructure development and fuel production before SAF mandates take effect.  

While e-SAF technology is scaled, the group wants government funding from existing taxes on the aviation industry to bridge the premium between e-SAF and fossil fuels, helping to secure long-term demand and mitigating first-of-a-kind project risk to initially unlock commercial capital.

The Project SkyPower report says e-SAF could deliver lifecycle emissions up to 90% lower than conventional aviation fuels with few feedstock constraints compared to other SAF types.

“Bio-SAF, or SAF produced from biogenic material, offers an affordable and commercially available decarbonisation solution for aviation both in the near and long term,” says the report.

“However, due to the globally limited availability of sustainable biomass feedstock and competing demands from other sectors, bio-SAF alone will not be able to decarbonise the aviation industry. It will need to be complemented by large volumes of e-SAF.”

As well, says the report, e-SAF production is held back by a lack of renewable energy generating capacity, and the need to accelerate development of Direct Air Capture technology for trapping atmospheric CO2.  

Project SkyPower warns that European aviation has less than two years to achieve final investment decisions for e-SAF plants if the fuel is to be available in time to comply with EU and UK SAF blending mandates.

It estimates capital investment of €15 billion to €25 billion ($16-27bn) will be needed by 2030, with a further €3 billion to €5 billion annually to reach the scale needed to meet escalating blending mandates.

“E-SAF needs to reach commercial scale by 2030 and hit market tipping points in the 2030s to reach the scale necessary to enable a lower-emissions aviation industry by 2050,” claims the report.

“It typically takes five years for an e-SAF project between reaching final investment decision and being operational. Therefore, FIDs for e-SAF projects are needed by 2025 to start production by 2030.”

The report says economic modelling performed for Project SkyPower indicates that without government subsidies, the production cost alone of e-SAF in Europe could be five to eight times greater than that of conventional jet fuel, including Emission Trading Scheme costs.

KLM’s CEO, Marjan Rintel, one of the three co-chairs of Project SkyPower, and the Air France-KLM representative in the group, said her company had studied multiple decarbonisation technologies “of which synthetic fuel (e-SAF) is expected to be the most promising in terms of feedstock availability and cost perspective.”

She added: “Project SkyPower is modelling the conditions required to overcome the barriers to scaling e-SAF. By working together, we now have a shared economic model for e-SAF and an action plan to be implemented by the wider aviation ecosystem.”

Another of the group’s co-chairs, Arcadia’s Amy Hebert said: “Successful delivery of Project SkyPower’s action plan will fundamentally change the e-SAF landscape, establishing the necessary conditions to take final investment decisions and accelerate this critical technology towards commercial operation by 2030.” Her company is aiming to activate a new e-SAF plant at Vordingborg, on the Danish island of Zealand, in 2026. The third of Project SkyPower’s co-chairs, Paul Polman, said: “Partnering with governments, financial institutions and civil society is imperative to scale e-SAF to a tipping point where it not only progresses on urgent emissions reduction but also secures millions of jobs and future-proofs the aviation industry.”

Photo: A flight by KLM from Amsterdam to Madrid in 2021 used 500 litres of e-SAF produced by Shell

Tony Harrington

Correspondent

• Linkedin

The SkyTeam airline alliance has just completed its first Sustainable Flight Challenge, in which member airlines demonstrated or tested initiatives in the air and on the ground to help reduce their carbon emissions, with the results to be shared across the industry. The challenge, which required participants to maximise decarbonisation measures on specific flights between May 1 and 14, attracted 16 of the alliance’s 18 members, and delivered outcomes including services part-powered by large volumes of sustainable aviation fuel and weight-saving operational measures such as the use of new, lightweight aircraft tyres. The concept of the Sustainable Flight Challenge was developed by The Bold Moves, a group of employees within SkyTeam member airline KLM, who were inspired by a 1934 air race between London and Melbourne, designed to demonstrate the possibilities of long-range commercial flights. SkyTeam adopted the KLM idea and expanded it to encourage all its member airlines and partners to participate, reports Tony Harrington. Meanwhile, SkyTeam member Saudia has undertaken what it claims is the world’s longest net positive flight through a carbon offsetting partnership with CarbonClick and aviation consultancy SimpliFlying.

“The climate crisis is the greatest challenge facing our industry, and there’s no time to lose,” commented SkyTeam on the Sustainable Flight initiative. “As airlines, we need to reshape the future of air travel for generations to come. Together, we are committed to further reducing our carbon footprint by finding new ways to cut emissions, make our fleets more efficient and better care for the world we connect. We’re challenging ourselves to innovate, reaching for new heights to find as-yet undiscovered solutions that we can put into practice across our industry.”

As originator of the Sustainable Flight Challenge, KLM operated two flights from Amsterdam as part of the project, one a Boeing 787-10 widebody service to Edmonton, Canada, the other an Embraer E190 regional jet to Porto, Portugal, each incorporating more than 50 efficiency measures, including a 39% blend of sustainable aviation fuel. Weight-saving initiatives included the use of artificial intelligence modelling to predict the amount of water needed for each flight, lightweight cargo pallets and nets, and optimised aircraft loading to ensure the best centre of gravity, to improve flight aerodynamics and reduce fuel burn by 1.5-2%. Pilots also collaborated with air traffic controllers to identify the most efficient air routes, while on the ground, business class passengers were asked to pre-select meals in order to minimise uplift of catering which would not be used, while transport companies delivering freight were asked to use vehicles powered by electricity or biodiesel fuel.

Air France also operated two flights part-powered by SAF, and performed with new, more fuel-efficient jets – an Airbus A350 from Paris to Montreal, using a 16% SAF blend produced by TotalEnergies, and an Airbus A220 from Paris to Lisbon with a 30% SAF mix, both well above the mandatory 1% blend required on all flights from France, and aligned with the airline’s target of 30% less CO2 emissions per passenger kilometre by 2030, compared to 2019. The airline said both flights were also supported by initiatives including single-engine taxiing and optimised routes, each achieving CO2 reductions of close to 45% compared to routine services. It foreshadowed greater use of AI to optimise flight paths, and use of autonomous tractors to help decarbonise baggage transport at airports.

In the US, Delta Air Lines used a Boeing 737-900ER – the most fuel-efficient aircraft type in its fleet – to operate a sustainable flight from its Atlanta home base to Salt Lake City. The plane was part-powered by 400 gallons of SAF, provided by Gevo, and the largest volume of sustainable fuel uplifted on a flight from Atlanta. The aircraft was also equipped with new main landing gear tyres which reduced weight by 100 pounds (45kgs), while at both ends of the journey the flight was serviced by 100% electric ground equipment used to transport baggage and fuel. Delta has pledged that 25% of its ground service vehicle fleet will be electrically powered by the end of 2022, up from 20% now, and rising to 50% by the end of 2025. Other features of its sustainable flight included recyclable packaging for beverages and no disposable plastic.

Another SkyTeam member, Saudi Arabian Airlines (Saudia), as part of the Sustainable Flight Challenge, has claimed the world’s longest net positive flight through a carbon offsetting partnership with New Zealand-based CarbonClick and aviation consultancy SimpliFlying. The airline said 346 tonnes of carbon emissions were offset from a six-hour, Boeing 787-9 flight between Jeddah and Madrid. The flight also incorporated the first in-flight ‘sustainability lab’, in which passengers contributed suggestions on how to reduce the environmental impact of flying.  To offset the flight’s emissions, CarbonClick will apply the airline’s contributions to the generation of wind-powered electricity in India, enabling wind turbines to be powered for 26 days, and delivering sustainable electricity to communities in Bhuj, in the western state of Gujurat.

SkyTeam said the pressures presented by Covid-19 meant that not all of the alliance’s member airlines could participate in the inaugural Sustainable Flight Challenge but expressed confidence that more would join in future years, with outcomes shared not only across the alliance, but further afield. “The industry as a whole will benefit from the challenge,” said SkyTeam. “That’s because everything we learn we will share open source. It’s our commitment to finding new ways to reduce our industry’s footprint and bring the future of sustainable air travel forward. What’s more, we hope to broaden participation in years to come.”

Photo: KLM

KLM Royal Dutch Airlines is now adding a 0.5% proportion of sustainable aviation fuel to all flights it operates from its home base at Amsterdam’s Schiphol Airport, one of Europe’s biggest aviation hubs. To fund the new SAF programme, a surcharge of between one and 12 euros, depending on class and distance travelled, will be added automatically to every fare on KLM flights from Schiphol, reports Tony Harrington. At the same time, French partner Air France and low-cost subsidiary Transavia will also implement the surcharge on flights departing from France and the Netherlands. France has introduced a mandate that took effect on January 1 requiring all airlines refuelling in the country to use at least 1% of SAF in their fuel mix, a proportion set to increase to 2% in 2025 and 5% in 2030. There is currently no such requirement in the Netherlands, although the EU is likely to introduce a blending mandate in 2025.

KLM said its SAF initiative was voluntary and aligned with its pledge last year to incorporate 10% SAF on all of its flights by 2030, as part of a collective commitment by 60 members of the global Clean Skies for Tomorrow Coalition.

The airline will also offer passengers the option to purchase additional sustainable fuel, the proceeds of which will support further investment in SAF produced from used cooking oil, forestry residues and sustainable synthetic sources. Air France is from today also to start offering its passengers the opportunity to make a further contribution towards the purchase of SAF, pledging that every euro donated would be invested in SAF. Air France said SAF was between four and eight times more expensive than conventional jet fuel, although it was confident the cost would fall as European SAF production began.

“The face of travel is set to change in the future, and SAF will play an essential role in this regard,” said KLM. “The CO2 emissions from SAF that KLM currently purchases are at least 75% lower than those of fossil kerosene. That is why, in the short term, SAF is the most important means of drastically reducing CO2 emissions, thus contributing to making aviation more sustainable.”

KLM has long been a proponent and pioneer of low emission fuels. In 2011, it operated the first commercial flight using blended biofuel, and last year became the first to use synthetic kerosene to part-power a commercial flight, operated by one of its Boeing 737s from Amsterdam to Madrid. In addition to large SAF purchase commitments and as a founding shareholder in Netherlands-based global SAF provider SkyNRG, the airline also participates in a range of SAF partnerships and has developed sustainable fuel purchasing options for corporate and cargo customers.

The airline said it had signed agreements with multiple partners and SAF suppliers. However, it added: “The costs for the sustainable fuel variant are at least four times higher and production is lagging behind. By increasing demand, KLM hopes to further develop the market for SAF so that supply is scaled up and sustainable fuel ultimately becomes cheaper.

“We realise that the 0.5% standard admixture on passenger tickets is a very small step, but an important one in the right direction and we hope other airlines will follow soon. We will have to work with all parties around us and come up with rock-solid solutions and innovations to further open up the market for SAF.”  

A market outlook paper produced last year by SkyNRG highlighted the shortage of SAF production capability, estimating that by 2050, 300 new plants, each producing about 100,000 tonnes of sustainable fuel per year, would be needed just to fulfil European blending mandates. The company said only 15 new plants were proposed in Europe for operation by 2027, which meant more than 10 new facilities were needed each year between 2027 and 2050.

The Air Transport Action Group went even further in its Waypoint 2050 report, which estimated that globally, airlines would need 330-445 million tonnes of SAF, or up to 511 billion litres, if they were to achieve their 2050 net emissions targets and said such a steep ambition would require the construction of between 5,000 and 7,000 new refineries.

KLM said it had already built a “relatively substantial” 0.18% share of the global SAF market but noted this was still less than 1% of its total fuel consumption. It said the 0.5% SAF blend on flights from Amsterdam would be in addition to the volumes funded by partners in the KLM Corporate SAF Programme and the Air France-KLM-Martinair Cargo SAF Programme. As well, the ability for passengers to purchase additional volumes of SAF would be added through KLM’s CO2ZERO programme, through which it is already possible to contribute to a verified reforestation project.   

In addition to its SAF initiatives, KLM has invested heavily in new, lower-emission aircraft, having recently introduced the first of a new fleet of Embraer E195-E2 regional jets, while KLM Group has just committed to an order for 100 Airbus A320 and A321 neo aircraft for use by KLM, Transavia Netherlands and Transavia France.  Deliveries will commence late in 2023, replacing Boeing 737NG aircraft. KLM has also reshaped its long-haul fleet, phasing out Boeing 747s in recent years and introducing Boeing 787 Dreamliners. 

Photo: KLM

Eight European transport ministers have called for a harmonised, long-term strategy to decarbonising the air transport sector to include ramping up the production and supply of sustainable aviation fuels (SAF) through an EU-wide blending mandate. Hosting a high-level virtual conference, the Dutch Minister of Infrastructure and Water Management, Cora van Nieuwenhuizen, said there was a clear goal for aviation to achieve zero-carbon emissions, and the innovation of SAF, in particular synthetic kerosene, would play a crucial role. She said the Dutch ambition was fuel from departing flights would be made up of 14% SAF by 2030 and used the event to showcase a recent flight by KLM from Amsterdam that used 500 litres of synthetic jet fuel produced by Shell from CO2, water and renewable energy, an industry first. EU Transport Commissioner Adina Vălean said synthetic fuels, including hydrogen, would become one of the most important routes to the sector’s decarbonisation and the forthcoming launch of the RefuelEU Aviation initiative would establish a regulatory framework at the EU level that sent a strong policy signal to producers and investors.

European Executive Vice President Frans Timmermans, who has responsibility for the European Green Deal and Climate Action, said aviation presented a particular challenge due a huge increase in carbon emissions over the past decade, which needed to be tackled.

“Now with the pandemic, aviation has been particularly hard hit and a lot of public money has been put into keeping the sector alive,” he told the conference. “I think that was a good choice because the sector is going to be crucial in our recovery and the future structure of our economy – but it has to be a sector with a heavily reduced carbon footprint.

“We will need to look at what will be fuelling future aircraft and that is of extreme importance. I know the industry is on board with this and most of our own [EU] governments are too. With the election of Joe Biden in the US, the international environment is also quickly changing and there is no doubt in my mind they will be looking for a rapid reduction in carbon emissions as well. The traditional argument that we cannot touch aviation because it is an international sector becomes moot if we all start moving in the same direction.”

He called for European investment support of new technologies that would enable lower-cost production of sustainable fuels, including synthetic kerosene and clean hydrogen.

“What instruments do we have to influence this?” he said. “From my perspective, the EU ETS is the best system. It puts a price on carbon and allows us to generate revenue that can be used to be invested to create sustainable transport. Talking to my counterparts in America and China, forms of ETS are going to be cornerstones of their approach to decarbonising their economies as well. At the moment, it’s a piecemeal approach but if we do it at scale then we create a level playing field and then the risk of putting the European airline industry at a disadvantage diminishes.

“As well as carbon pricing and RefuelEU Aviation, we will have to look at how we integrate other transport systems into a sustainable solution. It is important to have a fundamental conversation about the future of this industry. It is not just about changing the energy used for air transportation but it’s also about the future role of the sector. Funding the recovery by putting the burden on our children and grandchildren will only work if we can show a better and more sustainable economy. There shouldn’t though be an antagonism between reaching climate neutrality and having a vibrant airline industry that responds to the transportation needs of our citizens and economy.”

The unprecedented Covid crisis had brought European air traffic back to 1995 levels, said Vălean, who expects recovery to fully return after five years and reach 14.4 million flights per year by 2035.

“However, it doesn’t make sense to go from catastrophic losses to an increased environmental impact. Along with an increase in flights, we have to see a decrease in emissions. It is not an easy task but neither is it an impossible one because we now have the technologies, we have a plan and for the first time, we have the commitment of the entire aviation industry to change. Ten years ago, even five years ago, it would have been impossible to sit all the actors at the same table and to see them sharing the same goals and vision as we are seeing today.”

She said sustainable fuels had a major role to play but the estimated share of SAF in the EU today was only around 0.05% of total jet fuel consumption.

“We need to scale up production capacity and make them widely available on the market,” she said. “This will require both cooperation and a sustainable policy framework, and, of course, an acceptable business case. In terms of cooperation, we plan to involve every interested party – airlines, producers, researchers, airports, public authorities, civil society and others – to establish a renewable and low-carbon value alliance. A chain is only as strong as its weakest link. We need to know with precision, which are our weakest links and create the right conditions to strengthen the entire chain.”

Vălean said a consequence of the RefuelEU Aviation initiative would be to attract major investment in European SAF production capacity that would lead to increasing uptake.

“We will also make sure our proposal maintains and guarantees a strong level playing field for industry in the EU,” she added. “The transition to sustainable fuels must be driven and endorsed collectively by the aviation industry community, and costs for clean fuels must be shared as fairly as possible.

“As aviation is global by nature, we will accelerate a discussion in global forums like ICAO and we must continue to convince our third country aviation partners that sustainable alternative fuels are the right choice to ensure that the growing aviation sector has a sustainable future.”

Andreas Scheuer, Germany’s transport minister, agreed measures needed to be coordinated at an international level and that the current crisis offered chances for the sustainable development of aviation. As air transport would continue to rely on liquid fuels for the foreseeable future, the use of SAF was key to contributing to environmental and climate protection in aviation, he said.

“From the different types of sustainable fuels, Germany is especially focusing on synthetic e-fuels produced from renewable electricity, CO2 and water, known as power-to-liquid (PtL) kerosene,” he said. “In our view, PtL has the highest potential to contribute the sustainable development of aviation and our climate goals.”

Despite the promise of PtL fuels, he conceded, there was no business case as yet due to high production costs, a lack of supply and demand, and current limitations of renewable electricity supplies. To support market development, he said Germany had set up a funding regime that would provide €1.5 billion ($1.8bn) over the next four years, with a special allocation for aviation PtL fuels. This would be complemented, subject to the recovery of the aviation sector from the crisis, by a national blending quota of 0.5% PtL starting from 2026, increasing up to 2% by 2030, based on sales of jet kerosene in Germany.

“However, market distortion has to be considered and addressed. We therefore advocate for a common European and international approach regarding regulatory measures and quotas,” he said. “In this context, we support RefuelEU Aviation to boost the supply and demand for SAF and PtL. This regulation, in our view, should include a separate requirement for PtL kerosene.”

He reported the government and industry stakeholders were currently developing a PtL roadmap for aviation, which would be published shortly in German and English.

French transport minister Jean-Baptiste Djebbari said in a keynote address that while synthetic fuels were currently expensive, the economics would improve through innovation and scalability. Sustainable aviation fuels are already available and would increase in the coming years, while hydrogen was expected in 2035, he added.

“We must develop all these technologies and keep in mind the timeframe is different for each of them,” he said. “We need to integrate all certified and available SAF pathways despite their current levels of production maturities. The use of SAF should be an obligation to airlines and increase with progressive phasing and harmonised at the EU level.”

To send a signal to the market, he suggested a European mandatory target of 5% SAF by 2030, with obligations that feedstocks are produced in the EU and came with high standards of sustainability. “We should avoid relying on imports of feedstocks from outside the EU. It’s a matter of improving our energy independence and also the externalities associated with the transport of non-local feedstock.

“In France, we have just published a national roadmap that sets a target of 1% incorporation by 2022, based on an incentive through a tax exemption on jet supplies. We are supporting innovative projects and launched a call for expressions of interest last year. Today, there are around 15 projects, bringing together aircraft companies, airlines, industrials and waste management specialists. The projects are at different stages, some in a pilot phase, some need further studies, but things are going well at the moment and we can see a very good momentum in France.”

Sweden’s Minister of Infrastructure, Tomas Eneroth, said blending mandates should be coordinated as a joint EU initiative but that it was up to individual Member States to decide the measures to use in order to reach a minimum share. It was also important that any EU legislation proposal should support ambitious States that were already moving ahead with SAF initiatives. Sweden, he said, was intending this summer to introduce an obligation based on GHG emission reductions.

“The purpose of opting for a reduction obligation is that compared with a blending obligation, it favours fuels with lower lifecycle emissions,” he said, adding that Sweden would welcome a revision of the EU energy taxation directive to allow for Member States to tax fossil jet fuel used in international aviation.

“In the short term, we are open to bilateral agreements on taxation. I also hope that there will be a broader discussion at ICAO on international regulation. It is of the utmost importance we continue discussions on work on sustainable aviation at the European level. It is time for the EU to take the next step and we are fully committed to making aviation more sustainable, resilient and future-proof.”

Timo Harakka, Minister of Transport for Finland, said the EU had to drive ambitious climate goals at a global level. “The next ICAO Assembly in 2022 will show whether the aviation community is ready for concrete measures. It will no doubt be challenging to agree on a common goal and necessary measures. However, there is no time to postpone the inevitable. Whether the measures are national, EU-wide or global, sustainable aviation fuels are at the very centre of them.

“I’m certain e-fuels will play a major role in decarbonising aviation. We’re not there yet but there are some promising initiatives in Europe, including in Finland. It is very important that as we move to maximum usage of e-fuels in the future, we also maximise the use of the current available measures. With swift and ambitious action, the aviation sector could make a real difference in achieving EU 2030 climate goals and we can drive the change in the global area.”

Latvia’s Minister for Transport, Tālis Linkaits, said there were numerous challenges ahead, including the SAF price gap, and especially for small and distant Member States like Latvia. He also advocated that airlines should not be burdened with SAF quota demands.

“Nevertheless, I would like to express support for the pioneering efforts in this field and with mutual cooperation, we can help each other to initiate the ramp up,” he said.

Eight EU States – France, Germany, Spain, Sweden, Denmark, Finland, Luxembourg and the Netherlands – issued a joint statement during the conference:

“We therefore support the aim of the European Commission to boost the supply and demand for SAF in the EU so as to create favourable conditions in order to ramp up the production and deployment of SAF, based on robust sustainability criteria. The potential of synthetic aviation fuels, in addition to advanced sustainable biofuels, is clear. The challenge is to make use of the current momentum by providing for a clear long-term perspective so as to contribute to a scalable SAF marketplace. A European blending mandate can achieve this.

“So we call upon the European Commission to further stimulate and incentivise the uptake of SAF, including synthetic fuels, through funding programmes under the existing financial framework and we welcome the RefuelEU Aviation initiative as a starting point for further EU coordination so as to ensure an integral and effective long-term agenda on sustainable aviation.”

The 500 litres of synthetic kerosene showcased during the conference was produced by Shell at its research centre in Amsterdam from CO2, water and renewable energy from local sun and wind sources. It was used on a KLM flight between Amsterdam and Madrid.

“This promising innovation will be of great importance in the coming decades to reduce CO2 emissions from aviation,” commented Cora van Nieuwenhuizen. “It is great that in the Netherlands, we were the first to show that this is possible – a big compliment for all involved. I hope that in these turbulent times for aviation, this will inspire people in the sector to continue on this course.”

Photo: Synthetic fuel blend loaded onto KLM flight

Representatives from the European aviation sector and environmental groups, together with a research organisation and a sustainable aviation fuel supplier, have come together to provide recommendations to EU policymakers on sustainability aspects and support for future aviation fuels. Convened by two climate-based philanthropic bodies, the guiding principles drawn up by the 12 participants in the Fuelling Flight Initiative are based on a shared vision that ramping up sustainable aviation fuels in Europe needs to be done in the right manner from the start. Endorsing the initiative include Air France, Deutsche Post DHL, easyJet, KLM, International Airlines Group, Schiphol Group, Transport & Environment, WWF and SkyNRG. The move comes as EU regulators consult on revisions to the Renewable Energy Directive (RED) to bring it in line with the ambitions of the European Green Deal and the net-zero by 2050 goal.

The current directive does not ensure that fuels used in Europe meet the sustainability standards desired by civil society nor of leading airlines, believes Pete Harrison, EU Policy Director of the European Climate Foundation, which, along with ClimateWorks Foundation, convened the initiative.

“Europe must ensure that future policies only promote the most sustainable fuels for reducing the climate impact of aviation, and the EU needs to avoid repeating the mistakes of the past,” he said. “Those in the Fuelling Flight Initiative have now reached agreement on this important topic and we propose shared guidelines on how to minimise environmental impacts. Policymakers should take this into consideration when defining a policy framework that is fair, affordable and meets the highest sustainability standards without compromise.”

He was backed by KLM CEO Pieter Elbers, who said: “With our contribution to the Fuelling Flight Initiative, we support EU policymakers in defining the right framework that meets the highest sustainability standards. At the same time, we advocate affordable pricing of sustainable aviation fuel (SAF) in combination with requirements that are equal for all parties. With that, the road is paved for a faster uplift of SAF, helping us to decrease our impact on the planet and accelerate our ambitions towards sustainable aviation.”

Among the recommendations put forward in a consensus statement published by the initiative are to:

• prioritise e-fuels and fuels made from wastes and residues;
• exclude biofuels produced from dedicated cropland;
• execute case-by-case assessments of local environmental impacts; and to
• support multiple technology pathways.

The statement notes that despite two phases of EU policy support through RED and the Fuel Quality Directive, European investment in advanced biofuels production had so far been subdued and EU biofuel use had been dominated by fuels with high sustainability risks. Future policy support should only go to fuels with high carbon reductions compared to fossil fuels, which would provide a solid foundation for securing future investment in SAF development as well as contributing to broader UN Sustainable Development Goals, it says.

The initiative’s participants call for SAF policy to be informed by bottom-up assessment of feedstock availability in conjunction with a review of existing demands across different transport modes and cautions against high SAF mandates in the near term that could drive unsustainable behaviour, such as high-intensity extraction of residues with existing uses or the diversion of land to meet SAF demand.

“Any potential SAF deployment targets must balance the availability of sustainable feedstocks with the necessary ambition and complementary policy support to drive investment in more challenging advanced fuel pathways,” they recommend.

Over the next few years, waste oils may deliver small volumes of low-carbon SAF but, says the statement, the EU must invest in fuels made from more abundant resources such as agricultural residues, municipal bio-waste and electrofuels (e-fuels). It emphasises the importance of selecting which wastes and residues are sustainably available for SAF production.

“The precise guidelines for sustainable availability will by necessity vary by location and on a feedstock-by-feedstock basis,” it adds. “For example, the guidelines for agricultural residues will be different than those for forestry wastes and municipal solid waste (MSW).”

The participants agree the theoretical availability of fuels of non-biological origin greatly exceeds the potential of fuels made from wastes and residues. These include fuels generated from industrial waste gases, although they say it is important these fuels do not provide a continued business case for fossil fuel use and full lifecycle assessments must be undertaken to ensure the fuel generates real GHG reductions relative to the fossil baseline, including indirect effects.

E-fuels made from captured carbon in conjunction with renewable electricity or concentrated sunlight is expected to be another important source of non-bio SAF in the long term. Again, stresses the statement, policymakers must ensure both the renewable electricity used to produce them and the carbon captured for fuel production are not incentivised by power sector policies or otherwise double-counted towards those policies.

“Therefore, it is critical to ensure that these fuels are produced from additional renewable electricity and their CO2 use, if not captured from the atmosphere, does not provide a continued business case for fossil fuel use.”

The statement envisions a three-phased approach to SAF deployment based on technology readiness and feedstock availability. In the first phase through 2025, waste oils are the likeliest source of low-carbon fuel due to their low carbon intensity and ease of conversion. However, there is competition for such fuels and policymakers may choose not to incentivise their diversion from the road sector towards the aviation sector. Even with diversion, the penetration of waste oils in aviation will be limited but their use would constitute a meaningful first step, argues the statement.

Scaling up SAF deployment in the 2025-2035 timeframe will require utilising more technically challenging feedstocks through the commercialisation of emerging technologies. More abundant sources of sustainable feedstock are expected to come from lignocellulosic residues and wastes such as MSW and agricultural and forestry residues.

To meet long-term decarbonisation targets and deeper deployment rates, the participants say it will require the use of fuels with greater availability than bio-based wastes and residues, with e-fuels offering substantial long-term potential for supplying SAF, as there are fewer constraints to their production volumes. However, acknowledges the statement, the high cost of supplying additional renewable electricity makes this one of the most expensive options for reducing aviation emissions. Despite the initial high costs, policy support for e-fuels over the next decade could help bring down the capital costs for electrolysers and introduce the policy framework that would link transportation energy demand to new, additional renewable electricity from the power sector.

Concluding, the statement recommends the European Commission proposes higher sustainability standards than those currently laid out in the RED, including clear exclusions of unsustainable feedstocks and pathways, such as biofuels from dedicated croplands and palm oil production by-products (PFAD). The revised framework should also incentivise levels of SAF and/or feedstock use that could be met only from domestic EU supplies.

“To meet aviation’s climate targets, it is essential to start scaling SAF production capacity rapidly, in collaboration with all relevant stakeholders including governments and NGOs,” commented Maarten van Dijk, Managing Director of sustainable aviation fuel supplier SkyNRG. “Long-term, stable policy frameworks are key to enable scale-up, and a clear exclusion of unsustainable feedstocks and pathways is, in our opinion, an important part of future policy.”

Added Andrew Murphy, Aviation Director at Transport & Environment: “The aviation fuels policy Europe launches this year will be crucial in determining whether the air travel sector is finally put on a path to sustainability. Europe needs to avoid repeating the mistakes of the past by ending support for crop-based biofuels and instead support new fuels, in particular e-fuels derived from additional renewable electricity. This statement is an important recognition by a wide range of actors of this need.”

The 10 participants in the initiative are Air France, Bauhaus Luftfahrt, Deutsche Post DHL Group, easyJet, International Airlines Group, KLM, Natuur & Milieu, T&E, Réseau Action Climat, Schiphol Group, SkyNRG and WWF. Technical advice was provided by the International Council on Clean Transportation (ICCT).

The European Commission launched a public consultation in November on a revision of the Renewable Energy Directive, which closes on February 9.

Photo: KLM

Air France KLM Martinair Cargo has launched what it claims is the world’s first sustainable aviation fuel (SAF) programme for the airfreight industry that will enable freight forwarders and shippers to participate in reducing aviation CO2 emissions. Based on a ‘book and claim’ system, forwarders and shippers contribute to offsetting emissions from flights through the use of SAF. Customers determine their own level of engagement with the programme and their entire investment is used for sourcing SAF. Lufthansa Cargo has launched a similar initiative in which customers can have the CO2 emissions of their shipments calculated during the booking process, which they can then offset through Lufthansa Group’s Compensaid platform and the funds used to purchase SAF. As a result of a collaboration with DB Schenker, the first flights to be covered by the use of SAF took place in late November on a return Lufthansa Cargo flight between Frankfurt and Shanghai.

With a fleet of six freighter aircraft and 172 long-haul passenger aircraft and hubs at Paris Charles de Gaulle and Amsterdam Schiphol, Air France KLM Martinair Cargo flies around 1.2 million tons of cargo a year. Customers will not only help pioneer the use of SAF in the aviation industry but will also scale up the SAF market by investing in the Cargo SAF Programme, says the group. When contributing, customers receive a third-party audited report, justifying the purchased volume of SAF in relation to traffic and indicating the reduction in CO2 emissions achieved.

“Our commitment to reducing CO2 emissions is one of the cornerstones of our cargo strategy,” said Adriaan den Heijer, EVP of Air France-KLM Cargo and Managing Director of Martinair. “The launch of a SAF programme for airfreight is an important step in our ambitious sustainability roadmap for the coming years. I invite all our customers to join us in creating a more sustainable cargo future.”

KLM already operates the Corporate BioFuel Programme that enables businesses with a corporate contract with the airline to offset the CO2 emissions from business passenger travel using SAF. Partners in the programme pay a surcharge that covers the difference in cost between biofuel and traditional fossil-based kerosene.

Lufthansa’s ‘Miles & More’ passenger customers can now compensate for their CO2 emissions as the app has integrated the Group’s Compensaid compensation platform, which was launched in 2019. Customers can see the CO2 emissions of their flight in the Miles & More app and offset them directly using their airmiles or with a charge in euros. The customer can decide whether to offset through the use by the airline of SAF or through certified reforestation projects of the myclimate foundation. The enabling application is called ‘mindfulflyer’ and was developed jointly by Miles & More and the Lufthansa Innovation Hub. With the mindfulflyer function, participants can be reminded regularly to compensate their flights.

Similarly, Lufthansa Cargo customers from next summer’s flight schedule are to be offered CO2-neutral airfreight on a regular basis by offsetting emissions through either myclimate’s reforestation projects or SAF. If SAF is used, Compensaid ensures the sustainable fuel is purchased to compensate for the resulting emissions, which is undertaken in conjunction with Lufthansa Group Fuel Management and SAF manufacturers. Compensaid’s digital technology makes the process from calculation to fuelling both transparent and efficient, reports Lufthansa, which guarantees purchased SAF is put into circulation within six months.

“CO2 compensation in the business customer sector is an important and effective step towards CO2-neutral aviation,” said Gleb Tritus, Managing Director, Lufthansa Innovation Hub. “Through the larger B2B volumes, we are increasing demand and thus promoting awareness, availability and cost-effectiveness of alternative fuels.”

Lufthansa Cargo has aligned its corporate responsibility commitment with five of the 17 UN sustainability development goals (SDGs) and has committed itself to anchoring the selected sustainability goals in its corporate activities and to making a substantial contribution to achieving them by 2030.

“Lufthansa Cargo supplies people and markets with urgent goods and raw materials. We are part and driver of globalisation, which stands for economic progress and opens up new opportunities for every individual. And that does not exclude sustainability,” said Peter Gerber, CEO of Lufthansa Cargo. “We will focus more strongly on it, both in an economic and social sense. In addition to investments in a modern freighter fleet, our commitment to alternative fuels also contributes to the UN’s ‘Climate Action’ sustainability goal. Through the possibility of using SAF, we are actively driving forward research in this area and can thus relieve the environment in the long term.”

Photo: Lufthansa Cargo’s first SAF CO2-neutral flight in partnership with DB Schenker

Microsoft, Alaska Airlines and SkyNRG have entered into agreements whereby employees of the software giant will have the CO2 emissions from their air travel between Seattle-Tacoma International Airport and three West Coast destinations reduced through sustainable aviation fuel (SAF) credits purchased from SkyNRG. The funds from the credits will be used by SkyNRG to supply SAF produced by World Energy in California and delivered to the airport fuelling system used by Alaska Airlines. The three companies hope the partnership, the first of its kind in the United States, will serve as a model for other companies and organisations that are committed to reducing the environmental impact of business air travel. They said they would explore expanding the programme in the future and are supporting the development of a global environmental accounting standard for voluntary corporate SAF purchases.

“After a decade advancing sustainable aviation fuel, this partnership marks a significant milestone in the work to make SAF a commercially-viable aviation fuel alternative,” said Brad Tilden, CEO of Alaska Airlines. “SAF enables us to fly cleaner and reduce our impact on the environment. However, we cannot do this alone – we must work together with other industries and business leaders like Microsoft and SkyNRG, among others who are thinking big, to achieve our goals and grow the marketplace for SAF.”

The agreement between Alaska and Microsoft relates to flights by Microsoft employees from Seattle-Tacoma to San Francisco, San Jose and Los Angeles airports – the three most popular routes they travel on Alaska.

As part of Microsoft’s partnership agreement with SkyNRG, Microsoft will become the newest member of Board Now, a coalition of organisations committed to reducing carbon emissions from flying through directly contributing to the development of new SAF production capacity.

The SAF produced by World Energy uses waste oils and is claimed to deliver a life-cycle carbon reduction of 75% compared to fossil jet fuel and sustainability is guaranteed by SkyNRG through certification from the Roundtable on Sustainable Biomaterials.

“The emergence of a SAF production system and market is a once-in-a-century opportunity to launch a new energy source for an entire industry, guided by strong sustainability standards from day one,” said Theye Veen, SkyNRG’s Managing Director. “We are very pleased to be joined by leading companies Microsoft and Alaska Airlines in this next step.”

Microsoft has committed to be carbon negative by 2030 and by 2050 remove from the environment more carbon than it has emitted since its founding.

The company’s EVP Worldwide Commercial Business, Judson Althoff, told a World Economics Forum webinar this week that Microsoft’s carbon emissions from employee air travel accounted for around 400,000 tonnes each year.

“It’s easy to do certain things in getting to net zero carbon but air travel is one of the more difficult ones, so this year we decided to make an additional commitment relative to sustainability and while right now not many of us are travelling we do expect business travel to return to significant and substantial levels,” he said. 

“To address the challenge, we have formed partnerships with airlines like KLM and Alaska to invest in SAF for our business flights. In October, we partnered with KLM to purchase an amount of SAF equivalent to all flights taken by Microsoft employees between the US and the Netherlands. We’ve now built on this momentum by announcing a partnership with Alaska to acquire SAF for the total amount of fuel we would burn on Alaska for our busiest and most common routes for business travel.

“Whilst Covid has created a bit of relief on business travel, we expect to continue to travel in the future to engage with our customers and support them around the world, and we want to return to flying responsibly. 

“Right now, SAF is more expensive and so it is harder for energy companies to justify production, so you end up with a chicken and egg conundrum between supply and demand. In order to break this cycle, companies like Microsoft need to step forward so that energy companies can see the demand signal and produce more SAF, and so the costs will come down to allow airlines like KLM and Alaska to purchase more SAF. At the end of the day, we’re all in this together.”

Microsoft, SkyNRG and Alaska are participating in a pilot project of the World Economics Forum’s ‘Clean Skies for Tomorrow’ initiative to develop a global environmental accounting standard for voluntary corporate SAF purchases. They have also pledged to hold supplier and corporate forums to share learnings and increase interest in using SAF to lower the carbon emissions from business travel.

Photo: Alaska Airlines (Chad Slattery)