Sustainable Aviation Fuels – GreenAir News https://www.greenairnews.com Reporting on aviation and the environment Wed, 08 Jan 2025 10:14:56 +0000 en-GB hourly 1 https://wordpress.org/?v=6.7.1 https://www.greenairnews.com/wp-content/uploads/2021/01/cropped-GreenAir-Favicon-Jan2021-32x32.png Sustainable Aviation Fuels – GreenAir News https://www.greenairnews.com 32 32 Progress on decarbonising the airline sector has been slow this year, says IATA chief https://www.greenairnews.com/?p=6460&utm_source=rss&utm_medium=rss&utm_campaign=progress-on-decarbonising-the-airline-sector-has-been-slow-this-year-says-iata-chief Fri, 20 Dec 2024 12:56:57 +0000 https://www.greenairnews.com/?p=6460 Progress on decarbonising the airline sector has been slow this year, says IATA chief

We haven’t made as much progress as we wanted, or is needed, on decarbonising the aviation sector, IATA Director General Willie Walsh said in his end-of-year industry briefing to the media in Geneva. Blame was attached to governments and big oil producers for the slow investment in sustainable aviation fuel facilities, with anticipated SAF production in 2024 falling significantly short of IATA’s own expectations. Aircraft and engine manufacturers also came in for criticism over supply chain challenges that had resulted in a big shortfall of new, more fuel-efficient aircraft deliveries this year, with the result that the global fleet was on average older than ever, leading to environmental and economic consequences. However, the airline industry as a whole is on the road to a full recovery from the pandemic and global passenger numbers in 2025 are expected to pass the five billion mark for the first time, although the sector’s CO2 emissions may also reach an all-time high.

Commenting on efforts to decarbonise the airline sector at IATA’s annual Global Media Day, Walsh said: “We needed to build on the slow progress that we have seen so far, which we had expected to improve in 2024 but we’re not at the levels we had hoped to be and we need to see greater awareness on the part of governments around the world.

“This isn’t just to do with sustainable aviation fuels, it’s about the wider transition to a net zero global economy in 2050. We’re not asking for special treatment for the airline industry, we’re just looking for the same support other industries have received in their energy transition.

“We need governments to recognise that they have a huge role to play. This can’t happen by the efforts of the airline industry alone. It must involve every player to ensure we hit the critical net zero emissions target in 2050.”

Meanwhile, the global airline industry itself is enjoying a return to the good times after Covid-19, with profitability likely strengthened still further in 2025 despite ongoing aircraft and engine supply chain challenges. Net profits are expected to be $36.6 billion in 2025 on revenues that will exceed $1 trillion for the first time – an increase of 4.4% from 2024 – and a net profit margin of 3.6%.

“This will be hard-earned as airlines take advantage of lower oil prices while keeping load factors above 83%, tightly controlling costs, investing in decarbonisation and managing the return to more normal growth levels following the extraordinary pandemic recovery,” said Walsh. “All these efforts will help to mitigate several drags on profitability that are outside of airlines’ control, namely persistent supply chain challenges, infrastructure deficiencies, onerous regulation and a rising tax burden.”

Passenger numbers are expected to reach 5.2 billion in 2025, a 6.7% rise compared to 2024 and the first time that this number will have exceeded the five billion mark.

Passenger demand (RPKs) is expected to grow by 8.0% in 2025, which is ahead of a 7.1% expected expansion of capacity (ATKs). Aircraft departures are forecast to reach 40 million, an increase of 4.6% from 2024, and the average passenger load factor is anticipated at 83.4%, up 0.4 percentage points from 2024.

IATA says its public opinion polling showed 41% of surveyed travellers said they expect to travel more in the next 12 months compared to the last 12 months, 53% expected to travel at the same frequency and just 5% said they expect to travel less.

Cargo volumes are expected to reach 72.5 million tonnes, a 5.8% increase from 2024.

A less welcome increase is in the average age of the global aircraft fleet as this has a negative impact on fuel efficiency, and therefore emissions intensity, as older aircraft are retained longer. According to Marie Owens Thomsen, IATA’s Chief Economist and SVP Sustainability, the long-term average age of the global fleet over the period since 1990 had been 13.6 years, whereas in 2024 the average age had reached 14.8 years, a record.

This is seen largely as a consequence of the supply chain issues, with new aircraft deliveries falling sharply from the peak of 1,813 aircraft in 2018. The estimate for 2024 deliveries is 1,254 aircraft, a 30% shortfall on what was predicted going into the year. In 2025, deliveries are forecast to rise to 1,802, well below earlier expectations for 2,293 deliveries. IATA foresees further downward revisions in 2025 “as quite possible”. The backlog for new aircraft has reached 17,000 planes, it says, which would take 14 years to fulfil at present delivery rates, although this should shorten over time.

“Supply chain issues are frustrating every airline with a triple whammy on revenues, costs and environmental performance,” said Walsh. “Load factors are at record highs and there is no doubt that if we had more aircraft they could be profitably deployed, so our revenues are being compromised. Meanwhile the ageing fleet that airlines are using has higher maintenance costs, burns more fuel and takes more capital to keep it flying.”

IATA says fuel efficiency, excluding the impact of load factors, was unchanged between 2023 and 2024 at 0.23 litres/100 ATKs, against a long-term trend (1990-2019) of annual fuel efficiency improvements in the range of 1.5 to 2.0%. If load factors were taken into account, fuel efficiency showed a marginal year-on-year improvement, from 4.3 litres/100 RPKs in 2023 to 4.2 litres/100 RPKs in 2024.

“The entire aviation sector is united in its commitment to achieving net zero carbon emissions by 2050. But when it comes to the practicality of actually getting there, airlines are left bearing the biggest burden. The supply chain issues are a case in point,” said Walsh. “Manufacturers are letting down their airline customers and that is having a direct impact of slowing down airlines’ efforts to limit their carbon emissions. If the aircraft and engine manufacturers could sort out their issues and keep their promises, we’d have a more fuel-efficient fleet in the air.

“We’ve been patient so far but that patience is running out and the situation is unacceptable. We are dealing with quasi monopoly suppliers who are abusing their position and this is an issue we need to look at.”

He added the performance of aircraft engines had also been “nowhere near where they should be.”

Against a backdrop of falling jet fuel prices, airlines’ cumulative fuel spend is expected to be $248 billion in 2025, a decline of 4.8% despite a 6% rise in the amount of fuel expected to be consumed – 107 billion gallons. Fuel is forecast to account for 26.4% of operating costs in 2025, down from 28.9% in 2024.

IATA’s expected 2025 jet fuel consumption of 107 billion gallons translates into around 324 million tonnes, so global CO2 emissions from the airline sector are likely to pass the one billion tonne mark in 2025 for the first time.

The cost of purchasing carbon credits to comply with ICAO’s CORSIA offsetting scheme, which started coming through in 2024, is estimated by IATA at $700 million, and forecast to rise to $1 billion in 2025. The costs for the limited quantities of sustainable aviation fuel available are estimated to add $3.8 billion to industry fuel costs in 2025, up from $1.7 billion in 2024.

On SAF, Walsh doesn’t foresee a linear growth in use although expects exponential growth beyond 2035.

“But we need to get building SAF production facilities today,” he said. “We can use existing refineries for co-processing, where blending is currently limited to 5% but has the potential to increase to 30%. This would have a major impact on capital expenditure requirements and could be achieved reasonably quickly.

“Where we have not seen as much progress as we would have liked is investment in new biorefineries. We need to call out those big fuel producers who have pulled back from their commitments to produce sustainable fuels – they need to play their part, we can’t just rely on new entrants.”

There is evidence, he said, that where jet fuel suppliers had been mandated to include SAF but had not done so and fined as a consequence, they had passed on the cost to airlines. “They don’t care if they get fined and this is a clear case where mandates make no sense whatsoever. There is zero environmental benefit. Politicians aren’t asking themselves if these measures are going to lead to the intended results. It’s disappointing and there needs to be more honesty in this debate.”

According to analysis by IATA, SAF production volumes in 2024 reached 1 million tonnes (1.3 billion litres), double the 0.5 million tonnes produced in 2023, and accounted for 0.3% of global jet fuel production and 11% of global renewable fuel. It says this is “significantly” below its previous projection for 2024 of 1.5 million tonnes, which it partially attributes to key SAF producers in the US pushing back their ramp up to the first half of 2025.

SAF production in 2025 is expected by IATA to reach 2.1 million tonnes, or 0.7% of total jet fuel production.

“SAF volumes are increasing, but disappointingly slowly,” commented Walsh.

Editor’s note: The second part of this report from IATA’s end-of-year industry analysis, which will focus on SAF, will follow next month.

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EASA releases status report on Europe’s SAF production and readiness to meet blending targets https://www.greenairnews.com/?p=6447&utm_source=rss&utm_medium=rss&utm_campaign=easa-releases-status-report-on-europes-saf-production-and-readiness-to-meet-blending-targets Thu, 19 Dec 2024 11:35:24 +0000 https://www.greenairnews.com/?p=6447 EASA releases status report on Europe’s SAF production and readiness to meet blending targets

With the EU about to activate its sustainable aviation fuel blending mandate, the European Union Aviation Safety Agency (EASA) has released an assessment of Europe’s preparedness to deliver required volumes of SAF up to 2030. The blending requirement will escalate from a minimum 2% of jet fuel composition by the end of 2025 to 70% in 2050 for supplies dispensed at airports across the EU’s 27 member states. EASA concludes that by 2030, when the blending mandate reaches 6%, there will be sufficient European production of SAF through multiple pathways to meet the requirements of the ReFuelEU Aviation regulation, which governs the mandate. But it warns rapid action is needed to ensure that a sub-target, initially 0.7%, is achieved for the use of increasingly important synthetic aviation fuels, or e-fuels.

The EASA report, titled ‘State of the EU SAF market in 2023’, examines the capacity of member states to produce the new fuels during the next five years, based on an assessment of the sector’s performance in 2023 and the addition of updated projections. The report, EASA’s first on this subject, also provides real or estimated reference prices for multiple types of current and future aviation fuels and outlines emerging trends in European SAF production.

“This first report on SAF provides a comprehensive analysis and valuable insights to the potential of sustainable aviation fuels for commercial airline operations in Europe,” commented Maria Rueda, EASA’s Strategy and Safety Management Director. “It will be a key component on the journey towards a more sustainable and environmentally friendly aviation sector.”  

EASA says the minimum SAF volume required by 2030 under the ReFuelEU Aviation (RFEUA) programme is around 2.8 million tonnes based on forecast jet fuel consumption of 46 million tonnes and a mandated blending level which, by then, will be at least 6%.

But it qualifies that the SAF production market is “inherently volatile”, impacted by factors including high capital expenditure, feedstock supply chain limitations and the risks to investors of supporting technologies in their early stages. “While many projects are announced,” adds EASA, “some may not reach commercialisation.”

The report presents three scenarios for SAF production in EU countries: Operating, Realistic and Optimistic.

The ‘Operating’ scenario covers only those facilities currently producing SAF, which are expected to deliver just over 1 million tonnes of product by 2030.

The ‘Realistic’ assumption estimates 3.2 million tonnes of SAF will be produced and distributed by facilities already operating, under construction or with small pilot plants either activated or being built. This includes co-processing of SAF in existing refineries.  

The ‘Optimistic’ case predicts 5.5 million tonnes, including pipeline production from projects which have announced elements including technology, feedstock, SAF capacity, commissioning year, location and technical partners, but are yet to be built.

“The Realistic case led to the exclusion of facilities which had not gone through final investment decision (FID) at the time of assessment,” says the report, singling out e-fuels as an example.

“There is a strong pipeline of synthetic aviation fuel projects in the EU, estimated at 1.1 million tonnes by 2030, but at the time of assessment none of these facilities had gone through FID. They were therefore not included in the realistic capacity estimation.”

The report says the hydrotreated esters and fatty acids (HEFA) process, which encompasses converted vegetable oils, waste oils, greases and fats, is the major SAF production pathway, supported by additional supplies through co-processing facilities.

It adds that immature technology for other SAF production pathways including Alcohol-to-Jet (AtJ) and Fischer-Tropsch (FT) prevented them from delivering commercial volumes of the fuel during the study reference year, 2023.

As well, says EASA, the AtJ process of converting alcohols into SAF disqualifies the fuel in the EU because the alcohols are fermented from food crops including corn and sugarcane. 

Additional pathways, including Sun-to-Liquid (StL) and Hydrothermal Liquidation (HtL), are also under development. “However,” says the report, “they remain immature, with only a couple of pilot plants announced, and their contribution to commercial SAF volumes is projected to be negligible by 2030.”

Synthetic aviation fuel is required to comprise at least 1.2% of jet fuel makeup by 2030, which EASA calculates to be a 600,000-tonne requirement. Also known as Power-to-Liquid, or PtL, this process combines water with renewable electricity to extract green hydrogen, which is then combined with captured CO2 to create SAF and other products such as renewable diesel.

“Within the EU,” says the EASA report, “more than 15 synthetic aviation fuel production facilities have been announced, primarily in countries with considerable renewable electricity capacity or infrastructure.”

However, it adds, the requirement for large volumes of renewable electricity, the costs of producing the power and limited sources of eligible carbon in many key locations drives up the costs of e-fuels.  

“The resulting production price is currently non-competitive with other forms of SAF production, particularly HEFA. Therefore, the development of synthetic aviation fuels is likely to be driven by the RFEUA sub-mandate that requires their supply.”

Of eight current or future aviation fuel categories, the report lists market prices or production cost estimates in 2023, reflecting vast premiums for non-fossil product. EASA used price reporting agency (PRA) references to provide benchmarks for price assessments or a basis for estimates.

“Whereas 2023 prices for conventional aviation fuels and aviation biofuels were available through multiple PRA indexes,” said EASA, “the market for other RFEUA aviation fuel types was either non-existent or not yet liquid enough to determine actual reference market prices for 2023. For these fuel types, a bottom-up production cost estimation was developed to provide indicative results.”

The report listed the average 2023 market price of conventional aviation fuel at €816 ($850) per tonne and aviation biofuels at €2,768 ($2,880) per tonne, the latter with an estimated production cost of €1,770 ($1,840) per tonne.

Because none of the other fuel categories had a market price in 2023, production cost estimates were produced by EASA.

Production costs for recycled carbon aviation fuels were estimated to average €2,125 per tonne, while advanced aviation biofuels averaged €2,675 per tonne, low carbon hydrogen for aviation averaged €4,700 per tonne, synthetic low carbon aviation fuels averaged €5,300 per tonne and renewable hydrogen for aviation averaged €6,925 per tonne.

But by far the largest estimates were those for synthetic aviation fuels, the average production cost of which EASA lists as €7,500 per tonne.

The same average estimate – €7,500 per tonne – also applied to synthetic fuel produced with CO2 captured at the industrial source of emission or that made from biogenic CO2.

The most expensive production cost estimated was for fuel produced with CO2 captured from the atmosphere, averaging €8,225 per tonne – more than 10 times the 2023 average market price of conventional jet fuel.

“To be able to meet the synthetic aviation fuel minimum shares, announced synthetic aviation fuel facilities would need to reach FID within the next couple of years,” says the EASA report.  

“On top of this, continuous scale-up in SAF capacity would be needed to comply with RFEUA by 2035, as the minimum SAF share required increases from 6% to 20% by that date.”

The report, developed with the support of consultancy ICF, is a precursor to a first EASA annual technical report due in 2025.

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New partnerships formed to drive e-SAF production in Nordic markets https://www.greenairnews.com/?p=6294&utm_source=rss&utm_medium=rss&utm_campaign=new-partnerships-formed-to-drive-e-saf-production-in-nordic-markets Thu, 05 Dec 2024 12:14:09 +0000 https://www.greenairnews.com/?p=6294 New partnerships formed to drive e-SAF production in Nordic markets

Both projects will rely on renewable electricity produced in Nordic nations to help create green hydrogen, which, when combined with reprocessed carbon dioxide, will be used to create e-SAF and other non-fossil-based products.

Liquid Sun has been backed by investors including Voima Ventures, Failup Ventures and Business Finland as it pursues industrial-scale production using a new low-temperature electrolysis system. The company says its technology can be integrated into existing SAF infrastructures to enable price parity with fossil fuels, which, if verified, would address one of the biggest impediments to SAF uptake – its cost.   

As well as having access to abundant supplies of renewable electricity, says Liquid Sun, significant biogenic CO2 can be sourced from the Finnish forestry industry, providing the company with “an unexpected competitive advantage” not just in e-SAF production, but in making Finland a leader in the sector.

“Securing significant funding and oversubscribing the investment round in such a challenging market situation demonstrates that Liquid Sun has proven in a very short time to be a serious player in the e-fuel market,” said the company’s Chairman, Samuel Thesleff.

“Now the real work starts as we start scaling up the production of e-SAF to an industrial scale to help drive Finland towards its emission reduction goals and a cleaner future.”

“The Nordic region is uniquely positioned to take a leading role in e-SAF production,” added Pontus Stråhlman, a partner in Voima Ventures, the lead investor in the latest funding round.  

“There is an abundant renewable energy supply, supportive industry efforts and strong government backing. We firmly believe in Liquid Sun’s ability to open an entirely new market for more sustainable aviation.”

Co-investor Failup Ventures, a Finnish-US collaboration, describes itself as an investor “backing future leaders who create impact in society.”

“We’re excited to invest in Liquid Sun because they’re tackling one of the toughest problems out there – creating sustainable fuels for a cleaner future,” said Topias Soininen, General Partner, New York, for Failup Ventures. “This is exactly the type of work we love to support.”

In Denmark, renewable energy investor Copenhagen Infrastructure Partners (CIP), SAS and Copenhagen and Aalborg airports have signed a collaboration agreement to help accelerate local e-SAF production.

They are supporting Fjord PtX, a new Power-to-X project based in Aalborg, North Denmark, which will deploy electrolysis technology at the 200-400 MW level to produce e-fuels including synthetic SAF.

The project, backed by CIP, plans to annually recycle 330,000 tons of CO2, mostly sourced from the Nordværk waste-to-energy incineration plant, to produce up to 75,000 tons of SAF, equating to 250% of the fuel required for Denmark’s domestic flights.

Construction of the new e-SAF plant will commence next year on a 20-hectare site near the Port of Aalborg, with production expected to begin in late 2028.

The renewable energy for the plant will be wind and solar generated, while the CO2 to be captured and repurposed by Fjord PtX is estimated to equate to the emissions produced by 17,000 houses.

As well as producing e-SAF and e-naphtha, excess heat from the new plant will be redirected to provide emission-free heating to around 11,000 houses in the Aalborg municipality, adding further value to the project.

The four partners will also work to build public awareness and regulatory support to speed the transition to a low carbon economy and demonstrate how it is possible to develop a ‘sustainability valley’ in Denmark, and more broadly across Scandinavian countries.

“We have been developing our project for the past three years,” said CIP partner Søren Toftgaard. “We urge European and Danish governments and authorities to step up by providing clear and supportive schemes, which will be key for the ramp up of this new industry. With the right frameworks in place, this partnership and Fjord PtX can become a cornerstone of Denmark’s sustainable future.”

“Our partnership combines expertise to drive shared sustainability goals,” added SAS President and CEO Anko van der Werff. “This agreement sets a strong foundation for our project, underscoring our commitment to an urgent transition. The opportunities ahead are simply too valuable to miss.”

“To achieve net zero emissions by 2050, it is essential to begin producing new fuels as soon as possible,” said Christian Poulsen, CEO of Denmark’s largest airport company, Copenhagen Airports.

Aalborg Airport’s CEO, Niels Kjær Hemmingsen, commented: “Aalborg is the ideal location for Fjord PtX, as it provides the essential resources needed to drive sustainable development. For Aalborg Airport, this collaboration is a key step towards fulfilling our ambitious sustainability goals.”

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IAG continues to go big on e-SAF as it inks 10-year offtake agreement with Infinium   https://www.greenairnews.com/?p=6271&utm_source=rss&utm_medium=rss&utm_campaign=iag-continues-to-go-big-on-e-saf-as-it-inks-10-year-offtake-agreement-with-infinium Wed, 04 Dec 2024 17:58:12 +0000 https://www.greenairnews.com/?p=6271 IAG continues to go big on e-SAF as it inks 10-year offtake agreement with Infinium  

Following shortly after a similar offtake deal with US e-SAF startup Twelve, International Airlines Group (IAG), the owner of British Airways, Iberia, Aer Lingus, Vueling and LEVEL, has announced a 10-year agreement to purchase power-to-liquid aviation fuel, or e-SAF, from California-based Infinium. The volume and value of the deal were not disclosed, but the e-SAF will be produced at the clean-tech company’s Project Roadrunner plant, a former gas-to-liquids facility currently being converted in West Texas. Infinium says the plant will become the world’s biggest e-SAF facility once it is fully operational. The company has backing from Amazon’s Climate Pledge Fund and Bill Gates’ Breakthrough Energy Catalyst, and in September it raised a potential $1 billion through Brookfield Asset Management towards Roadrunner and the deployment of other e-fuel projects globally. It also has a strategic deal with American Airlines for delivery of commercial volumes starting in 2026.

“Long-term, bankable commitments like these are what drive the ability to ramp up production of e-SAF,” commented Robert Schuetzle, Infinium’s CEO, on the IAG agreement.

IAG claims its airlines used an estimated 12% of global SAF supplies last year. The new deal will enable the company to access Infinium’s e-SAF for any of its five airlines, which collectively operate 582 aircraft to more than 250 destinations in 91 countries.

“So far, we’re on track to deliver our 10% 2030 SAF goal,” said Jonathon Counsell, IAG’s Group Sustainability Officer, “and agreements with innovators like Infinium are key to reaching this target.”    

Aviation’s focus on e-SAF has intensified as global demand for SAF increases dramatically and as the EU prepares to activate a 2% fuel blending mandate for flights from its airports from 1 January. EU mandates will progressively escalate, climbing to 70% by 2050. Other governments, including the UK, are following, initially with mandates varying from 1% to 10% by 2030. Both the UK and EU SAF mandates will add a power-to-liquid requirement from 2028 and 2030 respectively.

Of the Infinium investment secured from Brookfield Asset Management, more than $200 million is earmarked for developments including Project Roadrunner and up to $850 million more for deployment of other Infinium e-fuel projects globally, all subject to pre-agreed metrics.

Breakthrough Energy Catalyst has also committed $75 million in project level equity to Project Roadrunner, its first announced equity investment. Breakthrough pulls together corporate and philanthropic organisations to expedite the use of new technologies by supporting clean technology innovation in commercial-scale projects.

American Airlines, the world’s largest carrier and a partner of multiple IAG airlines in the oneworld marketing alliance, has also entered a strategic partnership with Infinium to secure commercial volumes of e-SAF produced by Project Roadrunner.

Announcing their new deal, IAG and Infinium highlighted the abundance of CO2 either captured at the source of industrial production, extracted from biogenic waste or sucked directly from the atmosphere by giant fans.

“This new class of fuel is not encumbered by feedstock limitations, has a higher degree of emissions reduction versus conventional jet fuel, and has a relatively low land and water use footprint,” said the companies.

IAG’s Counsell urged regulators to focus on measures to encourage decarbonisation of air transport, rather than increase costs for the sector.

“Aviation as an industry is working hard to decarbonise and policy should focus on solutions such as SAF, rather than only increasing costs which risk affecting the competitiveness of the European aviation industry,” he said.  

“What the industry needs is additional policy support to attract funds to construct SAF plants and reduce aviation’s reliance on fossil fuels.”

The IAG-Infinium deal follows the formation of Project SkyPower by a high-profile coalition of European companies including airlines, airports, energy companies and financiers to advocate for development of an e-SAF industry in Europe.  

A report produced by the group in May argued that e-SAF is the most effective, and eventually the most affordable, pathway to low-carbon flight and urged governments to develop policies that reduced investment risk in infrastructure development and fuel production before SAF mandates are activated.

It also estimated that capital investment of €15 billion to €25 billion ($16-27bn) would be needed by 2030, and a further €3 billion to €5 billion annually to achieve the scale needed to meet ever-increasing SAF blending mandates.

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

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US on the pathway to achieving its 2030 SAF Grand Challenge target, says DOE report https://www.greenairnews.com/?p=6249&utm_source=rss&utm_medium=rss&utm_campaign=us-on-the-pathway-to-achieving-its-2030-saf-grand-challenge-target-says-doe-report Sun, 17 Nov 2024 09:44:24 +0000 https://www.greenairnews.com/?p=6249 US on the pathway to achieving its 2030 SAF Grand Challenge target, says DOE report

Announced sustainable aviation fuel projects represent over three billion gallons of annual domestic production capacity in the United States by 2030, surpassing the target set under the US SAF Grand Challenge target, finds a new report from the US Department of Energy (DOE). The announced capacity correlates to over 10% of projected US jet fuel demand, over $44 billion of investment and more than 70,000 jobs across the SAF value chain, says the report, which will be presented at COP29 in Baku on November 21. The biggest barrier to SAF scale-up remains its price, which is currently two to ten times more than fossil jet fuel, says DOE, depending on the feedstock and conversion technology used to produce it. In October, DOE’s Loan Programs Office announced conditional commitments to issue over $1.4 billion dollars in loan guarantees each to renewable fuels companies Montana Renewables and Gevo Net-Zero 1 to help finance their SAF production facilities.

Aviation represents 3.3% of total US GHG emissions and jet fuel consumption is forecasted to increase by 2-3% annually through to 2050, says DOE, with SAF “the only viable solution” to decarbonising the sector in the near-term. The SAF Grand Challenge, established in September 2021 by government and industry, set a target of three billion and 35 billion gallons of annual SAF production in 2030 and 2050 respectively, representing 10% and 100% of projected US jet fuel demand. Current US SAF production is around 2,000 barrels per day, or about 20 million gallons per year.

The ‘SAF Pathways to Commercial Liftoff’ report looks at the near-term potential for SAF and analyses the technical and commercial readiness of several SAF production pathways, highlighting what DOE describes as “the tangible, actionable steps that both the public and private sector can take to make the United States a global leader in SAF production as soon as 2030.” Part of the DOE’s Liftoff series, it looks at market challenges, investment needs and critical pathways for deploying sustainable solutions at scale.

In order to achieve “SAF liftoff” by 2030, the report acknowledges it will require accelerated deployment of production technologies and feedstocks that are now readily available. In parallel, investments in emerging SAF technologies, such as next-generation feedstocks and innovative SAF conversion technologies, are “essential” to ensure 100% of jet fuel can be sustainable by 2050, it says.

To help make SAF more cost competitive with fossil jet, federal and state incentives are playing a necessary role but the report finds that sustained price premiums have limited airlines’ voluntary offtake.

“Long-term offtake agreements will establish the demand certainty needed both to improve financing terms and stimulate investment across the SAF value chain,” says DOE. “Airlines and producers can extend terms or increase volumes by activating third-party offtakers that are willing to pay for the environmental attribute (carbon abatement) of this low-carbon fuel to reduce their Scope 3 emissions. This activation will require the incorporation of SAF in Scope 3 emissions standards.”

The report adds that SAF liftoff will require international policy coordination, including alignment on carbon accounting, feedstock traceability and book-and-claim systems.

“With the aviation sector growing each year, there is no better time to invest in solutions that are both technologically and commercially ready today,” commented US Secretary of Energy Jennifer Granholm. “The latest in DOE’s Liftoff series, this report lays out the critical innovations and investments needed to drive down costs and further scale SAF production – paving the way for a cleaner, more competitive aviation sector that will benefit communities and businesses nationwide.”

DOE will host a webinar on November 21 featuring its senior leaders, including Dr Vanessa Chan, Chief Commercialization Officer and Director of the US Department of Energy’s Office of Technology Transitions (OTT), to outline the findings of the report.

The two commitments announced by DOE’s Loan Programs Office last month included a $1.44 billion loan guarantee to Montana Renewables, which if finalised, will help finance the expansion of a renewable fuels facility in Great Falls, Montana, that will utilize vegetable oils, fats and greases to produce SAF, renewable diesel and renewable naphtha. The other is a $1.46 billion loan guarantee to Gevo Net-Zero 1, to help finance the first-of-a-kind, large-scale corn starch-to-jet fuel facility in the United States. Located in Lake Preston, South Dakota, this facility will source US-grown, low-cost, low-carbon field corn and will use carbon capture and sequestration and renewable power to lower emissions.

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Advocacy group launches to speed up production and use of SAF across Asia https://www.greenairnews.com/?p=6232&utm_source=rss&utm_medium=rss&utm_campaign=advocacy-group-launches-to-speed-up-production-and-use-of-saf-across-asia Mon, 11 Nov 2024 20:12:27 +0000 https://www.greenairnews.com/?p=6232 Advocacy group launches to speed up production and use of SAF across Asia

A new group, the Asia Sustainable Aviation Fuel Association (ASAFA), has been launched in Singapore to help accelerate pan-Asia production and use of low carbon aero fuels. Although the Asia-Pacific region is the largest consolidated market for air travel, accounting for almost 32% of global air passenger journeys, it lags both Europe and the US in SAF momentum. ASAFA brings together a range of participants in the SAF sector, from feedstock producers to policymakers, to collectively address core challenges, including standardising regulatory policies across the region, enhancing market frameworks, and raising awareness of the fuels through initiatives ranging from monthly workshops and webinars to industry white papers. Its aim is to uniformly progress SAF development and deployment in key sub-regions including Southeast Asia, Japan, South Korea and the world’s second and third largest aviation markets, China and India.

ASAFA has been co-founded by four industry specialists, former Airbus executive Fabrice Espinosa, now the new group’s CEO, chemical engineer and sustainable transport consultant Gabriel Ho as Chief Sustainability Officer, fuels and additives specialist Dr Dietmar Posselt as Chief Technology Officer, and Hui Ling Teo, a corporate lawyer specialising in aviation finance, technology and sustainability as the group’s Director of Governance.

Founding member organisations include Korean Air; major SAF user DHL Group; SAF distributor and emergent producer SkyNRG; carbon capture and storage company 1PointFive; environmental certification group Bureau Veritas; used cooking oil collector and distributor PT Green Energi Utama; low carbon-based feed and fuel producer Marquis Energy Global; energy pricing and data supplier Quantum Commodity Intelligence; and the EU-ASEAN Business Council.

Additionally, ASAFA has signed a Memorandum of Understanding with Singapore’s Agency for Science, Technology and Research (A*STAR), which will connect members of the new group with the agency’s research institutes to help develop and implement advanced SAF technologies.

“We are placing Asia at the heart of our efforts by driving policies that resolve market inefficiencies, attract investments and establish SAF as a viable decarbonisation option for the aviation industry, making Asia a leader in SAF for net zero aviation,” explained Espinosa, a former GM for Airbus in Hong Kong, Head of Country for the company in Korea, and ex-Chairman of the Aerospace and Defence Committee of the European Chamber of Commerce in Korea.

The new group plans to develop “a collaborative ecosystem addressing the SAF value chain’s core challenges,” bringing together stakeholders ranging from feedstock providers to technology licensors, fuel aggregators, biofuel producers, airlines, investors and policy makers.

SAF development is gradually edging up across the Asia-Pacific region but initiatives are disparate and disjointed.

The world’s largest SAF production facility is operated in Singapore by global renewable energy group Neste, with capacity to produce 1 million tons per year from waste fats, oils and greases.

Some of its product has been used in Singapore, which will introduce a 1% SAF blending mandate from 2026, and plans to increase to 3-5% by 2030, while Japan and New Zealand are among other markets to import early supplies from there.

But much of Neste’s Singapore-made SAF is initially destined for Europe and North America, where demand for the fuel is already high and increasing.

Japan is progressing multiple SAF production projects ahead of a 10% blending mandate from 2030, while other projects are planned, being studied, or are underway in a range of markets across Asia and the Pacific including China, India, Thailand, Vietnam, Australia and New Zealand.

In Malaysia, the government recently announced contentious plans for the state-owned energy company Petronas to develop SAF from palm oil waste, despite bans on palm oil products in key markets including Europe.

And the Asia Development Bank has partnered with local stakeholders in the Pacific island-nation of Fiji for a feasibility study into SAF production from sugar cane.

“ASAFA’s engagement extends beyond policy reform to enhancing market frameworks that support SAF development,” said the new advocacy group.

“Through dynamic working groups comprising industry and government stakeholders, ASAFA will identify market gaps, align interests and implement measures to boost SAF accessibility and economic feasibility across Asia.

“In addition to its work on policy and market structure, ASAFA will seek to increase public understanding of SAF’s impact through tailored outreach efforts, creating a well-informed support base in the broader community.”

In many markets, a key benefit of SAF production will also be broader economic development and jobs through the conversion of local waste, particularly crop and forestry discards, providing not just recycling into alternative fuels but also a boost for the agricultural sector.

Editor’s note: Hui Ling Teo of ASAFA will be speaking at the Aviation Carbon 2024 conference in London on November 25/26

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ICAO signs agreement with IRENA to boost finance opportunities for SAF production https://www.greenairnews.com/?p=6226&utm_source=rss&utm_medium=rss&utm_campaign=icao-signs-agreement-with-irena-to-boost-finance-opportunities-for-saf-production Mon, 11 Nov 2024 12:29:03 +0000 https://www.greenairnews.com/?p=6226 ICAO signs agreement with IRENA to boost finance opportunities for SAF production

The International Civil Aviation Organization (ICAO) has signed an agreement with the International Renewable Energy Agency (IRENA) to boost financing opportunities for sustainable aviation fuels and other cleaner aviation energy projects. The Memorandum of Cooperation was signed at the recent G20 Energy Ministerial meeting in Brazil and will allow the exploration of pathways to operationalise the ICAO Finvest Hub by facilitating the identification of financial resources for scaling up SAF, lower carbon aviation fuels (LCAF) and other cleaner energy solutions. ICAO estimates that around $3.2 trillion in investments will be needed for cleaner aviation fuel production alone if its long-term aspirational goal (LTAG) of net zero emissions from international aviation by 2050 is to be achieved. ICAO is an active participant at the COP29 climate meeting, which starts today in Baku, with the UN agency’s Council President addressing a side event.

While its Assistance, Capacity-building and Training for SAF (ACT-SAF) programme already provides implementation support such as initial feasibility and economic studies, ICAO says it Finvest Hub, launched last year at its CAAF/3 conference in Dubai, is expected to play a crucial role in facilitating the matchmaking between the financing needs of project developers and the financing priorities of States, multilateral development banks and private financers. As well as acting as a platform to connect projects with potential public and private investors, the Finvest Hub aims to facilitate funding from financial institutions, encourage new and additional funding, and support developing countries and States with particular needs.

“The aviation clean energy transition is fundamental to achieving our net-zero long-term aspirational goal, as it has the potential to contribute to the majority of required emissions reductions,” said ICAO Secretary General Juan Carlos Salazar, commenting on the MoC with IRENA, the lead intergovernmental agency for the global energy transformation to a sustainable energy future. “This new cooperation is an opportunity to accelerate the energy transition of the aviation sector worldwide. ICAO is fully committed to supporting the four building blocks needed to achieve this goal – policy and planning, regulatory frameworks, implementation support and financing.”

Responded Francesco La Camera, IRENA Director-General: “Through the IRENA Energy Transition Accelerator Financing (ETAF) Platform, we find climate finance solutions dedicated to advancing the global energy transition by facilitating investment. The transition needs all hands on deck and this cooperation is a clear expression of it.”

The ETAF platform is backed by the United Arab Emirates and alongside financial support from the OPEC Fund, has mobilised commitments amounting to $1.15 billion.

The ICAO Secretary General also met last month with senior representatives from multilateral development banks and other high-level officials in Washington DC to promote the Finvest Hub. The discussions were held alongside annual meetings of the World Bank Group and the International Monetary Fund (IMF). He and ICAO’s Legal Affairs and External Relations Director, Michael Gill, also held direct meetings with officials from the World Bank, IMF, the European Investment Bank, the Inter-American Development Bank and also with industry body Airlines for America.

At a roundtable held during the G20 meeting, Salazar said 330 facilities globally are now producing SAF, with 125 airports distributing it, and more than 50 billion litres of SAF are covered by offtake agreements. He reported over 40 national or regional policies on SAF have been adopted or are under development and over 40 SAF feedstocks are now recognised under ICAO’s CORSIA scheme.

Through the global framework agreed at CAAF/3 (the third ICAO Conference on Aviation and Alternative Fuels) a year ago, ICAO and its member states “will strive to reduce international aviation CO2 emissions by 5% by 2030 through the use of aviation cleaner energies,” said Salazar.

In a keynote at a roundtable held during the Washington DC meetings, Annie Petsonk, Assistant Secretary for Aviation and International Affairs at the US Department of Transportation, reaffirmed US support for the CAAF/3 outcomes.

ICAO is participating in a number of aviation-related events at COP29, which starts today (November 11) in Baku, Azerbaijan, and has a dedicated COP29 page on its website. It is hosting a briefing session today in the SDG Pavilion, ‘Implementing a clean energy transition for international aviation in support of the UN Sustainable Development Goals’, which will include a keynote address by the ICAO Council President, Salvatore Sciacchitano, a premiere presentation of a video on climate change to mark ICAO’s 80th anniversary and an ACT-SAF signing with an ICAO member state. It will also include an overview of ICAO progress on international aviation and climate change by Jane Hupe, who heads ICAO’s environmental protection and climate activities, and a State perspective on clean energy and capacity building for international aviation by a representative from the host country’s government.

The UN agency will also take part in a number of events on Energy Day (Friday 15 November) and Transport Day (Wednesday 20 November). Its COP29 page will be updated regularly during the two-week course of the climate meeting.

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Aircraft lessor Jackson Square teams with Future Energy Global to help boost SAF production https://www.greenairnews.com/?p=6191&utm_source=rss&utm_medium=rss&utm_campaign=aircraft-lessor-jackson-square-teams-with-future-energy-global-to-help-boost-saf-production Mon, 04 Nov 2024 14:58:35 +0000 https://www.greenairnews.com/?p=6191 Aircraft lessor Jackson Square teams with Future Energy Global to help boost SAF production

Aircraft lessor Jackson Square Aviation and specialist financial services company Future Energy Global (FEG) have partnered to help generate investments needed to accelerate the production of sustainable aviation fuel. Like leasing companies placing large orders for new aircraft, FEG was formed in January to aggregate the SAF requirements of multiple customers, then use the combined amounts to book large volumes of the fuels at favourable prices. This boosts the order books and confidence of evolving SAF makers, helping them to attract funding for infrastructure and production, while also providing customers, particularly smaller airlines and corporate buyers, with access to more affordable supplies of alternative fuels that they might not be able to achieve independently. Through the new partnership, Jackson Square’s airline customers will have access not only to SAF pre-purchased by FEG, but also to its network of corporate SAF buyers and suppliers, helping drive up demand for and production of the fuel. 

Leasing companies are increasingly focusing on the need to help deliver more sustainable air transport, recognising, like airlines, that if the industry fails to reach emission reduction targets it could face tighter government regulations and even mandated reductions in flying, potentially impacting fleet suppliers.

“We’re very proud to partner with Jackson Square Aviation to accelerate SAF rollout and to build a sustainable aviation ecosystem which brings together lessors, airlines, SAF producers and corporate clients,” said Future Energy Global CEO and co-founder Natasha Mann, a former executive of the leasing company GECAS, which has since been acquired by AerCap, the world’s largest lessor of commercial aircraft.

For the airline sector to achieve its carbon emission reduction targets, says FEG, SAF production needs to increase 1,000-fold from 500 million litres today to 500 billion litres by 2050, requiring more than $1 trillion investment in infrastructure.

“FEG gives suppliers the financial stability needed to expand, while buyers gain access to a steady supply of SAF and SAF credits at predictable costs,” explained the company, which is backed by US-based Aviation Partners, a leading supplier of aircraft winglets to reduce aerodynamic drag, fuel burn and emissions.

Added Mann: “We need radical collaboration between stakeholders to achieve the industry’s common goal of net zero CO2 emissions by 2050. Aircraft lessors are central to this as they own about half of the world’s commercial aircraft fleet, and Jackson Square Aviation is leading the way.”

Jackson Square Aviation (JSA), owned by Japan’s Mitsubishi HC Capital, is a mid-size lessor of Airbus and Boeing aircraft, with 277 jets either owned or committed for purchase, and fleet deployed with 60 airlines based in 30 countries.

Its customers range from big-name, long-haul carriers including Air France and Iberia to full-service and low-cost medium-haul operators including US-based JetBlue, Canada’s WestJet, Türkiye’s Pegasus and the world’s largest operator of A320 family jets, the Indian LCC IndiGo. The lessor’s latest announced deal was two A320s to emerging Estonian-registered leisure carrier Marabu Airlines.

“We recognise the climate risk of the assets we own, we pride ourselves on owning one of the most efficient fleets in the industry and we are focused on continuing to invest in the most fuel-efficient new technology assets,” said the company.

Almost 80% of Jackson Square’s aircraft are narrowbody Airbus A220, A320 and Boeing 737-family twinjets, with the balance a mix of widebody Airbus A330s and A350s and Boeing 777 and 787 models.

The average age of the lessor’s total fleet is 5.3 years, and 77% of its aircraft are new generation marques, with 37% of its total portfolio placed with EMEA-based airlines, 34% with carriers in the Americas and 29% in the Asia-Pacific region.

“As a key player in the commercial aviation value chain, Jackson Square takes its sustainability responsibilities very seriously,” said Ryan Opeka, JSA’s COO.

“We recognise the importance of investing in a more sustainable future for the global air transport industry. We are a strong proponent of the adoption of sustainable aviation fuels globally. In partnership with Future Energy Global, Jackson Square Aviation will apply our finance expertise to help our existing and future clients decarbonise their operations with SAF.”

In September, FEG was approved as an accredited SAF trader under two global assessment programmes, International Sustainability and Carbon Certification (ISCC) and the Roundtable on Sustainable Biomaterials (RSB), both of which validate the integrity of SAF supply chains to ensure that the fuel’s development is entirely sustainable and that its claimed environmental benefits are authentic and traceable.

As part of its SAF ecosystem programme, FEG also helps to manage for its customers the nuanced complexities of SAF procurement and regulations in different markets.

Editor’s note: Natasha Mann of FEG will be speaking at Aviation Carbon 2024 later this month.

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New Zealand could meet 25% of domestic jet fuel needs with SAF from wood waste, finds report https://www.greenairnews.com/?p=6178&utm_source=rss&utm_medium=rss&utm_campaign=new-zealand-could-meet-25-of-domestic-jet-fuel-needs-with-saf-from-wood-waste-finds-report Mon, 04 Nov 2024 10:56:49 +0000 https://www.greenairnews.com/?p=6178 New Zealand could meet 25% of domestic jet fuel needs with SAF from wood waste, finds report

A feasibility study jointly conducted by Air New Zealand and US-based waste-to-fuel developer LanzaJet has concluded that up to 25% of New Zealand’s domestic aviation fuel needs could be met using sustainable aviation fuel produced locally using woody waste residue as a feedstock. The SAF would be produced through a two-stage process, initially converting the wood to ethanol using the CirculAir carbon recycling technology developed by LanzaJet and its sibling, LanzaTech, then using LanzaJet’s alcohol-to-jet (AtJ) pathway to transform the ethanol to SAF. The airline’s Chief Sustainability and Corporate Affairs Officer, Kiri Hannifin, said the findings were “very positive for a country that is heavily reliant on long-haul aviation and trade and currently imports 100% of its jet fuel.” The NZ study result closely followed the announcement of a carbon-to-SAF partnership between LanzaTech and emerging Australian SAF producer Wagner Sustainable Fuels, and another in Japan between LanzaTech and the SEKISUI Chemical Company to convert municipal and industrial waste to ethanol then SAF.

The New Zealand study was co-funded by the airline and its majority shareholder, the New Zealand government, supported by Scion, a Crown research institute focused on forestry and wood products; fuel and infrastructure company Z Energy; and Wood Beca, a project engineering business specialising in oil, gas and wood, to explore opportunities for local production of non-fossil fuels for aviation.

Announcement of the report’s preliminary conclusions followed a contentious decision by the airline to scrap its 2030 carbon emissions reduction targets and withdraw from the Science Based Targets initiative (SBTi), citing challenges to the availability of new, lower-emission aircraft types and alternative fuels, and support from governments and regulators for decarbonisation initiatives.

“Alternative jet fuel such as SAF is currently the only real tool available to address carbon emissions from long-haul aviation, so it’s crucial for connecting New Zealanders, tourists and exporters with the rest of the world,” said Hannifin.

“There is already significant international momentum and, in our view, New Zealand shouldn’t get left too far behind, or we risk seeing the flow of capital go elsewhere, or our valuable raw materials being swooped up by other markets for their own SAF.

“The right settings and regulatory environment will be important as New Zealand considers homegrown SAF because it’s the only way to secure the necessary global investment.”

LanzaJet CEO Jimmy Samartzis welcomed initial results from the feasibility study and said a second phase was now underway to investigate the potential for household and commercial waste to also be used as fuel feedstock.

“Building a new industry requires developing a broad ecosystem for SAF in New Zealand, anchored in technology and supported by policy, capital and demand to help attract funding and make it at a price airlines can afford,” said Samartzis.

CirculAir, the SAF production approach assessed in the study, combines the technologies of LanzaTech and LanzaJet to convert waste carbon into SAF.

“The process starts with LanzaTech’s carbon recycling technology which, in this case, converts gasified forestry residues into ethanol. LanzaJet then converts that into SAF using its proprietary and industry-leading alcohol-to-jet (AtJ) technology,” explained Samartzis.

“Turning woody biomass into SAF is technically possible in New Zealand and with the right settings, is an industry that can get started fairly quickly. We look forward to completing additional analysis into what other feedstocks, such as municipal household and commercial waste, could be used to make domestic SAF production an even more attractive option.”  

Soon before the conclusions were announced from the first phase of the New Zealand study, LanzaTech and LanzaJet signed an agreement to test their CirculAir carbon-to-SAF technology at ‘The Project,’ the Brisbane SAF refinery of Wagner Sustainable Fuels.

The first stage of this process uses LanzaTech’s carbon recycling technology to convert industrial emissions or municipal solid waste into ethanol, which is then transformed into drop-in SAF using LanzaJet’s AtJ technology.

The CirculAir platform is designed to unlock carbon from a multitude of waste-based resources, providing flexibility for feedstock conversion.

“The combination of LanzaJet’s leading SAF solution with the front end of LanzaTech’s proven and commercialised carbon recycling technology makes it possible to create a domestic SAF supply in Australia using local renewable waste sources, further supporting the country’s energy security while also working to protect its natural environment,” said LanzaJet’s Samartzis.

Matt Doyle, CEO of Wagner Sustainable Fuels, said the CirculAir partnership with LanzaTech and LanzaJet would advance his company’s Brisbane refinery and accelerate the development of a SAF industry in Australia, where multiple projects are now being scoped or progressing towards final investment decision.

“Together, these proven technologies can help us realise Australia’s first, fully integrated SAF production facility and provide a path to producing domestic fuel at scale,” he said.

The Wagner Project has also secured backing from both Boeing and the Queensland state government.

Earlier this year, LanzaJet also signed a licensing agreement with Jet Zero Australia, which is developing an AtJ SAF plant in Townsville, North Queensland, and will use agricultural biomass including sugar cane waste as a feedstock for the fuel.

Jet Zero, whose investors include Qantas, Airbus and Japanese petroleum group Idemitsu Kosan, plans to produce up to 102 million litres of SAF and 10 million litres of renewable diesel per year. It is targeting production from 2027. 

LanzaTech has also partnered with Japan’s SEKISUI Chemical Company to jointly develop a platform which transforms syngas from municipal and industrial solid waste into ethanol, and then into products including sustainable aviation fuel.

Under a master licence agreement, SEKISUI plans to build multiple facilities across Japan, with the first expected to produce 10 to 12 kilotons of ethanol annually for use not only in SAF but also chemicals and materials including packaging and apparel. The deal extends a decade-long partnership between the two companies to divert garbage away from landfill or incineration for recycling as product feedstock.

Japan is active in recycling and decarbonisation and is one of the leading climate action markets in the Asia-Pacific region. Among its initiatives, it has mandated that by 2030 SAF will make up 10% of all fuel used by its domestic airlines and departing international carriers.

The expanded partnership between LanzaTech and SEKISUI follows the successful operation of a pilot plant established in 2017 in Yorii-machi, Saitama, and the completion in 2022 of a demonstration plant in Kuji City, Iwate, with annual capacity to convert approximately 400 tons of municipal solid waste to ethanol for further processing.

Each year, said the companies in their announcement, Japan generates some 56 million tons of combustible waste, which ordinarily would be sent to landfill facilities, “emitting methane, a greenhouse gas 23 times more potent than carbon dioxide,” or incinerated for power generation, emitting embedded carbon into the atmosphere.

Using the LanzaTech technology, unsorted combustible waste is gasified, then converted into ethanol through the use of a microbial catalyst and gas fermentation technology which requires no chemical catalysts, heat or pressure.

“We are pleased to expand our collaboration with longstanding partner LanzaTech, whose waste-to-ethanol technology is converting municipal solid waste into a valuable resource and providing an innovative solution to ending our reliance on fresh fossil fuels,” said Futoshi Kamiwaki, SEKISUI Representative Director and Senior Managing Executive Officer.

LanzaTech CEO Dr Jennifer Holmgren said the extended agreement also progressed her company’s vision for a circular carbon economy.

“We are grateful to SEKISUI for their commitment to scaling carbon recycling across Japan,” said Holmgren, “and for being at the forefront of developing a global blueprint for other countries and businesses to follow on how to access and utilise the carbon locked in local garbage.

“Our continued collaboration with SEKISUI is setting the groundwork for providing municipalities with a platform that reduces waste, captures carbon, generates valuable feedstocks and, importantly, creates jobs.

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Airbus enters partnerships with airlines Wizz and EVA to help prepare for SAF introduction https://www.greenairnews.com/?p=6168&utm_source=rss&utm_medium=rss&utm_campaign=airbus-enters-partnerships-with-airlines-wizz-and-eva-to-help-prepare-for-saf-introduction Thu, 31 Oct 2024 18:52:07 +0000 https://www.greenairnews.com/?p=6168 Airbus enters partnerships with airlines Wizz and EVA to help prepare for SAF introduction

Airbus is to collaborate with two major airlines, European low-cost operator Wizz Air and full-service Taiwanese international carrier EVA Air, to help each prepare for the imminent introduction of sustainable aviation fuel. The airframer will partner with Wizz Air for SAF-powered trials of Airbus A321neo jets on two key routes, from Barcelona and Brussels Charleroi to the airline’s hub in Budapest, in readiness for the introduction next year of the SAF usage mandates at EU airports under the ReFuelEU plan. Airbus will also work with EVA Air for the next two years to explore multiple ways to help decarbonise the carrier’s flights while also preparing for the introduction of SAF. Their sustainability partnership was announced in Taipei during an event to mark the airline’s order for 33 new Airbus jets.

Like a growing number of carriers, Wizz Air has committed that SAF will comprise 10% of its total jet fuel use by 2030. Its test flights with Airbus, to occur before the end of this year, are designed to help operationally prepare the airline for the EU’s escalating blending mandates, which from next year will require at least 2% of total fuel uplift to be SAF.

Airbus will provide technical guidance and expertise to help maximise the efficient integration of SAF across Wizz Air’s operation while product for the trials will be supplied by Spanish refiner Cepsa and distributed to the departure airports by World Fuel Services, a division of Florida-based energy group World Kinect.

The airline will buy up to 34 metric tons of pure SAF, of which 16 metric tons will be uplifted through blends of up to 5% for the flights from Barcelona-El Prat Airport and 18 metric tons of neat SAF in a 10% blend will be provided at Brussels Charleroi.

The Wizz Air project will be conducted using the mass balancing method, through which SAF use is tracked across an airline’s network and its environmental benefits allocated to specific flights, regardless of where the fuel is physically used, enabling carriers to support SAF production and use globally.

“With this project,” said the airline, “Wizz Air is taking steps to incorporate SAF into its operations, on top of leveraging the fuel efficiency of the Airbus A321neo aircraft, testing the alignment with regulatory frameworks ahead of schedule and working to understand passengers’ awareness of SAF and surrounding policies.”

Yvonne Moynihan, the airline’s Corporate and ESG Officer, said the project demonstrated cross-industry collaboration to reduce aviation’s emissions intensity, while building broader awareness of measures to make air transport more sustainable.

“We are not only testing SAF operations but also gathering insights from our passengers on their awareness of levers to decarbonise aviation,” she said.

Results of the survey will be released publicly, not only to highlight passenger expectations but also to guide the aviation industry in enhancing sustainability efforts.

“Fuel-efficient aircraft and SAF will provide the majority of the emissions reductions our industry needs to make by 2050,” added Julie Kitcher, Airbus’ Chief Sustainability Officer, “which is why working together with partners like Wizz Air to efficiently integrate SAF across airline operations is such an important step.”

Marta Cencillo, Head of Sustainable Aviation for the SAF producer, Cepsa, welcomed the trial flights with WizzAir as “an immediate solution to help decarbonise flights” and “an important initiative to move towards effective emissions reduction ahead of the ReFuelEU mandate.”

The exercise was also a key step in the broader introduction of SAF, added Duncan Storey, World Fuel’s SVP supply and commercial development, EMEA.

“Aligning with the upcoming ReFuelEU aviation requirements is an important milestone in our efforts to expand the availability of sustainable fuels,” he said. “Since 2015, we been actively working to increase the availability of lower-carbon aviation fuels across the globe. Our SAF supply network in Europe includes multiple key locations such as the UK, Germany and France.”

Madrid-based Cepsa is changing its name to Moeve in a phased rollout beginning in November.

“I’m thrilled to announce that a great brand, Cepsa, which has been with us for over 90 years, is transforming and to tell the world that we’re becoming a different type of organisation, Moeve, in which the majority of profits will come from sustainable activities by the end of this decade,” said the company’s CEO, Maarten Wetselaar. “This well-known and collaborative company has rapidly accelerated its transformation over the past two years, reaching multiple milestones outlined in its 2030 Positive Motion strategy. Building on these achievements and those still to come, we are introducing a new brand that reflects our steadfast commitment to leading Europe’s energy transition, particularly in green hydrogen, second-generation biofuels and ultra-fast electric mobility.”

Across the world in Taipei, Taiwan, Airbus inked another sustainability partnership, this time a two-year collaboration with customer airline EVA Air, during an event to celebrate orders by the carrier for 18 long-haul Airbus A350-1000 twinjets and 15 narrowbody A321neo aircraft, which the companies estimate will reduce fuel burn and CO2 emissions by up to 25% compared to earlier model jets.

“The agreement lays the foundation for the two companies to explore over the next 24 months avenues for decarbonisation within EVA Air’s operations, prepare the ecosystem for sustainable aviation fuel adoption and ensure infrastructure readiness,” said the airline.

“These efforts will ensure that we can steadily move towards a net zero future,” added the carrier’s President, Clay Sun.

Airbus Commercial Aircraft CEO Christian Scherer said the planemaker was deepening its collaboration with EVA Air in line with a broader ambition to help decarbonise the aviation sector.

The two companies will study measures needed to prepare for the use of SAF to power commercial flights, as well as establishing procurement processes and managing certification of SAF. Airbus will also evaluate the potential contributions of multiple measures based on EVA’s current and future routes, and its operational practices.

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