US sustainable aviation fuel production startup DG Fuels has selected Fischer-Tropsch (FT) technology co-developed by Johnson Matthey and energy giant bp for its proposed $4 billion SAF plant near the Mississippi River in Louisiana. Subject to approval being received this year, the St. James Parish facility could be in operation by 2028 and would be the largest announced FT SAF production operation in the world, says DG Fuels, with a planned capacity of 13,000 barrels per day, or around 120-135 million gallons of SAF annually. The FT CANS technology is feedstock agnostic although the facility will use plant waste, primarily sugar cane bagasse. Meanwhile, Southwest Airlines has acquired SAFFiRE Renewables, which is utilising technology developed at the Department of Energy’s National Renewable Energy Laboratory to convert corn stover, a widely available agricultural residue feedstock in the US, into renewable ethanol. SAFFiRE is now expected to proceed with developing a pilot plant in Kansas to produce ethanol for conversion into SAF by LanzaJet.

Commenting on its collaboration with Johnson Matthey and bp, DG Fuels’ CEO Michael Darcy said: “Using their co-developed FT CANS technology allows DG Fuels to scale SAF at high volume production and competitive prices for the first time ever. This innovation will take our SAF from the sugar cane fields of Louisiana to cleaner skies all across the world.”

DG Fuels has already secured offtake purchase deals with Delta Air Lines and Air France-KLM, and has a strategic partnership with Airbus to scale up the use of SAF globally. Last November, Air France announced it was investing $4.7 million in the company and the Air France-KLM group acquired an option to purchase up to 25 million gallons (75,000 tons) of SAF annually over a multi-year period beginning in 2029 from the Louisiana plant and a second facility planned in Maine. This is on top of a 2022 offtake agreement by the group for 600,000 tons of SAF from DG Fuels, to be delivered over ten years.

For its first project, the company has earmarked a 3,000-acre (1,200ha) site on the West Bank of St. James Parish for potential development of the near $4bn facility. It says the project is anticipated to create 650 direct permanent jobs, with preference given to local residents and promises to address local needs while protecting the environment and promoting economic prosperity in the area.

To help secure local support for the project, DG Fuels says it has engaged with community members and local government officials to draft a legally binding Community Benefits Agreement that would provide $26 million in funding towards a community centre, a health clinic, paid internships and other benefits. The CBA received support from the St. James Parish Council in February.

The company expects to purchase $120 million of sugar cane waste from local farmers, with nearly one third of this directly benefiting farmers in St. James Parish. This provides an environmentally-friendly and financially attractive alternative to practices where farmers burn the sugar cane trash after harvesting, it adds.

“Our clean facility will have fewer air emissions than a standard US hospital, will have no impact on the Mississippi River and will help to heal our planet,” says the company. “Our fuel made from sugar cane and plant waste is clean, sustainable and created with renewable energy.”

The FT CANS technology converts synthesis gas created in the DG Fuels’ proprietary production process to synthetic crude for further processing into SAF. FT CANS is being used by Fulcrum BioEnergy to convert municipal solid waste into SAF at its Sierra plant.

“Our FT CANS technology solution brings together decades of science and engineering expertise from bp and Johnson Matthey, and this project shows its competitiveness across a range of production scales and feedstock sources the industry needs,” said Noemie Turner, VP Technology Development & Commercialisation at bp. “We’re excited to see the relationship with DG Fuels grow, and we look forward to seeing this project come to fruition.”

Added Christopher Chaput, President of DG Fuels: “With this technology, we will create a product that is responsibly made and can be immediately substituted for conventional aviation fuel with no engine adaptations. This partnership is a significant boost to help the aviation industry reach its climate goals.”

SAFFiRE acquisition

Southwest Airlines first invested in SAFFiRE Renewables during the first phase of the ethanol producer’s pilot project in 2022 and through its newly-launched Southwest Airlines Renewable Ventures (SARV) subsidiary, the airline has now moved to acquire the company. As a result, SAFFiRE is expected to proceed with phase two by developing a pilot plant hosted at Conestoga’s Arkalon Energy ethanol facility in Liberal, Kansas.

“This acquisition marks Southwest’s transition from investor to sole owner of SAFFiRE, expressing our confidence in their technology and its potential to advance our sustainability goals, as well as the goals of the broader industry,” commented the airline’s CEO, Bob Jordan.

SAFFiRE is part of a project supported by the Department of Energy (DOE) to develop and produce scalable renewable ethanol. The Kansas plant will utilise SAFFiRE’s exclusive technology licence from NREL to process 10 tons of corn stover per day into ethanol, with a plan for the ethanol to be converted into SAF by LanzaJet’s alcohol-to-jet (ATJ) technology, which partly owes its development to the DOE’s Pacific Northwest National Lab. LanzaJet was added to the SARV portfolio in February when the airline announced a $30 million investment in the ATJ company.

Another agricultural residue, corn stover is the stalks, leaves and husks of corn plants that is largely left to decompose in the fields after the corn harvest each year. SAFFiRE plans for corn stover to be collected by custom harvesters or by local farmers and processed through a proprietary Deacetylation and Mechanical Refining (DMR) technology developed by NREL, called DMR pretreatment.

“Renewable ethanol is an important feedstock to realising high-volume, affordable SAF, which is a critical part of the journey to net zero emissions,” said Tom Nealon, President of SARV and CEO of SAFFiRE. “We are enthusiastic about the ethanol-to-SAF pathway and SAFFiRE’s potential ability to produce renewable ethanol at a scale that is economically viable.”

Image: Render of the proposed DG Fuels SAF facility on the banks of the Mississippi River in Louisiana

Christopher Surgenor

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The Asia-Pacific region, the world’s largest combined air transport market, has edged closer to lower carbon air services with significant initiatives announced in two countries, Singapore and New Zealand, reports Tony Harrington. Commencing in 2022, the Civil Aviation Authority of Singapore (CAAS) will conduct a 12-month trial of sustainable aviation fuels (SAF) at Changi International Airport with Singapore Airlines and state-owned investment company Temasek. It will also partner with Airbus on a two-year feasibility study into production, infrastructure and procedures for hydrogen-powered aircraft operations. In New Zealand, a partnership has been formed between Finnish renewable fuels company Neste and Wellington-based fuel corporation Z Energy to import sustainable aviation fuel and renewable diesel, in line with the government’s commitment to transition to a low-carbon economy. Air New Zealand and Airbus have also announced a partnership to investigate how hydrogen propulsion could be applied to the airline’s domestic operations.

Although Asia-Pacific accounts for 38% of global air journeys, it lags Europe and the US in progressing sustainable aviation. In a post-COP26 communique, the Association of Asia Pacific Airlines (AAPA), which represents 14 operators, said commercialisation of SAF was critical to reducing aviation’s emissions and government support was essential for the industry to reach net zero by 2050, which AAPA members committed to in September.

“Facilities for producing SAF are severely lacking in Asia-Pacific compared to other regions,” said AAPA’s Director General, Subhas Menon. “Taxes, onerous regulations and other penalties would only increase the cost of travel without any benefit to the environment. Conversely, government incentives and investment would contribute to the effective development of sustainable fuels and new energy sources to bolster the industry’s efforts to achieve carbon neutrality by 2050.”   

In Singapore, CAAS, Singapore Airlines and Temasek have issued a Request for Proposal, through which select, unnamed producers and suppliers have been invited to develop and implement plans to provide blended SAF. The pilot programme follows a study by the Singapore government and key industry participants to examine the operational and commercial viability of SAF at Changi Airport, one of the biggest and busiest air transport hubs in the region.

CAAS Director-General Han Kok Juan said sustainability was a key priority for the aviation industry as it recovered from the pandemic and SAF a critical enabler of decarbonisation. “The pilot, which will incorporate the blending of neat SAF in local facilities, certification of blended SAF and delivery to Changi Airport, is a significant step to operationally validate SAF integration options in Singapore. It will provide insights on end-to-end cost components, potential pricing structures for cost recovery and support future policy considerations for SAF deployment,” he said. The announcement of the Singapore SAF trial coincided with the release at the COP26 summit of the SAF Policy Toolkit, developed by the World Economic Forum’s Clean Skies for Tomorrow SAF Ambassador’s Group, of which Singapore is a member (see article).

On the study with Airbus that will look at demand for and production of alternative aviation fuels, Han said recovery from Covid-19 “will not be a return to business-as-usual but an opportunity to rebuild an aviation sector that is more sustainable. It is not a question of whether, but of how, to make flying greener and developing concrete pathways to achieve that goal while ensuring that air travel is still accessible.”

Sabine Klauke, Chief Technical Officer, Airbus, added: “The decarbonisation of our industry requires a combination of approaches, hydrogen being one of them, and will need unprecedented cross-sector collaboration to create the new aviation infrastructure ecosystem. We are therefore pleased to have CAAS as a partner, as we embark on this exciting journey.”

The CAAS-Airbus partnership initially will consider the technical feasibility of an airport hydrogen hub and infrastructure to support operations by hydrogen-powered aircraft, including the production, storage and distribution of hydrogen, ground services for aircraft, logistical equipment and refuelling systems. In addition to provision of hydrogen, the study will consider how alternative fuels could be integrated into airport developments, either from the start or progressively as technology evolved.

In New Zealand, Z Energy has partnered with Neste to import sustainable fuels. Earlier this year, as part of a broader decarbonisation strategy, the government announced it was considering SAF blending mandates, a policy already being rolled out in Europe to boost demand for SAF to levels that supported commercial production. Z Energy is a major provider of fuel in New Zealand, supplying airlines, shipping, road transport and industry. It owns and operates pipelines, terminals and bulk storage infrastructure, supplies over 200 auto fuel retailers, and owns 15.4% of Refining NZ, the country’s only oil refinery. Together with Air New Zealand, Z Energy is a strong advocate of local SAF production.

Sami Jauhiainen, Neste’s VP Business Development, Renewable Aviation, said collaboration with Z Energy was designed to grow the availability of SAF and renewable diesel in New Zealand, and to support the country’s emission reduction targets. “While the market for SAF is today more mature in Europe and North America, where regulatory frameworks create a growing market, we expect the Asia-Pacific region to follow on that path sooner rather than later,” said Jauhiainen, who in January will transfer to Singapore to take up the new role of VP Asia Pacific for Neste Renewable Aviation. The company has also announced it will open an Asia-Pacific Research and Development Centre in Singapore, to undertake advanced analytical and raw material research with partners in Singapore and across the APAC region.

Virgin Australia CEO Jayne Hrdlicka has expressed confidence investors and global SAF providers would also focus on Australia, once appropriate policy settings were in place. She told the recent IATA SAF Symposium: “We need government support to ensure the seed capital that’s needed and the funding to get up to scale is there and available, along with the tax offsets needed to motivate that investment cycle. We’re doing our bit with the Australian government to find solutions to get the ball rolling.

“We see great things happening in the US, and we’re really buoyed by that because we think some of the first mover investments that have been made elsewhere in the world will also increase the odds of success in Australia. Then the costs of experimentation and innovation are a bit lower and we can partner with others to make headway more quickly that we’d otherwise be able to do. We have to do that with support from other stakeholders, including government.

“When that curve starts to move in the right direction, all those first movers are going to be looking at the opportunities that exist globally but haven’t yet been delivered. I would fully expect that we would have companies arriving here who want to leverage the technology and capabilities that they have elsewhere, knowing that they have got a ready market for the output and hungry to just take in the opportunity.”

Earlier this year, Virgin’s rival Qantas announced a partnership with BP to explore opportunities to establish a SAF industry in Australia.

“Even though we have been flying a lot less, we’ve actually seen the same proportion of customers choosing to offset their domestic travel during the pandemic – showing that this issue remains top of mind for people,” said Andrew Parker, Qantas Group Executive Government, Industry and Sustainability. “Airlines globally have a responsibility to cut emissions and combat climate change, particularly once travel demand starts to return. The Qantas Group has set some ambitious targets to be net carbon neutral by 2050, and while offsetting emissions is a big part of that in the next few years, longer term initiatives like building a SAF sector in Australia are key.”

Photo: Singapore’s Changi Airport (© Changi Airport Group)

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Qantas and BP have formed a partnership to work towards their shared net zero ambitions by jointly exploring opportunities in advanced sustainable fuels, advocacy for further decarbonisation in the aviation sector, renewable power solutions and generation, carbon management and emerging technology. In late 2019, the Australian airline group announced a commitment to a net-zero carbon emissions target by 2050 and through its co-chair with International Airlines Group, brought together the members of the oneworld airline alliance to agree the same goal. At the same time as making its 2050 carbon neutrality commitment, Qantas pledged to offset the growth in emissions from all domestic and international operations from 2020, going beyond its obligations under the ICAO CORSIA scheme, although it has since changed the baseline to 2019 following the impact of Covid-19 on 2020 traffic. The airline has also said it would invest A$50 million ($37m) over 10 years to help develop a sustainable aviation fuel industry in the country, a key ambition of its collaboration with BP.

“While the Covid crisis has compelled us to make many changes across the business, one thing that hasn’t changed is our commitment to minimising the impact we have on the environment,” commented Andrew Parker, Qantas Group Executive, Government, Industry and Sustainability. “Even though we have been flying a lot less, we’ve actually seen the same proportion of customers choosing to offset their domestic travel during the pandemic – showing this issue remains top of people’s minds.

“Airlines globally have a responsibility to cut emissions and combat climate change, particularly once travel demand starts to return. The Qantas Group has set some ambitious targets to be net carbon neutral by 2050 and while offsetting emissions is a big part of that in the next few years, longer term initiatives like building a sustainable aviation fuel sector in Australia, are key.”

The airline group claims to operate one of the industry’s largest carbon offset programmes, with around 10% of customers booking flights on its website opting to offset the emissions from their flights. In turn, both Qantas and low-cost subsidiary Jetstar match every dollar spent by customers.

“We think the programme can grow and we have a lot of corporates, not just individuals, signing up for it,” Qantas CEO Alan Joyce told a recent Eurocontrol Aviation StraightTalk interview. “Sustainable aviation fuel (SAF) is going to take a while to get established and make it economic.”

He said Qantas would be working on a plan with BP to create a local SAF industry to help it meet the 2050 target. “BP think it’s a great opportunity. In Australia we have a massive land mass and our airline, pre-Covid, was spending $4 billion a year on fuel. There’s potential for an industry here in Australia that we’re excited about developing.”

Commenting on the tie-up with Qantas, BP’s EVP, Regions, Cities & Solutions, William Lin, said: “At BP, we’re focusing on working with corporates in key industrial sectors that currently have significant carbon emissions to manage and need to decarbonise – sectors such as aviation.

“By bringing our complementary capabilities together, we can help each other, and our customers, move at a faster pace on the energy transition journey. We are delighted to have the opportunity to collaborate with Qantas on plans to reach net-zero while continuing to deepen our existing relationship.”

Frédéric Baudry, President, BP Australia and SVP Fuels & Low Carbon Solutions, Asia Pacific, said: “This is another move towards our ambition to be a net-zero company by 2050 or sooner and help the world to get to net-zero. We believe the planet needs everyone working together on this vital cause, and that supporting companies to transition to a more sustainable future means we can all get there faster.

“Forming strong strategic partnerships with leading companies like Qantas is an important way to achieve our shared goals and we are proud that BP is working to provide decarbonisation solutions for customers in Australia.”

Photo: BP