Finnish renewable fuels producer Neste is to supply sustainable aviation fuel to Wizz Air, which provides the low-cost carrier the opportunity to purchase 36,000 tonnes of SAF per year over a period of three years to use across its route network in Europe and the UK. The SAF volumes to be purchased are a key part of the airline’s environmental strategy to reduce carbon emissions intensity per passenger km by 25% by 2030 and reach net zero by 2050. Boeing has also reached an agreement with Neste to purchase 5.6 million gallons (21.2m litres) of blended SAF supplied by Neste’s partners EPIC Fuels, Signature Aviation and Avfuel to power its US commercial operations through 2023. Still in the United States, a collaboration involving Neste, Bell, Safran Helicopter Engines, GKN Aerospace and Virent has resulted in the first-ever single-engine helicopter to fly using 100% SAF.

In 2022, Airbus aircraft operator Wizz Air achieved its lowest-ever annual carbon intensity, which amounted to 55.2 grams per passenger/km, and picked up a number of industry sustainability awards.

“We continue to invest in innovative technology and believe that SAF is a key part of the solution for decarbonising the aviation industry,” said Ian Malin, EVP and Group CFO at Wizz Air. “The partnership with Neste reaffirms our progress in reducing our carbon emissions intensity, which is already one of the lowest in the world.”

Responded Jonathan Wood, VP Europe, Renewable Aviation at Neste: “We look forward to working with Wizz Air on the reduction of their carbon emissions, as we increase our annual SAF production to 1.5 million tonnes by the end of 2023.”

The purchase by Boeing more than doubles its SAF procurement from last year. The SAF will be blended with conventional jet fuel at a 30/70 ratio, with the volume of SAF supplied by Neste totalling around 1.7 million gallons. EPIC, Signature and Avfuel will supply the blended SAF for Boeing’s ecoDemonstrator programme and the company’s fuel storage in Washington state and South Carolina. Additionally, the three companies will supply blended SAF for generating emissions reduction benefits for Boeing to allocate for company operations including Dreamlifter and executive flights, and commercial airplane deliveries.

“As one of the top aircraft manufacturers in the world, Boeing is sending a clear message to the entire aviation industry through this purchase that SAF is a key solution to reduce greenhouse gas emissions from flying,” said Michael Sargeant, VP Americas, Renewable Aviation at Neste.

The 100% SAF-powered flight of the Bell 505 in Texas had been preceded by rigorous testing by Safran Helicopter Engines, the manufacturer of the helicopter’s Arrius 2R engine, and GKN Aerospace, the fuel system component supplier. Neste collaborated with Virent, the supplier of the bio-based aromatic additive, to blend, test and deliver the SAF as a 100% drop-in fuel.

“Neste is working closely with forerunners in the aviation industry on verifying that aircraft can run safely on 100% SAF,” said Wood. “This successful collaboration demonstrates that we are one step closer to enabling the entire aviation industry to take full advantage of 100% SAF as the key means to significantly reduce greenhouse gas emissions of air travel.”

Michael Thacker, EVP Commercial Business for Bell, said the flight was “a monumental achievement” for the sustainability and decarbonisation of the rotorcraft aircraft. “Showcasing a single-engine aircraft’s flight capabilities with 100% SAF signals Bell’s commitment to alternative fuel usage and builds on its sustainability practices in its flight operations,” he added.

Photo (Bell): The first-ever 100% SAF single-engine helicopter flight

Christopher Surgenor

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Japanese industrial group ITOCHU Corporation and Finnish renewable energy company Neste have announced collaborative agreements to help expedite the introduction of sustainable aviation fuel in Japan. Their commitments align with the Japanese government’s 2030 goal to replace 10% of all fossil aviation fuels with SAF. The companies have signed deals to provide SAF to Japan Airlines, initially for two test flights very shortly, and a separate MoU to explore further SAF supplies to the airline in 2023. Additionally, ITOCHU has been selected by the Japanese government to demonstrate blending in Japan of imported SAF with conventional jet fuel, in partnership with Fuji Oil Company. The blending will occur in January, and in February a portion of the mixed product will be tested in aircraft owned by the Japanese Civil Aviation Bureau. Meanwhile, Neste has agreed to supply Air France-KLM with more than 1 million tonnes of SAF over a period of eight years starting in 2023 and FBO Signature Aviation has expanded access to Neste’s SAF in California for business aviation users.

ITOCHU is a key partner in Japan’s plan to transition to SAF, and a local distribution partner for Neste. It intends to introduce commercial-scale domestic production of SAF. In October 2020 it facilitated the nation’s first SAF import, for use by All Nippon Airways, and last year was part of an industrial consortium which produced SAF from biomass materials. In February this year, ITOCHU expanded its alliance with Neste to provide SAF to Tokyo’s Narita and Haneda airports, and is planning to supply other airports including Chubu Centrair in FY 2022 and Osaka’s Kansai International Airport in FY 2023.

Japan Airlines has committed to replacing 1% of its conventional aviation fuel with SAF by FY 2025, and 10% by 2030, and as a member of the oneworld airline alliance it has also signed future SAF offtake agreements in the US. Under its agreement with ITOCHU, JAL will use Neste SAF, mainly produced from waste fats, oils and greases, to part-power a “sustainable charter flight” on 18 November, in which it will fly from Haneda to Naha Airport, Okinawa, a 1,555-kilometre journey of just under two hours. Neste SAF will also be used shortly on a scheduled JAL flight from Los Angeles to Japan, though no details have been released of the volume to be used.

“The Airbus A350 aircraft, which emits 15-25% less CO2 than conventional aircraft, will be used to operate the sustainable charter flight,” said JAL. “By using sustainable aviation fuel and exercising JAL’s Carbon Offset, the flight will achieve net zero CO2 emissions.

“By the end of first quarter 2023, Neste plans to start SAF production at its Singapore plant, which is anticipated to have an annual production capacity of 1 million tonnes. JAL seeks to continue its cooperation with Neste and ITOCHU to procure SAF both globally and domestically.”

Beyond the JAL agreements, ITOCHU Corporation has also been chosen by the Japanese Civil Aviation Bureau to demonstrate the blending of imported SAF and conventional aviation fuel. “The aim of the project is to demonstrate the blending of imported neat SAF locally in Japan, which helps the country prepare for when significantly larger quantities of SAF will be needed to help the aviation industry achieve its ambitious emissions reductions goals,” said ITOCHU.

In its latest ESG report, the company’s President and COO, Keita Ishii, said ITOCHU would “aggressively promote businesses that contribute to global greenhouse gas reductions. We will contribute to resolving major social issues by promoting a decarbonised and recycling-based society, and by establishing a resilient value chain, including promoting sustainable raw materials procurement.”

Sami Jauhiainen, Neste’s VP Asia Pacific for Renewable Aviation welcomed the opportunity to support Japanese airlines and the Japanese government in targeting the replacement of conventional jet fuel with 10% SAF by 2030. “This demonstration project solicited by the Japanese Civil Aviation Bureau is an important step on the pathway towards realising that goal, as it demonstrates the blending of neat SAF with fossil jet fuel from a domestic refinery in Japan,” he said.

Last month, ITOCHU and Neste provided blended SAF to Etihad Airways, the national carrier of the United Arab Emirates, for a series of flights from Narita to Abu Dhabi – the first non-Japanese airline to use the new supply. Etihad committed to take approximately 50,000 gallons of SAF, with the first of the Boeing 787-9 flights operating with a blend of just under 40%, and reducing carbon emissions by approximately 75.2 tonnes. As well as net zero emissions by 2050, Etihad has also committed to halving its 2019 emission levels by 2035.

Meanwhile, Neste has announced further supplies of its SAF product in Europe and the United States. In an expansion of its existing cooperation with Air France-KLM, Neste will supply the airline group with more than 1 million tonnes (1.26 billion litres) of SAF over a period of eight years starting in 2023. The SAF producer says it is one of the largest agreements of its kind in the aviation sector to date.

“This announcement marks a significant next step forward in our cooperation with Air France-KLM Group and underscores how we continue to support companies in reducing their greenhouse gas emissions,” said Neste CEO Matti Lehmus. “Neste aims to help customers cut emissions by at least 20 million tonnes of CO2e annually by 2030 with our renewable and circular solutions.”

Air France-KLM is looking to reduce its CO2 emissions per passenger/km by 30% by 2030 compared to 2019 – a target submitted to SBTi – and is aiming for a 10% incorporation of SAF by the same year. It has been working with Neste since 2019, with KLM being one of the first airlines to use Neste’s SAF.

“This landmark partnership with Neste is an important and concrete step towards the decarbonisation of our operations,” said Fatima da Gloria, VP Sustainability at Air France-KLM. “This contract embodies our long-term commitment to the development of SAF production capabilities around the world, to the benefit of the industry as a whole.”

In the United States, business aviation users now have greater access to SAF in California after the world’s largest network of Fixed-Base Operations (FBOs), Signature Aviation, announced it is to expand the availability of Neste’s SAF to all its 10 locations in the state. The two companies began a partnership in 2020 and under it they will deliver over 29 million gallons of 30/70 blended SAF, reducing over 62,000 tonnes of GHG emissions.

“Two years ago, we announced our first permanent supply of SAF for private aircraft in San Francisco. Since then, we’ve maintained a sharp focus on investing in the supply chain, collaborating with our customers and expanding availability with Neste,” said Beatrice Batty, Director Fuel Operations for Signature Aviation. “The result today is the 10 Californian locations that can decisively provide the solution to reducing private aircraft carbon emissions.”

The expanded availability is enabled by Neste’s growing capacity, said Neste. “SAF is recognised as the most effective way to reduce the GHG emissions from air travel and is an important solution to reach the business aviation industry’s pledge to achieve net zero carbon emissions by 2050,” commented Chris Cooper, President of Neste US. “Together, Signature and Neste are meeting the industry’s growing demand by increasing the volumes and locations where customers can have easy access to SAF to achieve their bold climate goals.”

For Signature Aviation, the expanded availability of SAF in California represents a central objective of Signature Renew, its company-wide sustainability initiative. It is the first FBO worldwide to offer a permanent supply of SAF, with the option available for privately-operated aircraft at aviation service facilities in California, Colorado, Washington, Alabama, Texas and the United Kingdom.

Photo: Japan Airlines A350-900

Additional reporting by Christopher Surgenor

Sustainable aviation fuels (SAF) are seen as the key driver in decarbonising the airline industry but although responsible for just a small proportion of total aviation emissions, the business aviation sector is keen to play an important role in advancing the global uptake of SAF to support carbon reduction goals. It recently brought together SAF producers, aircraft manufacturers, business jet operators and policymakers to discuss the next steps to increase uptake at its first-ever European Business Aviation SAF Summit, reports Susan van Dyk. The sector is keen for policy support to incentivise the SAF value chain and make the production, purchase and use of SAF more accessible and affordable, with provision for a robust book-and-claim system to ensure all business aviation operators have the opportunity to benefit from the emission reductions afforded by SAF. The much-anticipated upcoming release of the ReFuelEU Aviation legislative proposal will aim to establish a regulatory framework to stimulate SAF production and uptake, with a blending mandate likely to be a policy cornerstone. The virtual Summit was notable for the first details emerging of how the mandate could be implemented.

In an opening keynote, EU Transport Commissioner Adina-Ioana Vălean said the use of SAF was one of the key ways the aviation sector could contribute to climate targets and must account for an increasing share of the fuel mix over time to reach more than 60% by 2050.

“Unfortunately, production is still at a very early stage and remains close to 0.5% of total jet fuel use,” she said. “I’m confident, however, that our upcoming ReFuelEU Aviation initiative will take us to the next level. I hope it will significantly boost both production and uptake of SAF by establishing a long-term regulatory framework at the European level and avoid reliance on national initiatives.

“Blending seems the best way to increase SAF production over time. We are currently looking at possible designs, with the aim of adopting legislative proposals before the summer. Targets will be binding on the one hand but on the other they must be realistic, initially modest but becoming more ambitious beyond 2030.”

Vălean suggested synthetic fuels, which include e-fuels, would become one of the main routes to decarbonising aviation. Measures would be needed to develop the market, including targeted financial support, help with fuel certification and ensuring fair competition, she said. Discussions must also accelerate in global fora like ICAO and convince “our third country aviation partners” that SAF was the right choice to ensure the sector had a sustainable future, she told the virtual conference.

“The cost for clean fuels must be shared as fairly as possible. Airlines and aircraft operators will probably end up paying a little more for their fuel but the increase should be modest,” she said. “The challenge is huge but we know what we need to do and we need to start now as 2030 is just around the corner.”

Filip Cornelis, Director of Aviation at the European Commission, said he believed a blending mandate to be the best option to address the “chicken and egg problem and help the demand and supply curves to meet somewhere.” A blending mandate across the EU would boost demand for SAF and maintain and create a level playing field for airlines and operators, he added. In designing the regulation, Cornelis indicated the Commission “wanted to be ambitious and realistic at the same time.”

The mandate is likely be in the form of a percentage blend that can then be gradually increased over time, with reports suggesting it would start with a modest target of 2% in 2025 and increasing more rapidly in five-year stages up to 2050. The requirement would also likely fall on fuel suppliers rather than airlines and other aircraft operators, and apply to all departing flights regardless of destination.

“We want to have the maximum scope and probably not limit ourselves to internal flights, but all flights that depart from European airports,” said Cornelis. When questioned about the potential political implications of covering international flights, he suggested that by supplying the blend at every airport, all flights would automatically uplift SAF and so maintain a level playing field.

Cornelis reported the Commission expects to implement a simple enforcement instrument without a take-up obligation on individual airlines. If the blend is supplied everywhere, the uptake by individual airlines would not need to be verified. Airlines and operators will need access to data on the amount and type of SAF uptake so that they can receive credits under the EU ETS and CORSIA, he said.

Nicolas Kroll, Head of Sustainability Projects at Luxaviation Group, welcomed a simple regulation design, as business aviation is made up of small operators and a minimum additional administrative burden would be preferred. He also pointed out that claiming of credits for SAF purchases has not been clear and regulations that simplify this process will be welcomed.

Regarding the types of eligible fuels, Cornelis indicated the ReFuelEU regulations would probably rely on the general sustainability framework of the EU’s Renewable Energy Directive. By 2050, Cornelis predicted high volumes of SAF will still be required in spite of technologies such as hydrogen aircraft, probably at blends higher than 50%. Most of these will have to be e-fuels, said Cornelis, and indicated a sub-mandate for e-fuels was being considered as this technology had a significant price handicap compared to other technologies. Without a sub-mandate, e-fuels may not be able to enter the market in any significant way, whereas In the long-term, the bulk of SAF is expected to come from these fuels as they can provide very high emission reductions, he said.

Andrew Murphy, Aviation Director at Transport & Environment, welcomed the ReFuelEU initiative, stating “the sooner the regulations are there, the sooner we can begin to unlock the investment needed to bring these fuels up.” Murphy believes that e-fuels, also known as power-to-liquid, is the only technology that can be sufficiently scaled up to provide the large volumes of SAF required for decarbonisation without requiring land use.

Arvid Loken, Senior Advisor, Carbon Reduction Programme at airport operator Avinor, provided insight into the practical implementation of Norway’s 0.5% SAF mandate, which came into effect from January 2020. The mandate is applicable to domestic and international flights as the obligation is on the fuel supplier. Designed to be flexible and allow cooperation between fuel suppliers, the supplier can source the SAF at any location and provide the whole volume at one airport during any period of time, he said.

Business aviation members stressed the importance of including a book-and-claim system in the regulations, particularly as physical production and supply of SAF was still at an early stage. As John-Angus Smith, Managing Director EMEA region at Signature Aviation explained, it will allow customers “to purchase SAF where it is not available while the fuel is dispensed elsewhere.”

Production of SAF that is locally inserted into the fuel supply reduces logistics and increases sustainability, he said. Book-and-claim is a “virtual purchase and claim of sustainability” and the credit is taken at a different location by the buyer, he explained. “So it fills the local availability gap and will enable, in our view, the expansion of the market.”

This would be a “double win” for the sector, believes Smith, as the operator can lower its footprint but also help the overall sector meet its goals. “It is a physical reduction of emissions even though it is a virtual purchase and that is why it is such an important tool for us as an industry going forward,” he said.

MEP Jan-Christoph Oetjen, who is Vice-Chair of the Committee on Transport and Tourism, argued SAF was not only key in decarbonising aviation but could also reduce its non-CO2 climate impact effects. “Aviation decarbonisation is an important part of the Green Deal and the clear commitment from the business aviation sector is very important to achieve these goals,” he said.

To coincide with the Summit, a coalition of business aviation partners focused on increasing awareness and utilization of SAF within the sector released a commitment detailing its vision and proposed strategy for SAF uptake.

Photo: Signature Aviation

Susan van Dyk

GreenAir Correspondent
www.svdconsulting.ca

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