Hong Kong’s Cathay Pacific Airways will acquire 38 million US gallons of blended sustainable aviation fuel (SAF) at San Francisco International Airport from California-based producer Aemetis over a seven-year period commencing in 2025. The deal is part of a 350-million-gallon commitment by the oneworld airline alliance, of which Cathay is a founding member. The product will be a blend of 60% Jet A1 fuel and 40% SAF, to be comprised of cellulosic hydrogen produced from waste wood, then combined with other wastes, non-edible sustainable oils and zero carbon intensity hydroelectric power. It will be produced at the Aemetis Carbon Zero plant, which is being developed in Riverbank, east of San Francisco. The fuel deal coincides with Cathay’s expansion of its Fly Greener carbon offset programme to include air cargo services and follows the launch earlier this year of its Corporate SAF Programme, through which customers can help compensate for business travel and air freight emissions by contributing to the cost of the airline’s sustainable fuels.

“Cathay Pacific continues to reaffirm its commitment to addressing climate change despite these challenging times,” said the company’s CEO Augustus Tang. “In the past few years, we have announced our carbon net-zero by 2050 target and our goal of achieving 10% use of SAF by 2030. In doing this, we have built a robust SAF procurement strategy to help meet our goals.

“We are pleased that this agreement with Aemetis will contribute to that effort, and we hope it will also send the right signal to the SAF industry to encourage the much-needed investment and scaling up of its supply chain,” added Tang, reinforcing broad industry hopes of global government support and policies to help deliver net zero flight emissions by 2050.

Aemetis CEO Eric McAfee said: “The Aemetis Carbon Zero plant under development in the Central Valley of California is designed to utilise zero carbon intensity electricity, negative carbon intensity hydrogen from waste wood and renewable oils along with CO2 sequestration to produce low carbon intensity sustainable aviation fuel.”

But, he added: “While the technology exists today, sustainable aviation fuel is not yet available at scale. Offtake agreements like oneworld’s commitment, as well as targeted investments, regulations and government support mechanisms, will help enable the industry’s transition towards SAF.”

So, too, will airline customer programmes such as Cathay’s Fly Greener carbon offset initiative, which has just been extended to enable cargo clients to measure the carbon emissions of specific shipments and the costs of accredited offsets. Although customers can already estimate their potential emissions by searching for flight connections via the Cathay Cargo website, the new programme uses a sophisticated carbon emissions calculator which enables registered customers to offset their shipments by airwaybill (AWB) number, up to five of which can be simultaneously lodged.

The assessment tool, which uses the latest IATA methodology, was designed by Cathay subsidiary Global Logistic System and shows the volume of emissions and the offset charge in local currency, calculated by freight weight, aircraft type, actual route flown and journey distance. After each submission, a spreadsheet is sent to the customer detailing total freight carried and claimed, and a calculation of the carbon offset valuation. Payment generates a certificate highlighting the offset total and the sustainability project, with funds transferred to validated initiatives though carbon credits purchased by Cathay Pacific.

“We know that carbon offset calculations can be complex and need to be accurate for sustainability auditing purposes,” said Chris Bowden, Cathay’s Head of Cargo Global Partnerships. “We believe that the ease and simplicity of Fly Greener and the carbon emissions calculator makes the rigour and complexity that goes into carbon emissions calculations straightforward and user-friendly, which is something our customers have been actively seeking.”

Initially, the emissions calculator will accept retrospectively-lodged AWB numbers. But future versions of the programme will embed the carbon measurement tool into Cathay Pacific Cargo’s digital booking and confirmation system, Click & Ship, enabling freight customers to add offsets directly into their bookings.

Photo: Cathay Pacific

Australia’s Qantas Group, which includes Qantas Airways and its low-cost sibling Jetstar, has unveiled a four-pillar strategy to achieve net zero emissions by 2050, targeting a 25% cut in carbon emissions by 2030, based on 2019 levels. The Qantas Group Climate Action Plan is focused on the use of sustainable aviation fuels, fuel efficiency initiatives, waste reduction and an expanded offsets programme concentrated on projects in Australia. Headlining the strategy is a commitment to use a 10% blend of SAF across the group by 2030, ramping to 60% by 2050, in addition to an average annual fuel efficiency target of 1.5% through fleet renewal and operational efficiencies in the air and on the ground. The company has also pledged to eliminate single-use plastics by 2027 and to cease sending general waste to landfill by 2030. The Qantas plan comes just days after a new report by the Sustainable Aviation Fuels Alliance of Australia and New Zealand (SAFAANZ) that urged the formation of a Jet Council to help shape and expedite the establishment of an Australian SAF industry, reports Tony Harrington.

“Aviation is a crucial industry, especially in a country the size of Australia,” commented Qantas Group Chief Executive Officer Alan Joyce on the publication of the group’s new Climate Action Plan. “Having a clear plan to decarbonise Qantas and Jetstar so we can keep delivering these services in the decades ahead is absolutely key to our future. We’ve had a zero net emissions goal for several years, so today’s interim targets are about accelerating our progress and cutting emissions as quickly as technology allows. Hydrogen or electric-powered aircraft are several decades away, particularly for the length of most [of our] flights, so our plan is focused on the technology that is within reach today.

“One benefit of setting these targets now is sending a clear signal that we’re in the market for large volumes of sustainable aviation fuel, for carbon offset projects and for products that can be recycled. That will hopefully encourage more investment and build more momentum for the industry as a whole.”

The Qantas Group has already committed an initial A$50 million ($37m) towards the creation of a SAF industry in Australia and has partnered with Air bp to explore ways of doing so. Since early this year, SAF has comprised 15% of the fuel used by Qantas on its flights from London’s Heathrow Airport, both nonstop to Australia, and increasingly to Singapore. As well, the company signed a second major agreement with US biofuels company Aemetis in March to acquire almost 20 million litres of SAF per year from 2025 to help power its flights from airports in California – it currently serves Los Angeles and San Francisco – and has revealed that negotiations are underway to secure SAF in other offshore markets. It has also intensified its advocacy for a home-based SAF industry, urging “all levels of government to lend support to ensure Australia manufactures the biofuel like the UK, US and Europe already are.”

To further help reduce its emissions, Qantas recently announced plans to acquire up to 134 Airbus A320neo and A220-family jets to replace, over a 10-year period, its current fleet of narrowbody Boeing 737-800 and 717 twinjets. The airline expects to finalise a firm order for the first group of new Airbus jets by mid-2022, to reduce fuel burn by an estimated 20%, while the low-cost Jetstar will take delivery of the first of 18 Airbus A321LR aircraft in July. As well, Qantas International is progressively introducing Boeing 787-9 Dreamliner aircraft in place of its now-retired Boeing 747-400s, has reduced its fleet of Airbus A380s and, as part of ‘Project Sunrise’ plans to fly nonstop services from eastern Australia to London and New York, and has flagged an order for ultra-long-range and fuel-efficient Airbus A350-1000 aircraft. On the ground too, the company is aiming for further efficiencies including the electrification of vehicles where possible and, from this year, the use of 100% renewable electricity to power all Qantas Group buildings in Australia.

Recognising the interim requirement to use offset programmes to achieve carbon reduction targets, Qantas has also signed a memorandum of understanding (MoU) with the Australia and New Zealand Banking Group (ANZ) and the Japanese oil and gas exploration company Inpex Corporation to evaluate a project in Western Australia which would combine carbon farming and renewable biofuels in the Wheatbelt region, an area of equivalent size to Belgium. The project will rely upon collaboration between the three companies, landowners and rural communities.

“It provides an opportunity to support reforestation and decarbonisation using drought-resilient native tree crops, integrated with existing farming systems,” said the airline. “Having completed an extensive initial assessment of the carbon farming project, the parties will undertake a more detailed feasibility study into the harvesting and processing of native biomass crops and selected agricultural waste residues to produce low-carbon renewable biofuels. Under the MoU, the first planting of native trees is expected to take place in the [southern hemisphere] winter of 2023.”

Qantas Group Chairman Richard Goyder added: “It’s exciting to see technological advances overseas, particularly in the development of sustainable aviation fuel. Australia already produces significant amounts of feedstock for sustainable aviation fuel, but exports it to other countries. In the future, these feedstocks could be used to build a domestic industry, creating jobs and fuel security here in Australia. It’s not just a huge opportunity, it is the right thing to do. Achieving net zero emissions targets will not be easy and it will take sustained and cooperative action by everyone at the Qantas Group, as well as the entire global aviation value chain, governments and investors. Supportive government policy is critical for the aviation industry to transition to low and zero-emissions technologies.”        

Goyder’s remarks echoed those of the Sustainable Aviation Fuels Alliance of Australia and New Zealand (SAFAANZ), an advocacy group which has just released a report titled ‘Bridging The Price Gap For Sustainable Aviation Fuel’ to support the urgent creation of a SAF industry in Australia.

The report recommends an initial SAF blending mandate of 2.5% in Australia, increasing to 3% by 2030. A 2.5% requirement would require approximately 235 million litres of SAF to be integrated into the aviation fuel supply chain. This volume would be sufficient to warrant the construction of at least one SAF refinery in Australia, adds the report.

“Following the lead of the UK and its Jet Zero Council, Australia should immediately establish a Jet Council to connect the state and federal governments with aviation industry stakeholders to guide the ongoing development of sustainable aviation policies,” said Shahana McKenzie, CEO of industry group Bioenergy Australia, which established the SAFAANZ to highlight and push for local SAF production in both Australia and New Zealand, the latter having recently flagged plans to introduce a SAF blending mandate.

The group has 22 members from the aviation and energy sectors, among them Qantas, Air New Zealand and Virgin Australia – the three largest airlines in the Australasian market – plus the region’s largest airport, Sydney Kingsford-Smith, the new Western Sydney Airport, which is due to open in 2026, and Boeing. Other members include major waste-to-fuels producer Neste and SAF specialists LanzaJet, World Fuel Services and Gevo.

“Robust policy frameworks and financial mechanisms are needed to unlock Australia’s SAF industry potential,” says the report, and recommended capital support and production subsidies, a national framework for voluntary purchasing by consumers and an emissions intensity scheme.

“As a priority,” said McKenzie, “the Jet Council would work with the various levels of government, along with key industry participants, to guide and support pathways for SAF research and development in Australia, as well as guide the design and implementation of policies to overcome existing barriers to SAF development.”

The SAF report has landed as the Australian government – globally criticised during Glasgow’s COP26 summit as a climate action laggard – prepares for a general election, in which the impact of climate change and the need to accelerate decarbonisation are expected to be key issues following recent catastrophic floods and bushfires. The report highlighted the Australian Bioenergy Roadmap, released late last year by the federal government, which identified the significant environmental benefits of SAF use and economic growth from SAF production. “The Bioenergy Roadmap showed that Australia could be producing 18% of the country’s aviation fuel market by 2030 if a favourable policy and market environment existed,” said SAFAANZ Chair Heidi Hauf, who is also Boeing’s Regional Sustainability Lead for Asia-Pacific.

“Australia could be the SAF capital of the Asia-Pacific region, if we act now,” added McKenzie. “Beyond emissions reduction, this initiative supports jobs in regional Australia, economic development and fuel security.”

Photo: Refuelling Qantas Boeing 787 Dreamliner

Three significant new agreements have been announced to collectively deliver more than 1.5 billion litres of sustainable aviation fuel to seven airline operators, reports Tony Harrington. German-based freight airline DHL Express has agreed to acquire more than 800 million litres of SAF within the next five years through two agreements, one with oil company bp and the other with wastes-to-fuel producer Neste. The carrier described the combined SAF deals as one of the largest in aviation to date. In a simultaneous development, the oneworld airline alliance has announced the intention of six of its 14-member airlines to jointly acquire almost the same amount – up to 200 million gallons, or around 750 million litres – of SAF from US-based renewable fuels provider Gevo for use in key Californian airports from 2027. And in the UK, the Saudi Arabian industrial group Alfanar has announced a £1 billion ($1.3bn) investment in a new waste-to-energy project to produce up to 180 million litres of SAF per year.   

DHL Express said the bp and Neste deals would provide SAF from both suppliers until 2026, sufficient to sustainably fuel 1,000 Boeing 777 freight flights per year for 12 years, between Leipzig, Germany, and Cincinnati, USA, and cutting CO2 emissions on a lifecycle basis equivalent to the annual greenhouse gas emissions of 400,000 passenger cars. Together with a previous commitment to introduce SAF to its operations in San Francisco, Amsterdam and East Midlands, UK, the latest agreements by DHL Express will exceed 50% of its target to achieve 10% SAF blending for all of its air transport by 2026.

“Using SAF is currently one of the aviation industry’s key routes to reducing CO2 emissions over the aviation fuel lifecycle with currently-available aircraft types,” said Frank Appel, CEO of Deutsche Post DHL Group, which has committed to using 30% SAF blending for all of its air transport by 2030.  DHL Express CEO John Pearson highlighted continuing concerns in the aviation industry about the global shortage of SAF. “Our key focus is to inspire more SAF suppliers to address the current supply gap,” he said. “At the same time, we are calling on policy-makers to set the right framework to accelerate market ramp-up of SAF in the EU and worldwide, including an accounting mechanism that allows flexible SAF purchases and usage.”  

Air bp SVP Martin Thomsen said the company was intensifying its partnerships with airports and airlines to help them decarbonise. “As bp transitions to an integrated energy company, we are leveraging our value chain encompassing feedstocks, global production, logistics and airport infrastructure,” he reported. “We are promoting SAF at pace to support global aviation to realise its lower carbon emissions.”

Peter Vanacker, CEO of Finland-based Neste, added: “This milestone agreement, our largest ever for SAF, underlines the growing need and urgency – as well as the commitment – to act on aviation-related emissions. SAF is a cornerstone of the aviation industry’s efforts to achieve net zero emissions by 2050. It requires a joint effort across the aviation value chain with all stakeholders, using all available raw materials and solutions, to reach that goal.”

In the US, the oneworld airline alliance has announced a plan for six of its members – Alaska Airlines, American Airlines, British Airways, Finnair, Japan Airlines and Qatar Airways – to collectively acquire up to 200 million gallons of SAF per year at a range of airports in California, for five years from 2027. The fuel will be sourced from Colorado-based renewable fuels producer Gevo and made from inedible corn products, processed to create ethanol, then converted to SAF. The RSB-certified fuel will be supplied to airports including Los Angeles, San Francisco, San Diego and San Jose from three new facilities under development in the US Midwest.

The Gevo deal is the second to be announced by oneworld within five months. Last November, the alliance revealed a joint commitment by most of its member airlines to purchase more than 350 million gallons (1.34 billion litres) of blended sustainable aviation fuel from another supplier, Aemetis, for uplift from San Francisco.

The Chairman of oneworld, Qatar Airways Group Chief Executive Akbar Al Baker, said the latest deal “reaffirms the leadership of our alliance in supporting the ambitious aviation decarbonisation targets, as well as our active role in driving the use of ICAO-recognised SAF at a commercial scale.” Rob Gurney, CEO of oneworld, added: “Five months ago, we committed as an alliance to a target of 10% sustainable aviation fuel by 2030. A second major sustainable aviation fuel offtake among member airlines builds further upon that commitment, while demonstrating the value that can be delivered when our member airlines work together.”

Gevo said it had developed two alcohol-to-jet methods which would use a variety of feedstocks produced using sustainable farming and renewable agricultural techniques. The company said its production processes would incorporate renewable energy from sources including wind turbines, biogas and combined heat and power systems (CHP) to boost efficiency and cut carbon intensity to net zero.  “When oneworld member airlines show they understand the importance of reducing fossil-carbon greenhouse gas emissions, they start making real change in the industry,” said Gevo CEO Dr Patrick Gruber.   

In yet another development, the Saudi Arabian industrial group Alfanar is to invest £1 billion in delivering the UK’s first commercial-scale production plant for sustainable aviation fuel. The Lighthouse Green Fuels project in the Tees Valley, north-east England, is expected to produce up to 180 million litres of SAF per year from converted British domestic and commercial waste. It will do so through a waste-to-liquid process which uses gasification and Fischer-Tropsch technology to convert refuse which otherwise would be incinerated or used as landfill.

The project follows a £2.4 million award to Alfanar last year as part of the UK government’s ‘Green Fuels, Green Skies’ competition to support domestic SAF production. British Prime Minister Boris Johnson announced the Alfanar investment during a visit to the Arabian Gulf, where he met with the leaders of both Saudi Arabia and the United Arab Emirates to discuss increased oil procurement to replace supplies previously sourced from Russia.

The Lighthouse Green Fuels project also complements the establishment in Teesside of the UK’s first Hydrogen Transport Hub, a partnership with Teesside University to create an innovation centre focused on clean energy research, development and testing for all modes of transport. Tees Valley Mayor Ben Houchen said the Saudi SAF development, in addition to creating 700 construction jobs and another 240 positions once the plant was operational, “further cements our region as the global go-to place to develop ground-breaking green energy technology.”

It is also aligned with the region’s ambitions for Teesside Airport to become “the UK’s first hydrogen-ready airport, and an early adopter of these sustainable aviation fuels,” he said. A hydrogen refuelling station has already been established at the airport as part of a trial across the region, and a number of organisations are testing hydrogen-powered commercial and support vehicles, with more to be introduced.

Image: DHL Express

At least nine of the 14 members of the oneworld airline alliance will between them purchase 350 million gallons (1.3 billion litres) of blended sustainable aviation fuel from California-based renewable fuels company Aemetis for flights from San Francisco International Airport over a seven-year period, commencing in 2024, reports Tony Harrington. Initially, Alaska Airlines, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, Qantas and Qatar Airways will look to using the fuel, a blend of 40% sustainable product and 60% petroleum jet fuel, with other oneworld carriers potentially joining the programme in coming months. American Airlines, with the largest share, has signed an offtake for 280 million gallons of blended fuel (120 million gallons of SAF) with Aemetis. In a separate initiative by a oneworld member, Malaysia Airlines has partnered with Petronas, the Malaysian government-owned oil and gas company, to introduce SAF by 2025 and to explore new technologies to further reduce its carbon emissions.

The oneworld partnership with Aemetis followed a joint request to fuel suppliers for the purchase of sustainable aviation fuel. Waste wood from orchards and forests will be used to produce cellulosic hydrogen, which will then be combined with waste and non-edible sustainable oils, and zero carbon intensity hydroelectric power, to make sustainable aviation fuel at the Aemetis Carbon Zero plant, which is currently being developed in Riverview, near California’s capital, Sacramento. The process technology is licensed from Axens in France, a global technology provider to the oil and chemical industries.

The renewable jet/diesel plant is on the site of a 125-acre former US Army Ammunition production plant. To further reduce carbon intensity, the Carbon Zero production process includes injecting CO2 from the production plant into a sequestration well at the plant site to permanently capture an estimated 200,000 tonnes per year of CO2.

The Chairman of oneworld, Qatar Airways Group Chief Executive Akbar Al Baker said: “Our alliance is standing together with the industry in supporting the transition to net zero. As sustainable aviation fuel will play an important role in meeting aviation’s decarbonisation targets, we are proud to establish another milestone and drive the SAF use at commercial scale.” The alliance’s Chief Executive, Rob Gurney, added the Aemetis deal “continues to demonstrate what we can achieve together as an alliance and underlines the importance of collaboration in the important work to advance environmental sustainability. This latest milestone signals our commitment in driving forward momentum for the development of sustainable aviation fuel.”

The American Airlines purchase has an aggregated value of more than $1.1 billion, including LCFS, RFS, 45Q and tax credits. American has agreed to take delivery of 16 million gallons of Aemetis SAF annually over a seven-year period from 2024, with the blended fuel delivered to SFO.

“We’re proud to join with our oneworld partners in supporting the growth of SAF through this agreement with Aemetis, and we’re eager to continue collaborating with like-minded partners to meet aviation’s climate challenge,” said the airline’s CEO, Doug Parker.

As well as producing SAF, said Eric McAfee, the founder and CEO of Aemetis, the company’s new plant is designed to deliver direct social benefits, cutting air pollution in disadvantaged local communities by reducing orchard wood burning in fields, and creating more than 2,000 direct and indirect jobs in a lower-income agricultural area.

On the opposite side of the Pacific, oneworld member Malaysia Airlines Group (MAG) has signed Memoranda of Understanding with Petronas Dagangan Berhad (PDB) and Petronas Research Sdn Bhd (PRSB) to help decarbonise air transport through the use of low carbon and sustainable fuels, innovation and technologies for carbon reduction, carbon offset and waste management, research and development for low carbon applications, and a combined advocacy campaign. As well, the companies will explore carbon capture technologies and potential uses for robotics, remotely operated infrastructure, machine learning and augmented reality in their collaboration to help decarbonise air transport. The company’s five airline divisions, led by Malaysia Airlines, operate more than 100 aircraft, ranging from regional DHC-6 Twin Otters to long haul Airbus A350s.

“MAG is committed and will continue to play an active role towards achieving net zero carbon emissions by 2050,” said the Group’s CEO, Captain Izham Ismail. “We believe SAF is one of the most significant components for aviation and we are proud to announce this landmark collaboration with one of our top suppliers, underlining Petronas’ support towards this goal.  We also look forward to the support from all stakeholders including key suppliers across the ecosystem, the government and customers.” 

The California and Malaysia deals closely follow the collective decision of oneworld’s members that by 2030, SAF will comprise 10% of the fuel they use to power their flights. The initiatives also coincided with an agreement by British Airways to introduce, potentially within months, SAF produced in the UK by oil refiner Phillips 66 (see article), and an announcement by Qantas that it was finalising its first major order for SAF, and discussing with manufacturers Airbus, Boeing and Embraer ways to expedite the development of SAF-compatible aircraft, ahead of an order for 100-plus narrowbody jets.

Photo: Qatar Airways

The recent virtual symposium hosted in the US by CAAFI, the Commercial Aviation Alternative Fuels Initiative, illustrated the increasing momentum in sustainable aviation fuel (SAF) commercial development, with companies at different stages of development outlining ambitious plans for multiple facilities over the coming years. Many facilities are already under construction or nearing completion, and the increased availability of SAF is expected to become a reality over the next few years. Significantly, many producers are pursuing net zero SAF from initial construction by integrating technologies such as renewable energy, green hydrogen and carbon capture and storage into their fuel production strategy, reports Susan van Dyk. By incorporating net zero targets as part of the initial engineering design of a facility, any SAF pathway can potentially be net zero if the right policies are in place to incentivise the greatest emission reductions.

Gevo’s first fully net zero project is planned for its Lake Preston, South Dakota, facility and across its entire feedstock supply chain, CEO Pat Gruber told the symposium. Onsite electricity used in the facility will be derived from biogas, offsite electricity from wind turbines and renewable hydrogen. As Gevo uses corn for the production of isobutanol, the feedstock supply chain is addressed explicitly through better agricultural practices and land management, improved tillage practices and sustainable fertiliser. Gevo works closely with farmers and plans to reward them according to the sustainability of their corn, according to Gruber. Adds the company: “Gevo designs our entire business with carbon value in mind from the beginning, and carbon value has an impact on everything we do. By focusing on carbon value, Gevo is set up to maximise the value of renewable energy sources. When we aim towards that goal, everything we do in developing our plans, building our facilities, working with airlines, fuel companies, farmers and other partners, becomes focused on sustainability.”

Other companies pursuing a holistic approach to net zero SAF are Velocys, Aemetis, Red Rock Biofuels, and SkyNRG Americas. The Velocys Bayou Fuels project, according to Jeff McDaniel, VP New Projects, can achieve a negative -144 gCO2/MJ carbon intensity based on the production of the facility’s electricity with solar power and further use of carbon capture and sequestration for emissions from the facility, to achieve a significant reduction in carbon intensity.

Eric McAfee, CEO of Aemetis, told the CAAFI symposium the company’s strategy for net-zero includes renewable natural gas, cellulosic hydrogen, and carbon capture and storage. The proposed facility of SkyNRG Americas aims for maximum emission reductions by producing hydrogen from electrolysis, stated CEO John Plaza, while Red Rock Biofuels is implementing engineering changes to its Lakeview facility to lower the carbon intensity of the fuels. According to CEO Terry Kulesa, the Lakeview facility will use solar power for electricity and undertake carbon capture of any emissions.

The ability of SAF to reduce emissions, reflected in the carbon intensity (CI) of the specific fuel, is a central characteristic of its environmental benefits and sustainability, and based on a life cycle assessment across the entire supply chain of the fuel production process. Under CORSIA, eligible fuels are given default CI values, termed life cycle emission factors (LSf), based on the type of technology and feedstock used, although CORSIA provides a methodology to determine the unique LSf of a SAF pathway. The default LSf under CORSIA for isobutanol-to-jet based on a corn feedstock (similar to the Gevo pathway), is 77 gCO2eq/MJ compared to conventional jet fuel of 89 gCO2eq/MJ. However, the actual calculated value for Gevo fuel is -5 gCO2/MJ, according to Gruber.  

If any type of SAF can deliver net zero, all technologies can potentially be used to meet net zero targets for the aviation sector to 2050. Proponents of synthetic e-fuels, such as Andrew Murphy from Transport and Environment, argue that power-to-liquid (PtL) fuels should be the main SAF technology in the long term as it is the only pathway that can achieve net zero. In contrast, Andreea Moyes, Global Aviation Sustainability Director at BP in a presentation at the CAAFI Symposium, argues “multiple SAF pathways are required, and all should be allowed to compete on their own merits within societal preference.” According to Moyes, the GHG profile of SAF, rather than the volume, should be the focus.

An important driver for aggressive targeting of maximum emissions reductions is placing a value on carbon. This type of policy is already in action in California’s Low Carbon Fuel Standard and has created a strong incentive for low carbon intensity fuels. The proposed Sustainable Skies Act, recently introduced in the US House of Representatives by Congressman Brad Schneider, creates exactly this type of policy in the aviation sector (see article). The Act proposes a blenders tax credit of $1.50 per gallon of SAF that provides a 50% reduction in emissions. SAF that provides greater emission reductions can earn an additional credit of $0.01 per gallon for each percentage the fuel reduces emissions over 50% up to a maximum of $2 per gallon for a 100% reduction, in order to incentivise greater reductions in emissions.

In contrast, the European ReFuelEU Aviation policy proposes a volumetric blending mandate which is not directly linked to emission reductions (see article). Although this will create a strong demand signal, it seems unlikely to drive aggressive carbon reductions of SAFs. Bryan Stonehouse, General Manager Aviation Sustainability & Risk at Shell Aviation, speaking at the recent IATA SAF Symposium, explained the role of policy for driving investment in SAF and contrasted the blenders tax credit with the ReFuelEU mandate. According to Stonehouse, the mandate is important for creating a demand but does not give the whole picture. The blenders tax credit will be the carrot for the industry, he said. According to Stonehouse, SAF is incredibly expensive and needs affordability support and argued the SAF industry needs aspects of both the ReFuelEU and the US blenders tax credit for development and scale-up.

While carbon intensity is only one component of sustainability, achieving net zero carbon intensities of SAF pathways should be a critical focus in the sector. Several US companies are engineering new facilities with a goal of achieving net-zero carbon intensity of fuels, and this seems to be driven by policies in the US that incentivise greater reductions. Designing and engineering a facility from the get-go to produce net zero fuels makes sense, and the right policies are crucial at this critical stage of investment and scale-up. While multiple policies are needed, rewarding carbon intensity reductions should play a central role in policymaking.

Photo courtesy of Alaska Airlines and Gevo

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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