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

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