The demand for SAF is high but supply remains limited as facilities are still under construction, and production in many cases is years away. But since last year, several oil companies have started producing SAF through co-processing, which is giving SAF supply a boost. In July 2021, NetJets Europe became the first customer to purchase Air bp’s ISCC PLUS certified SAF produced through co-processing of waste fats and used cooking oil in bp’s Castellon refinery in Spain. Other oil companies have followed in rapid succession to announce SAF production through co-processing, including Phillips 66 (UK), TotalEnergies (France), OMV (Austria), Eni (Italy) and bp (Germany). Phillips 66 has just supplied British Airways with a first batch of SAF produced at its Humber Refinery in the UK under a multi-year agreement. Why are the big oil companies choosing this route? Susan van Dyk takes an in-depth look at co-processing, what it means, who is doing it and what volumes of SAF are produced this way.

Andreea Moyes, Air bp’s Global Aviation Sustainability Director, explains her company’s rationale for co-processing: “As an integrated energy company, our ambition is to be a net-zero company by 2050 or sooner and to help the world get to net zero. Part of this is cutting the carbon intensity of the products we sell, such as jet fuel. We believe that all technologies and pathways, including co-processing, are needed to help the industry decarbonise.”

Co-processing is the simultaneous processing of biobased material, such as fats, oils and other feedstocks, with fossil-based feeds in refinery infrastructure. Using an existing refinery can offer benefits in terms of cost savings and carbon reduction as it removes the need to build dedicated processing units. The high market demand for SAF is playing a role in refinery decisions to co-process.

Explained Fabian Wedam, Head of Aviation at OMV Group: “Market demand for sustainable products is increasing sharply in the short to mid term and large scale dedicated SAF production units require a significant lead time for construction.” Co-processing is a stepping stone since existing assets can be used and only limited investments are needed, he said. Co-processing allows OMV to access the growing market for sustainable products in the short term using existing assets and infrastructure in OMV’s refineries. Last December, OMV signed an agreement to supply Austrian Airlines with 1,500 tonnes of SAF produced at its Schwechat Refinery during 2022.

Oil companies have the resources and expertise to produce SAF through co-processing using existing refinery infrastructure and limited investment. “Utilising the existing refinery infrastructure and their links to existing supply networks play an important role in increasing the supply of SAF,” said Moyes. The bp refinery in Lingen has started production of SAF from used cooking oil, marking the first industrial production facility in Germany using co-processing to produce SAF from waste and residues.

Co-processing enables an oil company to quickly become relevant in a net-zero world. According to Bernardo Fallas, Director of Corporate Communications at Phillips 66, “co-processing is one of the ways the Humber Refinery is positioning itself as a refinery of the future.” Phillips 66 believes markets for lower-carbon products are growing, he said. The agreement with British Airways demonstrates its Humber Refinery’s ability to supply them. The airline has just announced it has taken delivery of the first batch of SAF produced by the refinery, which it says is the first commercial-scale SAF to be supplied in the UK (see article). The blended fuel will be supplied by pipeline to several UK airports, including London Heathrow.

“We were the first in the UK to co-process waste oils to produce renewable fuels and now we will be the first to produce SAF at scale,” said Darren Cunningham, Lead Executive UK and General Manager for Phillips 66’s Humber Refinery. “We’re currently refining almost half a million litres of sustainable waste feedstocks a day, and this is just a start.”

Fallas added the Humber Refinery recently increased renewable fuel produced through co-processing from 1,000 bpd to 3,000 bpd, and the refinery aims to expand renewable fuels capacity to 5,000 bpd by 2024.

So what are the current volumes of SAF supplied through co-processing by others in the market? Air bp’s Moyes indicated her company has already produced more than 5,000 barrels per day (bpd) of biofuels (approximately 200-250 million litres total volume of biofuel, although SAF is not the only product) at three refineries through co-processing and aims to triple production by 2030 across these sites. According to Wedam, the planned production of SAF by the OMV Group for 2022 will be 2,000 tonnes, or about 2.3 million litres, of co-processed SAF.

The potential volumes of SAF that a refinery can produce through co-processing is currently limited by ASTM D1655. The standard only permits co-processing of 5% vegetable oils or waste oils and fats, and Fischer-Tropsch synthetic liquids for SAF production. Although 5% may seem a small amount, it could still be considerable if the scale of refinery operations is considered. Bp’s Castellon and Lingen refineries each have a capacity of about 100,000 barrels per day, so 5% amounts to 5,000 bpd (about 200-250 million litres per year).

However, indicated Steve Csonka, Executive Director of the Commercial Aviation Alternative Fuels Initiative (CAAFI) in the US, the 5% “current maximum co-processing volumetric limits are being assessed by a standing ASTM Task Force for possible increase, with broader voting to be accomplished upon the Task Force’s completion in the coming months.”

Moyes confirmed: “Air bp is leading the Task Force seeking to increase the sustainable aviation fuel content of traditional jet available from refineries co-processing renewable feedstocks. The hope is to raise the limit from 5% to 30% to benefit customers and global supply.” Increasing the feedstock limits for co-processing are likely to have a significant impact on the volumes of SAF that could be supplied via this route.

SAF produced through co-processing can be certified as sustainable and is also recognised under CORSIA as an eligible fuel. According to Air bp, the SAF produced through co-processing and supplied to Netjets received ISCC PLUS certification. The SAF had an attributed saving of around 80% carbon emissions over its lifecycle compared with conventional jet fuel based on a mass balance approach. It should be noted that this value is only calculated based on the renewable content in the finished fuel. ISCC has developed a guidance document on the certification of co-processing to assist companies. Various methods or a mixture of methods are permitted to calculate the bio-yield, including radiocarbon 14 analysis, to ensure that only the renewable content is counted.

All the co-processing activities mentioned used fats and oils feedstocks, in most cases waste fats and used cooking oils (UCO). The types of feedstock are currently restricted under ASTM D1655 and limited to fats and oils, and Fischer-Tropsch synthetic liquids. FT syncrude is not currently used in co-processing as it is not commercially available at this time. Other feedstocks may be permitted in future if ASTM certification is achieved, usually a very rigorous process.

“Feedstock availability, as well as reliability of supply and quality, will be one of the key challenges in the future,” said OMV’s Wedam. “Already today, the market for SAF-suitable feedstock is very competitive. Lipid feedstocks will not be sufficient once the aviation industry moves further towards carbon neutrality.”

Feedstock challenges

The challenge with future availability of waste oils and fats feedstock for SAF production has been confirmed in an ICF report, ‘Fueling net zero’. Renewable diesel and biodiesel compete for the same feedstock, and significant expansion of renewable diesel facilities will soon place a constraint on supply.

According to Moyes, bp recognises that “increasing feedstock availability is an important part of increasing overall SAF production and there are two elements to this. Firstly, as most commercial production today uses HEFA feedstocks, increasing these in the short-term is key. In support of this, bp recently entered into a 10-year strategic agreement with Nuseed enabling Nuseed to accelerate the expansion of its Carinata sustainable production programme.

“Secondly, bp plays an ongoing role in researching and developing the technologies required to bring the different SAF production technology options to commercial production. This widens the feedstocks that can be used. For example, bp and Johnson Matthey have developed a simple-to-operate and cost-advantaged Fischer-Tropsch technology that can operate both at large and small scale to economically convert synthesis gas, generated from sources such as municipal solid waste and other renewable biomass, into long-chain hydrocarbons suitable for the production of SAF. Using all technology options, we believe there is enough feedstock availability to meet the industry’s SAF requirements.”

Other feedstocks that have great potential for co-processing are bio-oils/biocrudes produced through technologies such as fast pyrolysis (bio-oils), catalytic pyrolysis or hydrothermal liquefaction (HTL, biocrudes). Unlike fats and oils, these biocrudes can be produced from wastes such as forest or agricultural residues that are available in far greater volumes. However, these technologies are at various stages of technology readiness.

The recently completed Pyrocell plant in Sweden, using BTG Bioliquids’ fast pyrolysis technology, has started producing bio-oil, which will be co-processed by Preem at the Lysekil refinery in Sweden to produce renewable diesel and gasoline. Note that the feedstock limitations under ASTM D1655 for SAF production do not apply to other fuel products. Preem, considered the leader in co-processing activities, has co-processed 30% tall oil methyl esters into drop-in fuels for more than a decade. Following a revamp last year, Preem’s Gothenburg refinery is currently able to co-process 95% tall oil methyl esters and tallow, according to Fredrik Hellesöy, Strategic Business Development Manager at Preem. This highlights the unlimited potential of co-processing to produce significant volumes of low-carbon intensity fuels.

Due to the current feedstock limitations under ASTM D1655, Preem is not producing SAF, but if the 5% limit is increased to 30%, SAF production will become economically feasible, said Hellesöy. For Preem, co-processing is just a step on the way to full conversion, he stated.

Co-processing can increase the supply of sustainably certified SAF in the short-term at current co-processing limits and could become more significant if these limits are increased, and other feedstocks are certified under ASTM. Using existing refinery infrastructure allows for more rapid production of SAF as construction of new facilities proceed. At the same time, it is part of the long-term business strategies of oil companies for a net-zero future.

“This strategy secures long-term business in an ever-changing world and supports the company’s commitment to a sustainable energy future,” said Fallas at Phillips 66.

Added Martin Thomsen, CEO, Air bp: “We believe SAF is one of the aviation industry’s key routes to reducing carbon emissions, and ISCC PLUS certified SAF is the first step towards developing new refining and commercial solutions, including those that achieve CORSIA certification, to keep decarbonising our offers for our aviation customers. Co-processing is an important step in replacing fossil fuel with renewable feedstocks within refineries.”

Photo: The bp refinery in Lingen, Germany (© bpPLC)

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

• Linkedin

A consortium of 60 airlines operating in Canada has created and launched the Canadian Council for Sustainable Aviation Fuels (C-SAF) with a goal to facilitate the production and supply of affordable, low-carbon, made-in-Canada SAF, reports Susan van Dyk. The Council’s next step is to develop an industrial transition roadmap to clarify priority targets for the sector to achieve net zero by 2050. The ultimate goal, said Geoff Tauvette, Executive Director of C-SAF, is to identify the obstacles to SAF development and take steps to remove these barriers to create a thriving SAF industry in Canada. The consortium of domestic, international and cargo airlines operating in Canada own and operate aviation fuel storage and distribution facilities at 11 major airports across Canada, representing about 75% of total jet fuel uptake in Canada, said Tauvette. C-SAF has a further 40 members committed to advancing SAF production and use in Canada that include fuel and feedstock suppliers, fuel producers, aerospace manufacturers, airports, finance and academia.

While airlines were the “genesis” of the Council, they know they need to work with others along the entire value chain to accomplish their goals, said Tauvette. “Decarbonising Canadian aviation requires collaboration between industry, governments, scientists and airlines,” he told GreenAir. “The C-SAF provides a space for a common dialogue to facilitate the exchange of ideas to reduce GHG emissions from aviation and we strongly believe that with everyone working together, change can happen faster.”

He reported C-SAF is targeting midsummer for completion of an ambitious roadmap that will determine priorities and workstreams to address barriers. The Council will be working closely with government to put in place a set of coherent public policies to attract investment and accelerate domestic SAF production. Although electric and hydrogen technologies are being developed in Canada, SAF will have to deliver the bulk of emission reductions in the sector. While SAF can cost up to eight times more than conventional jet fuels and with production costs not expected to be competitive for the foreseeable future, effective policies are critical for SAF acceleration, he said.

There is currently no commercial SAF production in Canada, although several companies are involved in development of SAF production across the entire spectrum of SAF technologies, including gasification, power-to-liquids, hydrothermal liquefaction and co-processing. The HEFA process for SAF production is currently the only fully commercial technology for SAF production worldwide and produced by companies such as Neste and World Energy. Several companies have announced the planned construction of HEFA facilities in Canada that will produce SAF and renewable diesel from fats, oils and greases, although SAF production is not expected before 2025.

Other initiatives to promote SAF in Canada have included ‘The Sky’s the Limit’ competition to find a Canadian producer of SAF. The challenge was announced and launched in 2018 by Natural Resources Canada, a government department. Four finalists were selected for a Green Aviation Fuels Innovation Competition in 2019. The winner will be announced in Spring 2022 and will receive prize money of C$5 million ($4m) to help fully commercialise their technology.

The formation of C-SAF is expected to streamline all these initiatives in cooperation with government departments, with C-SAF acting as the voice for its members.

“We want to promote and implement sound public policies to address aviation’s need for a sustainable, made-in-Canada, affordable supply of aviation fuel. I salute the vision of the industry players and thank all of our partners who will enable Canada to become a leader in the decarbonisation of global aviation,” said Tauvette. He was emphatic that one word should describe the consortium’s approach: “Action!”

SAF can be produced from renewable and sustainable feedstocks that are widely available in Canada. An extensive and sustainably certified forest sector can provide abundant feedstocks such as forest residues that can be converted into SAF. Canada is home to 40% of the world’s sustainably certified forests. Canada is also a significant global producer of canola (similar to rapeseed) that can provide a feedstock for HEFA production, together with waste fats and greases. Canadian canola producers target a total harvest of 26 million tonnes by 2025. According to Tauvette, Canada has all the ingredients to create an affordable and reliable SAF market: an abundance of renewable feedstocks, low-carbon energy sources, climate policies and evolving carbon pricing.

“The aviation industry is in constant evolution to ensure a greener future for our planet. With the launch of the C-SAF, Canada’s aviation sector will remain competitive and create jobs for Canadians while reducing pollution. This initiative will help in Canada’s goal in achieving net zero emissions by 2050 and is a step in the right direction for the aviation industry,” commented the Minister of Transport, Omar Alghabra.

Photo: Montreal Trudeau International Airport

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

• Linkedin

Over past years, a number of test flights have been carried out using 100% sustainable aviation fuel, therefore unblended with conventional jet fuel. Boeing and other aircraft and engine manufacturers have committed to delivering commercial airplanes ready to fly on 100% SAF by 2030. In December, United Airlines flew the world’s first passenger flight with 100% SAF fuelling one engine. While it may seem that flying on unblended SAF may soon be the norm, the situation is significantly more complex. ASTM standards do not allow SAF to be used neat today and is mostly limited to a 50% blend, with a maximum of 10% in some cases. SAF production technologies produce fuels that are chemically distinct, even though the universal term SAF implies that they are all the same. Susan van Dyk unpacks ASTM standards, the meaning of 100% SAF and ‘drop-in’ fuel, and the future prospects for commercial flights operating on unblended SAF.

Jet fuel must comply with strict standards to ensure safe operability under the conditions encountered during a flight. ASTM D1655 defines the minimum property requirements for Jet A and Jet A-1. With the advent of synthetic fuels, a dedicated standard, ASTM D7566, was developed to specify requirements and definitions for manufacturing and blending synthetic jet fuel blending components with conventional jet fuel. Not all synthetic fuels are sustainable and classified as SAF, for example coal-based fuels, as the standard neither determines nor requires the synthetic components to be procured sustainably. Seven types of synthetic jet fuel blending components – based on different production process technologies – are currently approved under ASTM D7566, which sets out the specifications and blending limits under separate Annexes. At present, a blending limit of 50% maximum is applicable for most types of synthetic jet fuel.

Questioned about the 50% blend limit under ASTM, Steve Csonka, Executive Director of the Commercial Aviation Alternative Fuel Initiative (CAAFI), whose members have played an important role in the standard setting process, explained the sector is still in its infancy. The current ASTM specification (D7566) for synthetic jet fuel is based on the initial understanding in 2009. At the time, a conservative approach was taken, and in many cases the 50% blend limit reflected industry caution to ensure aircraft and engine manufacturers (OEMs) had confidence in introducing synthetic fuels into use, recalled Csonka. The alcohol-to-jet technology, for example, had an initial blend limit of 30%, which was then increased to 50% after more testing.

The industry continues to progress in developing the ASTM standard based on new knowledge, he added. However, a decision was made early on that a drop-in approach was needed where no new infrastructure would be required since, he pointed out, the industry does not want segregated fuel systems, so higher blend levels will be pursued while remaining with the standard for a drop-in fuel.

The term ‘drop-in’ is used to denote fuels that can serve as a full substitute for the fossil-equivalent fuel and must be fully formulated (paraffins and aromatics) and fit-for-purpose. While currently specified unblended SAF in D7566 is generally perceived as a drop-in fuel, this is not correct for all types, as it is the blended fuel (SAF plus conventional jet fuel) that is a drop-in fuel for all types. Consequently, as a final step in producing SAF, D7566 requires blending of SAF blend components with conventional jet fuel and retesting to meet jet fuel property requirements.

The term SAF creates the impression that all SAFs are equal, but this is not the case as different types of technologies produce compositional variations across SAF blending components. Even using the same technology, different producers will not produce identical products, just as different refineries, using different crude oil, today produce jet fuel with varying compositions. Current ASTM-approved SAF types are either compositional subsets of jet fuel or fully formulated jet fuel compositions. The degree of compositional similarity determines their drop-in potential and therefore their maximum allowed blending percentage. SAF technologies such as Catalytic Hydrothermolysis Jet (CHJ) have a fully formulated jet fuel composition and therefore potentially could produce a drop-in SAF unblended, and it is expected that the blend level will eventually be increased to allow 100% of this type to be used unblended, said Csonka. Similarly, the SAF type FT-SPK/A (Fischer-Tropsch synthetic paraffinic kerosene and aromatics) is a fully formulated jet fuel obtained by blending synthetic aromatics with synthetic paraffins from the Fischer-Tropsch process.

Aromatics essential in jet fuel

Aromatics in jet fuel are needed for maintaining seal compatibility. They are reactive molecules that infiltrate the seal elastomeric material to promote seal swelling, and a lack of aromatics results in seal shrinkage which can lead to fuel leakage and seal failures with certain types of seals that exist in older legacy engine products, airframes, facilities and fuelling trucks. Fuel-seal compatibility is a key consideration for SAF certification and blending limits. The ASTM D1655 specification allows for an aromatic content of <25%, and fuel surveys indicate perhaps an average level of aromatics in petro-jet fuel worldwide is around 17%. Thus, mixing a 0% aromatic blending component, for example SPK, with a 17% aromatic petro-jet fuel at 50/50 ratio will result in a blended SAF having at least an 8% aromatics level. Such a level is viewed as being sufficient to maintain requisite fuel characteristics.

Several test flights on 100% neat SAF have used unblended HEFA-SPK, showing that it is possible to operate aircraft without any technical concerns. However, the engines and aircraft used for these flights have either been modified to include seals that do not require aromatics to prevent leakage, or their current designs and configurations have recently eliminated such materials. Should unblended HEFA-SPK be used in an incompatible jet engine and aircraft, seal leakage could occur, which may compromise the safe operation of the aircraft.

According to Csonka, there are currently more than 25,000 ‘legacy’ aircraft in use over the world, and widespread use of unblended paraffinic SAF at every airport will require modification of most of these aircraft and engines, as well as the infrastructure, so making it a daunting task. Aircraft are in use for decades and the natural replacement of aircraft is a very slow process. These legacy aircraft will need jet fuel certified to current standards, meaning that it must contain some level of aromatics, even if reduced, or other fuel molecules that can replicate the function of aromatics.

In order to achieve the climate benefits of zero or low aromatics, said Csonka, researchers are exploring the possibility of using alternative compounds such as cycloparaffins to serve the same purpose as aromatics.

If SAF must have aromatics, why are OEMs carrying out test flights on 100% SAF without aromatics?One of the main reasons for test flights using 100% HEFA was to test the impact of 100% SAF on non-CO2 climate effects through persistent contrail formation. A NASA/DLR study, flying on 100% SAF and monitoring emissions through a chaser aircraft, demonstrated that using 100% HEFA-SPK, non-CO2 climate effects from aviation could be reduced as the absence of aromatics reduces particulate formation and persistent contrails that are tied to particulates.

As Csonka explained, doing test flights with 100% SPK has allowed researchers to measure the full impact of zero aromatics. They determined aromatic compounds are the biggest culprits in particulate formation and persistent contrails. In the process, airframers have demonstrated that much of their current production equipment can use 100% HEFA-SPK, although some additional work is still needed to verify complete compatibility.

Boeing has made a commitment to ensure compatibility of its current and future airplanes with 100% SPK (or 100% SAF without aromatics) by 2030. Speaking at the IEA Bioenergy end-of-triennium conference in November 2021, Sean Newsum, Director of Environmental Strategy at Boeing, explained the objective is to ensure airplane compatibility issues do not limit long-term growth of SAF supply.

Although the legacy fleet will not be able to use 100% SPK for decades to come, test flights with 100% HEFA-SPK are being carried out by OEMs to remove the barriers to higher blends and enable deeper carbon reductions, said Csonka.

ASTM 100% SAF certification

Will it be possible to certify 100% SAF under ASTM?Theoretically, this is possible, said Csonka, but it will depend on the type of SAF and the functional characteristics of the unblended SAF, which will be measured through extensive testing and evaluations according to ASTM procedures. Two SAF production process technologies, CHJ and FT-SPK/A, can likely already produce a drop-in equivalent SAF unblended and it is expected that the blend level would be increased to allow 100% of this type to be used unblended, he reported.

A drop-in 100% SAF could potentially also be obtained using a mixture of different types of SAF types, said Csonka. It means that a SAF technology producing only paraffinic kerosene will have to be blended with aromatic or certain cycloparaffinic compounds. The blend could still be 100% renewable if the aromatic compounds are derived from biobased feedstocks. The ASTM standard does not currently allow the blending of two or more approved types of SAF blending components (although distinct SAF blends themselves could be blended as they are reidentified as Jet A/A-1) for commercial flights, but studies have been carried out to show that multi-blends can be used without any concerns, for example, the United Airlines flight in December 2021 used a blend of HEFA-SPK and synthetic aromatics produced by the company Virent’s technology. A research and demonstration project was carried out under the German Mobility and Fuel Strategy and investigated the use of a multi-blend of SAF (HEFA-SPK and ATJ-SPK, alcohol-to-jet synthetic paraffinic kerosene) at Leipzig/Halle Airport and demonstrated that this could be feasible.

According to Csonka, a multi-blend mix could potentially be approved under ASTM within the next one-and-a-half to two years.

Why can’t two types of jet fuel be supplied at airports, one with aromatics and one without aromatics?While ASTM issues specifications for jet fuel, transport and quality assurance is carried out under the Joint Inspection Group (JIG) and Airlines for America (A4A) Standards which permits only one type of fuel (certified Jet A/A-1) at an airport, explained Csonka. Where SAF is used, blending must take place outside the airport and ASTM compliance demonstrated before the blended fuel may enter the airport to become part of the common fuel hydrant system. To supply two types of fuel at an airport will therefore require extensive changes to the entire fuel supply chain infrastructure and logistics. The industry does not want segregated fuel systems, insisted Csonka, as there is a potential for mistakes in refuelling where two different types of fuel are available.

Using 100% SAF will be essential in the future if the sector is to meet its long-term climate goals, he said. Aircraft manufacturers are anticipating this need and developing aircraft that can use 100% SAF, and demonstration flights have tried to show that this can be done without any technical concerns.

“Drop-in SAF is something our industry can adopt now to begin making inroads on our commitment to be net-zero emissions by 2050,” said Gaël Méheust, CEO of CFM International, whose LEAP-1B engines powered the United Airlines test flight.

Gurhan Andac, GE Aviation’s engineering leader for aviation fuels and additives, chairs a task force under ASTM to modify the relevant standards to allow certification of 100% drop-in SAF, for example, produced by the CHJ process. The possible adoption of non-drop-in SAF will be considered later, he said at a CAAFI webinar in October 2021.

While 100% SAF is not an immediate need, it is time to start the process to get ready from a technological, operational and standardisation perspective, said Andac.

Photo: In December, United Airlines flew the world’s first passenger flight with 100% SAF fuelling one engine

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

• Linkedin

RSB and Air bp announced their partnership in a sustainable aviation fuels (SAF) book and claim pilot earlier this year and, as part of the pilot, were joined by Microsoft, United Airlines and the Sustainable Aviation Buyers Alliance (SABA) to record the first transaction in the RSB book and claim register. With an approximate 80% reduction in lifecycle emissions in comparison with fossil jet fuel, 7,000 gallons (21 tonnes) of waste-based SAF were supplied by Air bp to United Airlines at UK airports. The sustainability attributes of the fuel were purchased by and credited to Microsoft, a founding company of SABA, which is managed by RMI and the Environmental Defense Fund, reports Susan van Dyk. The transaction was audited and verified by RSB, and the SAF credits were recorded in a book and claim register and retired by Microsoft after the fuel was used. Experience from the pilot scheme, together with broad stakeholder consultations, are contributing to the development of a book and claim manual by RSB, which will establish the rules for a robust, credible and transparent system that verifies the emission reductions achieved while avoiding double counting. Bryan Fisher, Managing Director of RMI’s Climate-Aligned Industries programme, said the book and claim system was “a gamechanger” for the SAF market.

“Virtual ownership of SAF’s environmental attributes can accelerate the technology by unlocking new payers and their resources, and that is why SABA has prioritised participation in this pilot,” he said.

A book and claim system allows the separation of the physical SAF from its sustainability attributes and permits a company to purchase and claim the emission reductions from SAF use regardless of the physical fuel supply location. The company purchasing the sustainability attributes does not use the physical fuel, but claims the SAF credits, which represents a volume of CO2 emissions prevented. In this case, Microsoft purchased 21 SAF credits, representing 21 tonnes of SAF, resulting in a reduction of 53 tonnes of CO2 (calculated on the basis that one tonne of fuel emits 3.16 tonnes of CO2 and an 80% lifecycle reduction). As the customer does not have to use the fuel, purchasing the SAF credits are not limited to fuel users such as airlines but can be done by any company who wants to reduce their Scope 3 emissions.

United and Microsoft have previously purchased SAF, but this was the first time SAF environmental attributes have been transferred using RSB’s book and claim system. RSB is developing the system with input from multiple stakeholders across the aviation value chain, including airlines, fuel producers, corporate customers and others. Feedback from stakeholders and learning experiences during the pilot scheme will help RSB to develop rules in a book and claim manual as a guide for a robust, credible and transparent system that can be used by any stakeholder.

Transactions under a book and claim system will be recorded in a registry, which SABA will be developing in collaboration with RSB and Clean Skies for Tomorrow (CST), said Kim Carnahan, SABA Secretariat Lead and Senior Director Net Zero Fuels at ENGIE Impact. This universal electronic ledger or registry will be compatible with the RSB book and claim system, which will detail the rules for how credits can be booked and claimed. Carnahan further explained that the book and claim manual would allow environmental attributes from any SAF certified by RSB and ISCC to be claimed under the system.

The greatest concern with book and claim transactions is the risk of double counting occurring when SAF emissions may be counted more than once towards a climate mitigation effort. Pedro Piris-Cabezas, Director of Sustainable International Transport and Lead Senior Economist at the Environmental Defense Fund (EDF) discussed the risk at the recent RSB Annual Conference. Avoiding double counting starts with a robust book and claim system from an ICAO-approved Sustainability Certification Scheme such as RSB, he explained, with transactions recorded in a registry.

While there is a risk of double counting between air carriers and corporations, the accounting of emissions reductions by countries in their national inventory reports also poses a risk for double counting. Piris-Cabezas recommends the fuel supplier must secure a commitment from the host country to report the SAF as international bunker fuel in its national inventory reports to ensure that emissions reductions are not claimed twice. Under UNFCCC rules, international bunker fuels (aviation and shipping) are reported separately and are a source of emissions not addressed under countries’ Nationally Determined Contributions (NDCs). Piris-Cabezas also highlighted the potential impact of a country’s policy environment and incentive schemes for SAF purchase under a book and claim system as a fuel producer would not be able to claim emission credits for the same SAF. SABA is providing guidance on how to simultaneously address UK policy requirements (as the SAF for the pilot was supplied and used in the UK) and recognise the emissions benefits for voluntary corporate purchases.

According to Elizabeth Willmott, Carbon Program Manager at Microsoft, the pilot offers the opportunity to ensure transparency and credibility for environmental claims for SAF purchases. RSB’s new Executive Director, Elena Schmidt, welcomed the participation of Microsoft and United in the RSB pilot project, which she said “took the pilot into the real world”. Microsoft’s commitment to sourcing RSB-certified fuel is an example of how companies can use their buying power to drive positive impacts, even outside their direct supply chains, she added.

Kelley Kizzier, EDF’s VP Global Climate, said SABA was looking forward to applying the lessons learned from the pilot to the development of an electronic book and claim registry, alongside RSB, so that more air transport customers could benefit.

At the recent COP26 climate talks in Glasgow, SABA announced the addition of an Aviators group to their membership, formed by Amazon Air, Alaska Airlines, JetBlue and United Airlines. SABA said the new group would help “send even stronger demand signal to drive greater SAF production, price reduction and technological innovation”. EDF and RMI also unveiled SABA’s formal membership structure at the COP26 event, opening membership opportunities to airlines, companies and non-profit organisations.

SABA was launched by RMI and EDF in April 2021 with founding members Boeing, Boston Consulting Group, Deloitte, JPMorgan Chase, Microsoft, Netflix, Bank of America, McKinsey & Company, and Salesforce, with Meta (formerly Facebook) later joining as a founding member.

Photo: SABA’s Kim Carnahan presents the initiative during COP26. The event included a keynote from US Transportation Secretary Pete Buttigieg and a panel session with representatives from United Airlines, Alaska Air, Amazon, McKinsey & Company and Deloitte. A YouTube video recording is available here

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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Bio-based feedstock availability for SAF will likely only be sufficient to supply 50% of the SAF required to meet IATA’s net zero carbon by 2050 target, concludes an ICF report prepared for the second edition of the cross-industry Air Transport Action Group’s Waypoint 2050 report. The other 50% of projected fuel demand by 2050 will have to come from Power-to-Liquid (PtL) technology, finds ICF. Although HEFA SAF is fully commercial and currently supplies most SAF, the availability of sustainable feedstocks will limit its overall contribution to SAF volumes to less than 10% by 2050. The Waypoint 2050 report estimates that 330-445 million tonnes of SAF, alongside technological and operational improvements, will be required for the global aviation industry to achieve net zero carbon emissions by 2050, reports Susan van Dyk. Speaking at the recent 2021 ATAG Global Sustainable Aviation Forum, Kata Cserep, ICF Global Managing Director of Aviation, said the ICF study set out to answer three simple questions: is there enough feedstock to produce the SAF required, how much will it cost, and where will it come from?

The size of the challenge is significant, said Cserep, and about 400 million tonnes (around 500 billion litres) of SAF will be required by 2050, representing an increase of 8000% from last year’s SAF production. But the ICF report shows that this can be done, she stated, mapping the pathway to achieve the projected quantities of SAF needed by 2050, including feedstock availability, number of production facilities and the total investment cost that will be required.

The projected volume of SAF by 2050 will depend on the extent that technologies such as hydrogen and electric aircraft can deliver emission reductions in the sector. Between 5,000 and 7,000 SAF production facilities will be required to deliver these volumes at a total infrastructure investment cost of $1-1.5 trillion dollars over 30 years. Put into perspective, explained Cserep, the annual investment cost will only be about 6% of historical annual investment in the oil and gas sector.

The regional distribution of feedstocks and SAF production forms a key part of the report as the nature of the feedstock dictates that production will take place closer to the sources of feedstock, making SAF production a more distributed energy source through all regions, unlike oil and gas which is highly concentrated in a few countries. The benefits of SAF also lie in its ability to create jobs, with 23 people employed today for every $1 million invested in bioenergy. SAF production at these levels will be able to sustain up to 14 million jobs in the collection and processing of the feedstock, with 90% of the jobs across the supply chain, said Cserep.

Feedstock availability is a prerequisite for SAF production. The WEF-CST report published earlier this year also analysed feedstock availability for SAF production, but did not take competing uses of feedstocks for bioenergy and other applications into account, according to Alastair Blanshard, Senior Manager and Sustainable Aviation Lead at ICF and the lead author on the ICF study.

As a result, the WEF-CST analysis concluded feedstock availability was not a limitation for SAF production and that enough biogenic feedstocks were available worldwide to produce about 500 million tonnes (621 billion litres) of SAF by 2050. In contrast, the ICF study built on bioenergy feedstock analysis by the IEA and Energy Transitions Commission to calculate that biogenic feedstocks will only be able to deliver about half of SAF requirements by 2050. Feedstocks assessed in the ICF report were limited based on sustainability and excluded crops such as vegetable oils, corn, sugarcane and others in keeping with the sector’s sustainability goals, explained Blanchard.

Under the most aggressive SAF deployment scenario, SAF can be delivered in three main phases (see graph below), Cserep told the ATAG Forum. The HEFA (Hydroprocessed Esters and Fatty Acids) process, which uses waste lipids, is the only commercial pathway today and is in a rapid scale-up phase. However, HEFA will become feedstock constrained, limiting it to less than 10% of total SAF production by 2050. The next two decades will be dominated by advanced feedstocks, such as municipal solid waste (MSW) and forest residues, and using technologies such as alcohol-to-jet (AtJ), Fischer-Tropsch (FT) and others. PtL technology is expected to start producing significant volumes after 2035. Although this technology does not require biogenic feedstocks, Blanshard estimates it will require eight TWh of renewable electricity to deliver projected 2050 volumes, which alongside electricity to charge battery and hybrid aircraft, is likely to be just under 10% of all renewable electricity.

The high cost of SAF is considered a significant obstacle for airlines. “The perception of cost is always the first stumbling block,” commented Blanshard. However, the ICF analysis demonstrates SAF production prices will decrease in all feedstock and technology combinations, driven by technology advances, economies of scale and increased carbon efficiency. When including the value of carbon, the fuel price is expected to be between $760-$900 per tonne of SAF by 2050, well within the historical range of fossil fuel.

The report did not address the policies required to achieve this level of SAF production, and analysis was based on a simplified policy environment with a global price on carbon, said Blanshard. Most thinking today is unfortunately based on volumes of fuel, rather than percentage carbon abated, he stated.

Significant policy developments have been taking place recently, including proposals for SAF blending mandates in Europe and the UK, and a SAF blenders tax credit in the USA. The proposed EU mandate is a volumetric mandate, whereas the UK mandate proposal prioritises carbon emissions savings through a GHG emissions scheme issuing credits proportional to the kilograms of CO2e saved. The US blenders tax credit and the California Low Carbon Fuel Standard similarly rewards greater carbon intensity reductions, spurring many companies in the US to target net zero SAF and even negative carbon intensity through measures such renewable electricity, green hydrogen and carbon capture and storage.

While the ICF report capped carbon intensity at a 100% reduction, negative carbon intensity SAF should be able to reduce the volumes required by 2050.

Top image: Shell

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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Sixty companies in the World Economic Forum’s Clean Skies for Tomorrow Coalition have signed a commitment to accelerate the supply and use of sustainable aviation fuel to reach 10% of global jet aviation fuel supply by 2030. Signatories represent a global group of airlines, airports and fuel suppliers, as well as non-aviation companies that rely on corporate air travel for their business operations and which recognise decarbonising aviation lies with all that depend on it. With the current commercial production of SAF at less than 0.1%, significant scale-up must take place to meet this target, writes Susan van Dyk. The problem is the high cost of SAF, and producers and carriers alone are unable to carry the burden, said Lauren Uppink Calderwood, Head of Aviation, Travel and Tourism Industries at WEF. The commitment represents support for the UN High Level Climate Champions’ 2030 Breakthrough Outcome for aviation, one of over 30 sectoral near-term targets deemed critical to halving emissions by 2030 and delivering the promise of the Paris Agreement, said WEF.

Development of a new generation of hybrid-electric and hydrogen-powered aircraft could help reach the next efficiency level, but deployment at scale would take time and initially focus on the short to medium range, while SAF is the most promising option to significantly reduce the aviation industry’s carbon emissions in the near term, and for long-haul flying, even beyond 2050, said the coalition’s members in a statement.

SAF is critical, Jonathon Counsell, Group Head of Sustainability at International Airlines Group (IAG), told a press conference to announce the commitment alongside Heathrow Airport CEO John Holland-Kaye and Shell’s President of Global Aviation, Anna Mascolo, held during WEF’s Sustainable Development Impact Summit. The three organisations are steering committee members of the Clean Skies for Tomorrow (CST) initiative.

They acknowledged the 10% target was challenging, but said scale-up could be achieved with the right policies. “Yes, it’s ambitious – we are talking 30 million tonnes by 2030 – but with the right policies in place we can deliver that,” indicated Counsell. “This will get us on the trajectory to deliver a truly sustainable industry by 2050.”

Said Mascolo: “We have real momentum now to make a difference. Shell is committed to supplying 10% SAF by 2030 on all its sales of jet fuel and is making investments into SAF facilities. It has committed to supplying 2 million tonnes of SAF per year by 2025.”

According to Holland-Kaye, the 10% target “is only a milestone and will probably improve”. He added: “The critical thing is that we make progress really quickly. If we don’t break the back of this in the next decade, we will have no chance of reaching net zero by 2050. This is the decade for transforming the energy supply chain.”

They highlighted the role of policy in order to reach the target. “Policy is absolutely the enabler to get these plants built and must address three aspects,” said Counsell. “It must create a demand signal, create price stability by using a mechanism such as contracts-for-difference and reduce the capital risk through, for example, loan guarantees. We welcome the progress that we have seen in the last few months in the US, EU and UK but we will need additional policy to attract the investment to get these plants built. The proposed US blenders tax credit is probably in the lead for effectiveness in encouraging investment.”

Holland-Kaye believes the right policies can unlock billions of dollars in financing. “Banks have told me SAF is one of the most investible sectors they have seen. It’s very simple – all you need is the mandate and the price stability mechanism and that will unlock the financing to make this transformation happen.” He also called for a greater commitment at ICAO’s Assembly in 2022 to target net-zero emissions by 2050.

“Achieving our ambition will require commitment, innovation and cross-industry collaboration from a wide range of stakeholders,” said Uppink Calderwood. “We are calling on governments, international organisations and others to work with us to take important steps forward through new policies, targeted investments and regulations that create a level playing field while incentivising transformation. Together we can take a giant leap towards the decarbonised, sustainable and affordable aviation industry needed for our global future.”

One of the signatories to the 10% by 2030 pledge, and a member of the CST steering committee, is Indian carrier SpiceJet. “Our announcement emphasises our commitment to the planet and prosperity,” said CEO Ajay Singh. “Upscaling SAF with a global approach will boost India’s economy. Accelerating the SAF industry with a global approach will bring opportunities for economic growth and transformation in India.”

Photo (Boeing): Indian airline SpiceJet is one of the signatories to the 10% by 2030 SAF commitment

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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United Airlines and Honeywell have announced a joint multimillion-dollar investment in Alder Fuels, a new cleantech venture headed by Bryan Sherbacow, founder of AltAir Fuels (now World Energy), the world’s first commercial sustainable aviation fuel (SAF) producer. United has also agreed to purchase 1.5 billion gallons of SAF over 20 years, the largest publicly announced SAF agreement to date, reports Susan van Dyk. The airline says the purchase is one-and-a-half times the size of the rest of the world’s airlines’ publicly announced SAF commitments combined. Alder claims it will be pioneering first-of-its-kind technologies to produce SAF at scale by converting abundant biomass, such as forest and crop waste, into sustainable low-carbon, drop-in replacement crude oil that can be used to produce aviation fuel. When coupled with Honeywell’s Ecofining process, the start-up says the technologies could have the ability to produce a carbon-negative fuel across the full lifecycle at a specification with today’s jet fuel.

United has pledged to reduce 100% of its greenhouse gas emissions by 2050 through large investments in SAF production, carbon capture and sequestration, and electric aircraft. It was the first airline to use SAF in regular operations on a continuous basis. Since then, the carrier has purchased more SAF than any other airline and now with this agreement has more than 70% of the airline industry’s publicly announced SAF commitments.

“Since announcing our 100% green commitment in 2020, United has stayed focused on decarbonising without relying on the use of traditional carbon offsets,” said United CEO Scott Kirby. “Part of that commitment means increasing SAF usage and availability since it’s the fastest way to reduce emissions across our fleet. However, to scale SAF as quickly as necessary, we need to look beyond existing solutions and invest in research and development for new pathways like the one Alder is developing.”

United made headlines in 2015 by investing $30 million in Fulcrum Bioenergy, a developer of SAF production from municipal solid waste, and signing, at the time, the largest offtake agreement for SAF. In 2020, United became the first airline to announce a commitment to invest in carbon capture and sequestration and has since followed with investments in electric vertical takeoff and landing aircraft and 19-seat electric aircraft that have the potential to fly customers up to 250 miles before the decade’s end.

To advance its goals, in June 2021, United formed United Airlines Ventures, a venture fund that focuses on startups, upcoming technologies and sustainability concepts that will complement United’s goal of net zero emissions by 2050. The joint investment with Honeywell in Alder Fuels is the latest from United Airlines Ventures and continues what the the company describes as a commitment to achieve carbon neutrality by 2050 by tackling emissions at their source and continuing and accelerating development and investment in clean technologies.

Back in 2008, Honeywell’s UOP process technology played a pioneering role in the first-ever commercial airliner to fly using biofuel from second generation, renewable feedstocks. Made from the oil of jatropha plants, a 50/50 blend was used to power an engine of an Air New Zealand Boeing 747-400 during a test flight.

Honeywell will use its Ecofining process to partner with Alder to commercialise its technology, which was jointly developed with Eni. UOP currently has licensed 20 Ecofining units in nine countries around the world, processing 12 different types of renewable feedstocks.

“Our work with United and Alder on this new technology will help transform the industry and support the growth of a zero-carbon economy,” said Darius Adamczyk, Honeywell’s CEO. 

Currently, all commercial SAF volumes are produced from fats, oils and greases, a costly feedstock with limited availability to produce SAF at required scale. Shifting to other types of low-cost, low-carbon feedstocks that are available in significant quantities is considered critical to large-scale SAF volumes.

Little information, other than that it is a pyrolysis-type technology, is currently available on the specific technology that Alder Fuels will use. This type of technology produces a liquid intermediate that can be further upgraded into finished fuels such as SAF. It is in the upgrading process that Honeywell’s Ecofining technology and their advanced expertise in hydrotreating will become crucial to produce drop-in fuels such as SAF. Alder Fuels also envisages the suitability of the ‘green’ crude oil to be converted by the global refinery industry with existing equipment and infrastructure. Commercialisation is expected by 2025.

The new company’s President and CEO, Bryan Sherbacow, is a veteran in the industry with over 15 years’ experience in the development of low carbon fuels. He was responsible for the first commercialisation of SAF production as co-founder of AltAir Fuels in 2009, the world’s first refinery designed to produce SAF. Commissioned in January 2016, AltAir Paramount converted a petroleum refinery to the production of SAF, renewable diesel, naphtha and propane. Sherbacow negotiated the aviation industry’s first commercial contracts for SAF with United Airlines, KLM and World Fuel Services. Additionally, he executed the first contract for operational use of renewable diesel fuel by the US Navy. Subsequent contracts include with Gulfstream, Boeing, UPS and Amazon. In March 2018, he facilitated the acquisition by World Energy of AltAir and the Paramount refinery assets. Formerly Chief Commercial Officer of World Energy, Sherbacow will continue as senior advisor to the CEO of World Energy, according to his LinkedIn profile.

“Aviation poses one of the greatest technology challenges for addressing climate change and SAF has demonstrated the greatest potential. However, there is insufficient raw material to meet demand,” he said. “Alder’s technology revolutionises SAF production by enabling use of widely available, low-cost and low-carbon feedstock. The industry is now a major step closer to using 100% SAF with our drop-in fuel that accelerates the global transition to a zero-carbon economy.”

According to the US Department of Energy (DOE), US forestry residues and agricultural residues alone could provide enough biomass energy to generate more than 17 billion gallons of jet fuel and displace 75% of US aviation fuel consumption. If the nation was to broadly adopt regenerative agricultural practices, which capture more carbon in healthier soil compared to traditional methods, the US could generate an additional seven billion gallons of SAF, which would completely replace its current fossil jet fuel consumption. Alder’s technology and demand for its fuel from the aviation industry could create a large new market for biomass from regenerative practices.

Photo: United Airlines

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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Sustainability standards body RSB has entered a strategic collaboration with Air bp to launch a pilot book and claim system that allows the jet fuel supplier’s customers to purchase sustainable aviation fuel (SAF) without a physical connection with the supply site. Book and claim is particularly relevant to the general and business aviation market where fuel volumes are smaller and typically purchased over a wide number of locations, while current SAF volumes and existing supply points remain limited. The new programme will enable Air bp to deliver SAF into the supply chain at one airport location and ‘book’ the carbon reduction associated with it into a registry. Then the customer at another location can ‘claim’ those carbon reductions by purchasing their traditional jet fuel along with the benefit of the lifecycle carbon reductions that have been registered in that registry, reports Susan van Dyk. The system can be used with jet fuel purchases in France, Germany, Spain, Switzerland, the UK and the US, subject to availability, with more locations possible in the future. According to RSB, the pilot scheme and concurrent stakeholder consultations to finalise a book and claim manual will ensure SAF transactions using the system are credible, traceable and avoid double counting. Certification will guarantee the net environmental effect is the same, no matter where SAF is purchased and used.

“Book and claim will be crucial,” said Elena Schmidt, interim Executive Director of the Roundtable on Sustainable Biomaterials (RSB), and “can help to bring the value of SAF to customers who would like to buy it or need the benefits from flying with SAF.”

A lack of availability, which is further limited to only a few locations, places SAF out of reach of many potential customers, explained Schmidt, and is a challenge to the expanded deployment of SAF. If SAF had to be physically available at every airport, additional costs would also be incurred in transportation, and associated emissions would increase. A book and claim system provides a solution to the logistical challenge of bringing SAF to market to allow customers to purchase SAF while decoupling environmental benefits from the physical product, which can be transferred separately via a dedicated registry. The principles of the system are illustrated below.

The pilot phase will run from Q3 2021 to Q1 2022 before the market launch of the certification system in Q2 2022 that will open it to wider market adoption. The first SAF transactions and pilot certificates will be issued during the pilot phase, and specifications for the post-pilot registry will be developed. In tandem, stakeholder consultations will take place and key issues will be addressed, including establishment of rules to prevent double-counting, recognition by voluntary GHG disclosure programmes such as the Science Based Targets Initiative (SBTi), dealing with data confidentiality versus public availability, and alignment with other initiatives and recognition by other programmes. Lessons learnt and stakeholder comments will be integrated into the final certification requirements for the RSB Book & Claim Manual. Key mid-point results of the project will be presented during the 2021 RSB Annual Conference in November.

Air bp will be the first fuel supplier to register and make trades using the RSB book and claim solution. David Mosley from Air bp explained at a RSB seminar held in August that the company had received multiple requests for SAF from customers all over the world. He said book and claim will widen access of SAF to customers who are not located near current SAF production and several customers had requested a book and claim system, which had prompted the collaboration with RSB. “We hope this pilot will increase the appetite for SAF in the industry,” he added.

The minimum volume of book and claim SAF that can be purchased is 5,000USG/19,000 L/ 19m³/ 15MT. As well as giving a wider range of customers access to the benefits of SAF, book and claim will help Air bp to understand SAF demand. In the meantime, Air bp will continue to develop physical SAF supply chains based on demand.

The RSB book and claim is a chain of custody model in which the administrative record flow is not connected to the physical flow of material or product throughout the supply chain. The system includes a registry that guarantees full traceability and mitigates the risk of double counting. SAF suppliers, holding a registry account, will be able to record and trade SAF volumes in the registry, which will issue retirement certificates for airlines and corporate customers.

The system will allow aircraft operators to use the physical fuel in one location while claiming the environmental benefits in a different location to reduce their emissions. Alternatively, it enables the attribution of GHG emission reductions through SAF use to corporations to reduce their Scope 3 emissions.

Integration and alignment of the RSB system with other systems such as the World Economic Forum’s Clean Skies for Tomorrow (CST) SAF Certificate (SAFc) system for corporate travellers (see article) is a goal, and exploring how the RSB system will function under the European Commission’s recently released ReFuelEU proposal, which does not currently include a book and claim system, will be clarified in the near future.

The WEF CST SAFc framework is based on the same principle of separating SAF from its sustainability characteristics but has a different focus than the RSB book and claim system. It is an accounting tool that will allow SAF emissions reductions to be claimed by the traveller if they cover the higher cost of the fuel. It works within standard book and claim processes, allowing the actual SAF to be delivered to the airport nearest its production plant.

A rigorous SAF certificate system will be an essential component of other initiatives such as the Sustainable Aviation Buyers Alliance (SABA), comprised of corporations with significant air travel and freight footprints (i.e. Scope 3 emissions) who want to achieve net zero emissions (see article).

A question arises on how these different systems will be integrated to avoid situations like double counting and whether a joint registry should be established for all these systems. According to RSB’s Schmidt, alignment between initiatives is important and will need to be addressed. RSB believes it can contribute to the development process of other initiatives such as SABA since it has the proven ability to develop robust auditing frameworks and the rulebook on book and claim systems using its multi-stakeholder platform. RSB says it can also provide information for developing a credible registry and retirement certificates while also ensuring additional environmental benefits through the use of such credits and avoiding double counting.

The pilot scheme between RSB and Air bp will provide lessons learned to feed into other initiatives, said Schmidt. However, she pointed out, the RSB book and claim and the SAFc systems have different aspirations, and the specific alignment of the systems must be clarified. There are a lot of details that still need to be figured out, she added.

Another area of uncertainty is how the RSB book and claim system will function within the EU as the proposed ReFuelEU Aviation regulation does not currently include provision for such a system. The ReFuelEU Aviation proposal, released as part of the European Commission’s ‘Fit for 55’ climate package, includes a mandate on fuel suppliers to include SAF in aviation fuel supplied at EU airports (see article). The proposed regulation indicates explicitly a book and claim system is not included at this stage, although it is not excluded as a future possibility, provided that it be governed by robust rules ensuring the environmental integrity of the system. While SAF would initially not need to be supplied at every airport, fuel suppliers must provide at least a 2% blend of SAF at every airport – a fraction of the 20% proposed mandate by this date – from 2030-2035. The balance of the mandate can be met by supplying a higher share of SAF at select airports. According to Schmidt, this indicates that some type of certificate trading is implied and that the RSB book and claim system can provide a solution.

During its August seminar, RSB also announced the establishment of the EcoTransport Programme, a sustainability certification that allows transport companies to get a credible third-party RSB certification for their sourcing of fuels that are in compliance with the strong sustainability criteria of the RSB. For example, explained Schmidt, an airline could sell a branded ‘ecofly’ ticket to customers as opposed to a regular ticket. This product would carry RSB certification and allow the use of the RSB trademark. While book and claim allows SAF certified by other sustainability schemes, the EcoTransport certification will comply with stricter sustainability criteria. It goes beyond GHG reductions to provide assurance on key customer concerns around deforestation, food security, labour rights and supply chains, backed by RSB standards. The programme will not be limited to the aviation sector but could also be used by cargo shipping, for example.

Top photo and infographic: Air bp

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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Released as part of the European Commission’s ‘Fit for 55’ climate package, the long-anticipated ReFuelEU Aviation proposal confirms imposing a mandate on fuel suppliers to include sustainable aviation fuel (SAF) in aviation fuel supplied at EU airports. The obligation would commence from 2025 at 2% SAF, gradually increasing to 63% in 2050. The proposal also includes a sub-obligation of 0.7% for e-kerosene from 2030. To avoid fuel tankering, an obligation is also placed on aircraft operators to uplift fuel from EU airports. EU airports are further required to supply the necessary infrastructure for storage and blending of SAF to allow fuel suppliers and airlines to meet their obligations. While the proposal has found general support amongst stakeholders, reports Susan van Dyk, IATA and the World Economic Forum’s Clean Skies to Tomorrow (CST) coalition argue a mandate, while positive, will not be sufficient to support SAF development and that production incentives should also be introduced.

The proposed regulation aims to create a level playing field through EU-wide harmonised rules for SAF and avoid disparate national regulations. Its main elements are directed at three different sets of stakeholders: aviation fuel suppliers, airlines and airports.

The central component of the Regulation is a mandate on fuel suppliers to blend a minimum volume percentage of SAF in the aviation fuel supply, with a separate minimum for e-kerosene (the aviation category of e-fuels) from 2030:

• 2% from 2025;
• 5% from 2030, with a minimum of 0.7% e-kerosene;
• 20% from 2035, with a minimum of 5% e-kerosene;
• 32% from 2040, with a minimum of 8% e-kerosene;
• 38% by 2045; with a minimum of 11% e-kerosene; and
• 63% by 2050, with a minimum of 28% e-kerosene.

Two aspects of the mandate are notable. Firstly, the obligation is placed on the fuel suppliers rather than the airlines and, consequently, all flights departing from EU airports will be covered. Secondly, the mandate is based on volume rather than the potential carbon intensity reduction of the SAF.

According to the proposal, e-fuels have the highest potential for decarbonisation of all fuel technologies considered under this initiative and therefore a dedicated sub-obligation is provided to push e-fuel introduction into the market. As explained in the proposal, the emergence of e-fuels on the market in sizeable volumes by 2030 is unlikely in the absence of dedicated policy support due to their high cost. The dedicated sub-mandate is expected to partly de-risk investments in e-fuels and promote scale-up of production capacity.

In addition to the obligation on fuel suppliers, a ‘refuelling obligation’ is placed on airlines, providing that “the yearly quantity of aviation fuel uplifted by a given aircraft operator at a given Union airport shall be at least 90% of the yearly aviation fuel required.” This is designed to address fuel tankering practices, where aircraft operators uplift more aviation fuel than necessary at a given airport with the aim to avoid refuelling partially or fully at a destination airport where aviation fuel is more expensive. This practice can lead to increased emissions (carbon leakage) due to higher fuel burn and undermines fair competition in the market. As the inclusion of SAF is expected to increase aviation fuel costs, the proposal anticipates fuel tankering may increase. Therefore, the regulation requires that the amount of fuel uplifted by an aircraft should be commensurate with the amount of fuel necessary to operate the flights departing from that airport. Monitoring of this provision will be carried out through reporting obligations on airlines.

Finally, a requirement is placed on EU airports to provide the infrastructure for the delivery, storage and uplifting of SAF according to the obligation.

The proposal envisages fuel suppliers, airports and aircraft operators may not have the technology and logistical infrastructure available to meet mandating requirements at every airport. Therefore the regulation would provide for flexibility in this regard within the first five years of its application. Up to 2030, fuel suppliers would not be required to distribute mandated SAF blends at every airport but can meet their obligation by supplying a higher share of SAF at certain airports, provided that the fuel supplier complies with the mandate based on their average annual fuel supplied. From 2030-2035, fuel suppliers must supply at least a 2% blend of SAF at every airport.

The proposed regulation does not include provision for a book-and-claim system, although it is not excluded as a future possibility, provided that it be governed by robust rules ensuring the environmental integrity of the system.

Eligible SAFs under the regulation are advanced biofuels and e-fuels, and feed and food crop-based biofuels are not included. However, SAF produced from waste lipids will be eligible in order to launch the market and allow for emission reductions in the short term. Sustainability criteria established in the Renewable Energy Directive (RED II) will be used to determine eligibility of SAFs.

The remainder of the proposal deals with reporting obligations and penalties for non-compliance with the regulation.

It would only apply to commercial flights in civil aviation, and exclude military aircraft and aircraft engaged in operations for humanitarian, search, rescue and disaster relief of medical purposes, as well as customs, police and fire-fighting operations. Further parties excluded would be aircraft operators and airports that operate below a minimum threshold. A threshold of yearly passenger air traffic and freight traffic would be defined, and airports below this threshold would be outside the scope. Similarly, aircraft operators with a very low number of departures from airports in the EU would also be exempt below a certain threshold. The overall aim is that at least 95% of total traffic departing from airports in the EU would be covered.

Reaction

The ReFuelEU proposal has received general support from industry representatives. However, IATA said although the mandate may contribute to making SAF more affordable and widely available in Europe, this would only be the case under certain conditions and says the mandate should be accompanied by policy measures to ensure a competitive market and appropriate production incentives. It also recommends the mandate is targeted at locations which have substantial airline operations and close proximity to SAF refineries.

IATA warned, however: “The mandated use of SAF must not allow energy companies to engage in uncompetitive practices with the resulting high costs being borne by airlines and passengers.”

Airports body ACI Europe said it was a long-time supporter of an EU-wide blending mandate that required fuel suppliers to include SAF into the overall aircraft fuel supply, pointing out the measure was included in the European aviation sector’s Destination 2050 decarbonisation roadmap launched in February. The association emphasised Europe’s airports did not usually own or operate fuel infrastructure but allowed fuel suppliers to develop and operate such infrastructure on their premises, which was fully compatible with the use of SAF.

“The ReFuelEU Aviation initiative lays the foundation for a strong partnership between policymakers and industry to deliver SAF as a key enabler of the European Green Deal objective to reduce transport-related emissions,” commented Athar Husain Khan, Secretary-General of the European Business Aviation Association (EBAA) in a joint statement with the General Aviation Manufacturers Association.

On the eve of the release of the Commission’s proposal, the World Economic Forum’s Clean Skies for Tomorrow (CST) coalition published a report that seeks to address key consideration regarding the feasibility of a SAF blending mandate. Signatories to the report, Guidelines for a Sustainable Aviation Fuel Blending Mandate in Europe, include Airbus, Boeing, bp, Copenhagen Airport, Deutsche Post DHL Group, Groupe ADP, Heathrow Airport, International Airlines Group, KLM, Kuehne+Nagel, LanzaJet, LanzaTech, Neste, Norsk e-Fuel, Rolls-Royce, Royal Dutch Shell, Royal Schiphol Group, SkyNRG, Sunfire, Total Energies and Velocys.

While CST says the introduction of the mandate is essential to the deployment of SAF, it is considered insufficient to unlock investments in the SAF supply chain. The CST report states that reaching the desired levels of SAF production in Europe will also require significant public financial support to de-risk private investments in the SAF supply chain and to bridge the cost differential between SAF and conventional jet fuel for off-takers.

In parallel, CST also believes airlines will need financial support mechanisms to bridge the cost differential between SAF and conventional jet fuel and to mitigate the risks of competitive distortion and fuel tankering that could be caused by the mandate. CST supports a volumetric mandate as it would provide greater certainty than a GHG intensity reduction target but believes the volumetric mandate should be combined with minimum threshold requirements for GHG reductions based on life cycle assessments that should be gradually increased over time.

Although the proposed regulation provides for a sub-target for e-kerosene, CST indicates sub-targets should also be implemented for other novel technology pathways at low technology readiness levels. In addition, CST calls for aviation to be given priority access to sustainable biomass due to the lack of cost-effective alternative decarbonisation options. Appropriate policies should also be in place to drive higher production/collection of sustainable biomass, in particular wastes and residues, to meet growing demand and prevent any feedstock availability issues.

While supporting the overall proposal, Andrew Murphy from campaign group Transport and Environment said the sub-target for e-kerosene “should be set even higher to really drive down emissions from flying.”

Photo: Neste and Air BP

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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Although using CO2 from direct air capture (DAC) is important for e-fuels production in a net zero energy system, it is currently too expensive and could place a very high cost and technology risk burden on the e-fuels sector, concludes an E4Tech study commissioned by Transport & Environment (T&E) and presented in a webinar hosted by the Brussels-based NGO. The study recommends point source CO2 capture – capturing CO2 from industrial sources such as fossil or biomass power plants or cement production – be used in the near term for e-fuel production based on rigorous GHG assessment, while policies are put in place to support the commercialisation of DAC, reports Susan van Dyk. E-fuels are produced from CO2 and hydrogen, and the CO2 can be derived from direct air capture or industrial point sources. T&E estimates demand for e-kerosene (the subcategory of e-fuels suitable for aviation) for flights originating in Europe could grow to nearly 40 Mt in 2050 and completely replace fossil kerosene. It believes sourcing CO2 through DAC is “better than capturing it from industrial sources; a technique which, while cheaper, has the unintended effect of encouraging industries to continue to rely on fossil fuels.”

CO2 from industrial point sources can result in an overall reduction in emissions for the final e-fuel, but when derived through DAC it can potentially deliver carbon neutral e-fuels. Keith Whiriskey, Deputy Director at the Bellona Foundation, provided a perspective on CO2 accounting in DAC at the webinar, emphasising the climate benefits of e-fuels rely on both the source of CO2 and the source of hydrogen. From a carbon perspective, Whiriskey says DAC for e-fuel production is climate neutral. In contrast, CO2 from a point source for e-fuel production, where the CO2 originates from a fossil source, releases that CO2 back into the atmosphere when the e-fuel is combusted. While there is a reduction in CO2 emissions overall, only one of the parties can claim the reduction. From a carbon accounting perspective, the CO2 provider can claim an emission reduction based on carbon capture, but the e-fuel producer cannot simultaneously claim an emission reduction as this will amount to double counting. As Whiriskey explains, “one party can be low carbon – the other party must be full carbon.”

The source of hydrogen is equally important, he says. Unless hydrogen is derived from 100% renewable electricity, emissions from e-fuel production can increase. Whereas hydrogen from wind electricity produces around 0.5 tCO2/tH2, hydrogen from coal-derived electricity produces approximately 35 tCO2/tH2. Besides sourcing the hydrogen from renewable electricity, e-fuel production must be based on new or additional renewable electricity. Whiriskey points out that e-fuel production is an inefficient use of electricity and only offers low emission reductions per unit of renewable electricity used. As a climate measure, the use of renewable electricity for electric vehicles offers six times greater emission reductions, he says.

DAC compared to point source capture of CO2 is therefore not the only factor in determining the climate benefits of e-fuels. DAC can offer much greater climate benefits than point source CO2, and T&E therefore argues it should be considered the preferred source of CO2. However, compared with point source capture of CO2, DAC comes at a higher cost and has greater energy requirements. DAC is also at an early stage of development, explains Jo Howes, Principal Consultant at E4Tech, which was recently acquired by global sustainability advisory firm ERM. The study commissioned by T&E assessed whether, when and how DAC could be scaled up to meet the demands of an e-kerosene industry at the scale needed to decarbonise European aviation.

It determined the current costs of DAC are reported at €100-500/tCO2 ($120-600/tCO2) compared to point source CO2 capture costs of €70-150/tCO2. All DAC companies project much lower costs in the long term, ranging from €40-170/tCO2, but “only some of these are backed up by published data,” Howes told the webinar. At €503/tCO2, e-kerosene is calculated to be €4019/t compared to a current average jet fuel price of around €550/t. While reducing the cost of CO2 to €100/tCO2 can potentially reduce the cost of e-kerosene to €2405/t, this is still more than four times the current price of jet fuel.

Howes believes that requiring DAC for e-fuels would place a very high cost and technology risk burden on the emerging e-fuels sector and recommends point source CO2 should be allowed in the near term but with rigorous project-level GHG assessment. The study identifies the conditions to enable commercialisation of DAC as additional supply-side policy support, such as funding for research, development and demonstration (RD&D) and project investment, along with future mandates for DAC use within fuels policy or as part of broader GHG removal policy.

There are no fundamental limits on scaling up of DAC for future e-fuel production, said Howes. Many companies are currently pursuing DAC commercialisation, and large-scale projects are being developed, with the first 1 Mt/year facilities expected by 2023/2024. The speed of roll-out will depend on the existence of viable markets for CO2 capture, which is not limited to e-fuels production and includes the use of CO2 in industry and carbon capture and storage.

To produce T&E’s estimated annual 40 Mt of European e-kerosene by 2050, it would require 365 Mt/year of CO2 to be captured, finds the study. Canada-based DAC pioneer Carbon Engineering, in partnership with 1PointFive, is expecting to begin construction on a first commercial-scale plant in the United States that will capture up to 1 Mt/year of CO2 that will be stored permanently underground. The company is also piloting its ‘Air to fuels’ technology that is producing around 1 barrel of fuel per day. Swiss DAC company Climeworks, which has 14 plants currently either commissioned or in operation across Europe, is constructing its geothermal-powered Orca direct air capture and CO2 underground storage plant in Iceland. It will capture 4,000 tonnes of CO2 per year, which the company says will make it the world’s biggest climate-positive facility to date. By 2024, Climeworks expects to increase production across its facilities to 40,000 tCO2/year and then to 400,000 tCO2/year globally by 2027.

Based on the conclusions from the report, T&E has made some key recommendations of its own to policymakers. For the upcoming ReFuelEU Aviation initiative about to be announced, T&E recommends that DAC CO2 be required from the start of e-kerosene production, with any project receiving public support requiring a minimum share of 30% DAC, increasing over time to 100%. T&E believes the ReFuelEU legislative proposal should include an e-kerosene sub-target of 1% by 2030. T&E further recommends continued support for DAC RD&D through European and member state funding programmes, such as Horizon Europe, including support for basic and applied research, as well as pilot and demonstration funding.

According to T&E, and in agreement with the E4Tech study, policy support is crucial to “truly tap DAC’s full potential as one of the leading contributors to tomorrow’s clean aviation.” Without such policies, T&E believes DAC companies cannot solve the scalability and cost aspects of the equation. What is absent from the T&E recommendations is direct support for point source capture as proposed by the E4Tech report.

While e-fuels produced using DAC CO2 can undoubtedly deliver significant climate benefits, the high cost of DAC e-fuels is arguably the biggest obstacle to its development. Aggressive policies to support DAC, as outlined by T&E, could support the scale-up of DAC technology and realise the necessary future cost reductions to deliver sustainable fuels for aviation at a competitive price. However, e-kerosene will still need to compete with SAF produced through other technology pathways. Aviation is also a global sector, and European airlines may be reluctant to support policies that will place them at a competitive disadvantage. Several SAF producers using other technologies, have also demonstrated they can produce carbon neutral fuels to deliver similar climate benefits to e-fuels from DAC (see article).

Photo: When operational, Climework’s Orca DAC facility in Iceland will capture 4,000 tonnes of CO2 per year

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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