Watershed, an international platform which helps some of the world’s biggest corporations to measure, report and reduce their carbon emissions, has facilitated the purchase of sustainable aviation fuel certificates (SAFc) by four major companies to help them compensate for emissions created by their corporate air travel. The deals were arranged through the Sustainable Aviation Buyers Alliance (SABA), for BlackRock, a global investment, advisory and risk management group, and financial and corporate technology companies Ripple, Samsara and Block. The SAF associated with their certificates will be allocated to US carrier Alaska Airlines, a founding member of SABA, while the four companies will be able to claim environmental attributes of the fuel as contributions to their own emission reduction targets.

Watershed measures total carbon emissions across all areas of corporate operations, then consolidates data to provide a detailed account of emissions for reports to shareholders, regulators and other stakeholders.

It also identifies and helps deliver remedial actions, as it has in this case through its partnership with SABA, for which it aggregates corporate demand for SAFc, leading to procurement and delivery of authenticated, high-integrity supplies to airlines.

The four purchases it has just announced, while not specifically quantified, are linked to a collection of deals announced by SABA earlier this year which are expected to attract SAFc commitments valued at $200 million, equating to approximately 50 million gallons of the fuel.

The SAF will be sourced from four fuel suppliers over five years and, fully deployed, is expected to reduce CO2 emissions from aircraft by approximately 500,000 tons.

Claire Kiely, Head of Watershed Marketplace Carbon Supply, said collective purchasing deals such as the four just announced represent “a compelling demand signal” to help increase supplies of SAF.

“Watershed consolidates our customers’ demand for high-impact, low-carbon technology like sustainable aviation fuel, then works with SAF suppliers, airlines and experts through SABA to meet that demand and grow an essential new sector,” she said.

“By participating in this historic investment, Watershed customers are providing a powerful demand signal for SAF and affirming the role SAFc will play in corporate emissions reduction initiatives.”

Alaska Airlines, the end user in the Watershed SAFc deal, is a leading proponent of multiple decarbonisation technologies, including SAF, hydrogen-electric propulsion and all-new aircraft designs.

The carrier’s scale has just increased with approval of its acquisition of Hawaiian Airlines, which, while it will continue to operate as a separate brand, potentially offers further opportunities to broaden deployment of SAF under the group umbrella, in addition to its own plans for the fuels.

“Alaska Airlines is all-in on advancing the market for sustainable aviation fuels, a critical element in the path to decarbonise aviation,” said Diana Birkett Rakow, the company’s SVP Public Affairs and Sustainability.  

“We are one of the founding members of SABA’s Aviators group because we know that we will only reach our destination if we’re tackling this challenge from all angles – business, policy, financing and more. Investing in SAF alongside partners like Watershed, BlackRock, Ripple, Samsara and Block helps us scale up use.”

BlackRock has highlighted “a massive reallocation of capital” as the low-carbon economy continues to evolve globally with new technologies, changing consumer and investor preferences, and shifts in government policies.

Ripple’s VP Social Impact and Sustainability, Ken Weber, said joining the corporate push to boost SAF use was also an important step for his company in reaching its target of net zero carbon by 2030.

“Through collaboration with Watershed and SABA we are not only supporting the growth of SAF but also empowering other companies to take similar meaningful steps in reducing their emissions footprint,” he said.

Kim Carnahan, Head of SABA’s secretariat and CEO of the Center for Green Market Activation, said aggregator partners such as Watershed were critical in helping accelerate the growth of green commodity markets.

“By consolidating demand among its customers, Watershed is helping SABA send a larger demand signal to the SAF market while enabling us to welcome a new set of leading corporations,” she said.

SABA was founded by the Environmental Defense Fund and Rocky Mountain Institute and is supported by the Center for Green Market Activation. Among SABA’s founding members are corporations including Bank of America, Boeing, Boston Consulting Group, Deloitte, JP Morgan Chase, McKinsey & Co, Microsoft, Meta, Netflix and Salesforce.

Photo: Alaska Airlines

Tony Harrington

Correspondent

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Corporate members of the Sustainable Aviation Buyers Alliance (SABA) have committed to purchasing sustainable aviation fuel certificates (SAFc) for nearly 50 million gallons of SAF, with an investment value of close to $200 million. The multi-year collection of deals, which involves 20 corporate customers, four fuel providers and three airlines, has the potential to reduce around 500,000 tons of CO2e. Purchasing SAF certificates enables corporate travellers to invest in SAF and capture the environmental benefits, allowing them to make GHG emissions reduction claims on their climate disclosures, while the physical SAF flows to an aircraft operator. SABA is working with airline partners Alaska, JetBlue and Southwest, securing certificates through SkyNRG and purchasing directly from fuel providers including World Energy.

“Creating an ecosystem that equips companies from all economic sectors to access more SAF is part of our mission,” said Adam Klauber, VP Sustainability and Digital Supply Chain at World Energy, the world’s first commercial-scale SAF producer. “We are proud to collaborate to help Scope 3 customers achieve their net zero goals and dramatically increase SAF production with these long-term contracts.”

SABA said multi-year deals were essential in driving scale in the SAF market as long-term certainty about demand helped fuel producers secure financing for their projects and so bring more SAF to market.

“SABA plays a critical role in helping companies identify and purchase the highest-integrity sustainable aviation fuels to accelerate progress towards net zero goals,” said Elizabeth Sturcken, Managing Director at Environmental Defense Fund (EDF), which co-founded the alliance.

Different fuel types are being purchased through the set of agreements, including power-to-liquids, or e-fuels, produced from renewable electricity and CO2 by startup Twelve, and offered in partnership with Alaska.

As global demand for aviation and SAF grows, partners like SABA will be increasingly crucial to bring the full range of aviation stakeholders to the table,” said Nicholas Flanders, co-founder and CEO of Twelve. “Innovative power-to-liquid fuels will deliver deeper emissions reductions but need the support of airlines and corporations in order to scale. We’re proud to join with SABA and its collective of forward-minded corporate customers, airlines and fellow fuel providers to deliver E-Jet fuel and help pioneer the market for high-integrity SAF certificates.”

The new RFP multi-year purchase follows a pilot SAFc procurement for nearly 850,000 gallons of SAF last year. By expanding the process to include multiple fuel providers and airlines, customers are able to invest in a range of fuel types and help bring new technologies to market, said SABA.

“As we continue to optimise our business travel emissions, we recognise the crucial role that lower carbon air travel plays in meeting global climate targets,” commented David Webb, Chief Sustainability Officer of BCG, a SABA member. “The SAF industry is rapidly evolving and we are enthusiastic about its potential to scale and support a more sustainable, global economy.”

EDF and SABA’s other co-founder, RMI, have developed the digital SAFc Registry that was launched during COP28 in Dubai last December, which is being used as the central platform to record the certificates purchased through the RFP. Building on industry best practices, the registry creates an auditable ledger to ensure the certificates realise their intended environmental impact and can be claimed towards emissions reduction goals.

“The SAFc Registry plays a critical role in the SAF ecosystem by bringing greater consistency and transparency to SAFc transactions, building trust along the SAF value chain and helping send a strong demand signal for the low-carbon fuels needed to decarbonise the aviation sector,” said Bryan Fisher, Managing Director at clean energy non-profit RMI.

Plans for a new collective procurement process are underway, although SABA cautioned available SAF volumes that met its requirements “came nowhere close” to meeting the full demand from its customers in 2024 and 2025.

“The only way to drive structural change in hard-to-abate sectors like aviation is to shake up existing business models,” said Kim Carnahan, Head of SABA’s Secretariat and CEO of Neoteric Energy and Climate. “The recent announcement from the Science Based Targets initiative opening the door to the use of market-based approaches to address Scope 3 emissions only elevates the importance of SABA’s book-and-claim system as an innovative and environmentally robust avenue for customers to drive aviation decarbonisation.”

SABA is hosting a webinar on May 1 that will discuss the latest multi-year RFP SAFc procurement. Details here

Photo: Alaska Airlines

Christopher Surgenor

Editor

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Bank of America has become the first financial institution to join the sustainable aviation fuel purchasing programme jointly established by Shell Aviation and American Express Global Business Travel (Amex GBT). The book-and-claim programme enables corporations to verifiably purchase SAF to compensate for the emissions created when their employees fly on company business. The bank has pledged to support the production and use of 1 billion gallons of SAF by 2030 and has committed to ensure SAF comprises at least 20% of the total jet fuel used each year in flights by its own staff and management. The new partnership coincides with an announcement by Shell that it will supply SAF to Japan Airlines in Los Angeles from 2025.

“By purchasing SAF, and working with other companies, we are taking more tangible steps to help build a more affordable and accessible sustainable aviation fuel market,” said Beth Sullivan, Bank of America’s Head of Global Corporate and Executive Travel.

The Amex GBT-Shell programme adopted by Bank of America is designed to connect airlines with corporations willing to help pay the premium charged for SAF, which is currently two-to-eight times the price of conventional fossil-based jet fuels. The programme uses the blockchain-powered Avelia book-and-claim platform, which leverages the Amex GBT base of over 19,000 clients in 140 countries, and accounts for SAF provided by Shell.

“The business travel sector has a critical role to play in scaling SAF and accelerating the decarbonisation of travel,” said the Amex GBT’s President, Andrew Crawley. “We will move closer to achieving these objectives with more companies like Bank of America making bold commitments and recognising the powerful role the corporate travel programme can play in achieving a company’s broader sustainability goals.”  

Participation by Bank of America in the programme follows multiple previous commitments by the bank to help catalyse the broader SAF market through financing, investment, capital markets and procurement. Its stated aim is to work with aviation fuel suppliers and other members of aviation’s energy ecosystem to help boost production of SAF, and support the development of distribution infrastructure through sustainable financing.

Among its commitments are a partnership with American Airlines to support the purchase of 3 million gallons of SAF over a three-year period, and a 10-year deal with SAF provider SkyNRG to support the production of 1.2 million gallons of SAF per year from 2025.  

The bank is also a founding member of the Sustainable Aviation Buyers Alliance (SABA), a partner in two sustainability programmes of the World Economic Forum, ‘Clean Skies for Tomorrow’, and the ‘First Movers Coalition’, and a member of Breakthrough Energy Catalyst, a specialist investment vehicle established by tech billionaire Bill Gates to fund or invest in emergent technologies, including SAF, which help to reduce greenhouse gas emissions.

The WEF was the catalyst for widespread commitments last year to accelerate SAF use to 10% by 2030. “Companies are moving from pledges to actual business practices,” said Lauren Uppink, the WEF’s Head of Climate Strategy. “This programme and Avelia represents the culmination of years of groundwork building the value chain to support the scaling of SAF, now operational. The theoretical is becoming real.”

Shell Aviation’s President, Jan Toschka, added: “It’s brilliant to see Bank of America leading the finance sector’s charge to decarbonise business travel through SAF. Corporations that choose to fly on SAF have the power to catalyse the scaling of this technology and accelerate decarbonisation across the aviation sector. It’s a fantastic opportunity for businesses to make aviation more sustainable.”

As well as supplying SAF for corporate purchasers, Shell is also upping its supplies to airlines, announcing an agreement to fuel Japan Airlines services in Los Angeles from 2025. Shell says it will provide JAL with SAF volumes of SAF “equivalent to its current estimated jet fuel uplifts in Los Angeles over the supply period.”

While the length of the period was not specified, JAL has committed that 1% of its total jet fuel from 2025 will be SAF, increasing to 10% of total use by 2030 as it strives to achieve net zero carbon emissions by 2050. Recently, JAL also set itself the 2030 target of reducing CO2 emissions by 10% compared to 2019 levels.

JAL’s Los Angeles commitment parallels moves by Japan’s Ministry of Economy, Trade and Industry (METI) to mandate 10% SAF use on international flights from Japan, effective from 2030. The proposal also will require fuel suppliers to provide product including a 10% SAF blend. Subject to review by a council of private and public sector members, the SAF blending mandate is expected to be formalised by March next year. 

Photo: Shell Aviation

JetBlue has become the latest US carrier to offer its corporate customers the opportunity to reduce their business travel emissions through the purchase of sustainable aviation fuel (SAF). Its new Sustainable Travel Partners programme also offers complimentary carbon offsetting on all domestic flights operated by JetBlue, personalised travel data and analysis for more accurate emissions reporting and consultation and tools for custom planning and target-setting to help support the partners in making more sustainable travel decisions. Launch customers for the programme include Biogen, Deloitte, ICF and Salesforce, who will be able to reduce their Scope 3 travel emissions through the purchase of JetBlue-generated SAF certificates, while assisting the airline to cover the current SAF cost premium. The programme’s partners will be helping source around 325,000 gallons of SAF, resulting in a reduction of 2,730 tonnes of CO2 emissions.

“As our business customers return to the skies, they increasingly have been asking for our support in meeting their net zero and sustainable travel goals,” said Sara Bogdan, JetBlue’s Director of Sustainability and Environmental Social Governance. “JetBlue has extensive expertise in decarbonising air travel thanks to our early and leading commitments and supply agreements. We’re now extending these options to our corporate customers so that for the first time, they can play a direct role in enhancing the sustainability of their air travel when flying with JetBlue.”

Since July 2020, the airline has used SAF as a component of its fuel supply from Neste out of San Francisco International Airport and, since July 2021, from World Energy on flights from Los Angeles International. It recently revealed a deal with SG Preston to purchase 67 million gallons of blended SAF a year for use at Northeast US airports over 10 years. The agreement brings JetBlue’s SAF offtake commitments based on a percentage of total fuel to around 8%, which it says is on track to meet its goal of converting 10% of total fuel use to SAF “years ahead” of its 2030 target.

Offering corporate customers the opportunity to purchase SAF certificates will not only help the airline cover the cost premium but also stimulate the emerging SAF market, said JetBlue, which it believes is critical for the aviation industry to reach its net zero goal.

Verification standards for SAF certificates are currently being formulated by the Roundtable on Sustainable Biomaterials (RSB) and the Sustainable Aviation Buyers Alliance (SABA). “We continue to monitor the evolution of the SAF certificate space and fully support the development of further structure around these certificates, and as founding members of the new SABA Aviators Group, we are able to remain engaged and adhere to these standards when they become available,” Bogdan told GreenAir.

“The certificates we are providing our corporate customers today are generated in-house at JetBlue and contain key data provided to us from our SAF producers. We are also managing a new inventory of SAF certificates to ensure we are closely accounting for each gallon of SAF delivered to us and associated certificates generated to ensure no double-selling.”

In building the programme, Bogdan said the airline wanted to go beyond just offering SAF certificates. “We recognise there’s no one solution to achieving net zero, so we designed it offering what we see as the key levers our partners can pull to further the sustainability of their corporate travel,” she said. “As a partner in this programme, our customers can purchase JetBlue-generated SAF certificates but they also have access to personalised emissions reporting on their JetBlue flights, expert guidance and target-setting support, along with our complimentary carbon offsetting of all domestic travel.”

In July 2020, JetBlue became the first US airline to voluntarily offset domestic CO2 emissions, purchasing offsets that are audited, verified and retired on its behalf by its three partners: Carbonfund.org, EcoAct and South Pole. Projects that reduce or avoid CO2 emissions are selected from around the world and focused on forestry, landfill gas capture, solar and wind.

“As Sustainable Travel Partners, JetBlue’s customers can benefit from enhanced reporting on our complimentary carbon offsets, as well as review opportunities to expand offsetting utilising our offsetting expertise and business partners,” said the airline.

JetBlue points out that business travellers have not previously had the ability to estimate their air travel emissions in a personalised, accurate or granular way.

“Through the programme, we are saving partners the effort of inaccurate guesswork by offering emissions reporting based on traveller’s actual flying and JetBlue’s average actual fuel burn on those routes,” it said. “Our intent is to provide partners with more accurate emissions reporting by sharing actual operational data, as well as incorporating the airline’s own emissions reduction initiatives into emissions reporting.”

JetBlue is also working to include travel emissions data into Salesforce’s Net Zero Cloud software, which it hopes to make available to the other programme partners. For corporate customers who purchase SAF certificates, JetBlue will also provide emissions reporting highlighting the estimated emissions reduction associated with the SAF.

“Whether an organisation is just starting to look at how they can implement sustainability goals and need some guidance or have an already developed sustainability programme with requirements for precision reporting, JetBlue seeks to approach each Sustainable Travel Partner as just that – a partner in our shared goal of making more sustainable travel decisions,” said Bogdan. “An example of this is our work with Salesforce to integrate JetBlue’s flight data into their Net Zero Cloud.”

Commented Patrick Flynn, VP and Global Head of Sustainability at Salesforce: “We are proud to join JetBlue’s Sustainable Travel Partners programme to help accelerate the aviation industry’s journey to net zero. The urgency of this climate emergency means we need all-of-the-above strategies. For us that includes helping incentivise emerging clean technologies like sustainable aviation fuels and working with partners like SABA to lower barriers to scale and cost reduction.”

Said ICF CEO John Wasson: “As the first professional services firm in the world to reach carbon neutral status in 2006, sustainability is part of our company’s DNA. As we continue to pursue our own ambitious carbon reduction targets, we’re thrilled to partner with JetBlue to help other companies achieve their sustainability targets too.”

Added Dr Alphonse Galdes, Head of Pharmaceutical Operations and Technology at Biogen: “Climate action is essential for human and planetary wellbeing. Yet if we hope to make a substantive impact in this area, we must come together across industries to re-examine the way we work, the way we live and the way we consume energy. By becoming an inaugural member of JetBlue’s programme, we are proud to reduce our dependency on fossil fuels and their associated impacts, as well as utilise more accurate data to inform travel decisions in the future.”

In November 2021, JetBlue joined SABA, a joint initiative with RMI, Environmental Defense Fund and a group of corporate travellers and US airline to help drive investment in high-integrity SAF. The previous month it became a launch member of the Aviation Climate Taskforce, a new non-profit organisation founded alongside nine other global airlines and Boston Consulting Group to accelerate breakthroughs in emerging technologies to decarbonise aviation.

Photo: JetBlue

NEWS BRIEFS

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

• Linkedin

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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US government departments and agencies have joined with the aviation and fuel sectors to agree a stimulus package to put US aviation on track to achieve net zero greenhouse gas emissions by 2050. It includes new and ongoing funding opportunities to support sustainable aviation fuel (SAF) projects and fuel producers totalling up to $4.3 billion in efforts to boost production of SAF to at least 3 billion gallons per year by 2030 under a ‘Sustainable Aviation Fuel Grand Challenge’ initiative. Through their trade body A4A, US airlines pledged in March to work towards making 2 billion gallons of SAF available by 2030 but are now increasing that goal by an additional 50%. The Biden administration also announced its backing for a SAF tax credit to incentivise and scale up production as part of its Build Back Better green agenda. Also announced were an increase in R&D activities on new technologies to spur developments in aircraft fuel efficiency and efforts to improve air traffic and airport efficiency. The administration said it would be strengthening its aviation and climate change leadership internationally and will support the adoption at ICAO of a long-term aspirational goal for reducing aviation emissions.

“President Biden is taking steps to coordinate leadership and innovation across the federal government, aircraft manufacturers, airlines, fuel producers, airports and non-governmental organisations to advance the use of cleaner and more sustainable fuels in American aviation,” said a White House fact sheet released after a roundtable on sustainable aviation held on September 9. “These new agency steps and industry partnerships will transform the aviation sector, create good-paying jobs, support American agriculture and manufacturing, and help us tackle the climate crisis.”

Responded A4A President Nicholas Calio, who attended the White House meeting: “We are proud of our record on climate change, but we know the climate change challenge has only continued to intensify. Accordingly, A4A member carriers have embraced the need to take even bolder, more significant steps to address the climate crisis.”

Commercial flights contribute 11% of US transportation-related emissions and 2% of the nation’s total. “Without increased action, aviation’s share of emissions is likely to increase as more people and goods fly. That is why leadership and innovation in this sector is so essential if we hope to put the aviation industry, and the economy on track to achieve net zero greenhouse gas emissions by 2050,” says the Biden administration.

“Achieving a sustainable aviation industry requires energy efficiency improvements in aircraft technology and better operations. In the future, electric and hydrogen-powered aviation may unlock affordable and convenient local and regional travel. But for today’s long-distance travel, we need bold partnerships to spur the deployment of billions of gallons of sustainable aviation fuels quickly.”

Current levels of domestic SAF production are around 4.5 million gallons per year. Jet fuel consumption from domestic and outgoing international flights totalled 19.2 billion gallons in 2019, according to the Bureau of Transportation Statistics, still lower than peak consumption years but had been edging up since 2015 prior to the Covid-19 pandemic. A 3-billion-gallon goal therefore represents a 15% share of total jet fuel consumption being taken up by SAF in 2030, if based on 2019. The actions taken, says the administration, will enable aviation emissions to drop 20% by 2030 when compared to business as usual if the goal is met.

The proposed SAF tax credit requires a minimum 50% reduction in lifecycle GHG emissions and so offers an increased incentive for greater reductions. The Department of Energy (DOE), Department of Transportation (DOT) and US Department of Agriculture (USDA) are to support SAF producers through the new Grand Challenge initiative in order to work with stakeholders to reduce costs, enhance sustainability and expand production and use of SAF that meets the 50% lifecycle reduction. In addition to the 2030 goal, the target is to meet 100% of aviation fuel demand with SAF by 2050, which is currently projected to be around 35 billion gallons per year. In a series of actions to be taken:

• USDA will support US farmers with climate-smart agriculture practices and research, including biomass feedstock genetic development, sustainable crop and forest management at scale, and post-harvest supply chain logistics. USDA will also support fuel producers with carbon modelling components of aviation biofuel feedstocks.
• The Environmental Protection Agency and DOE will collaborate to identify data collection needs, assess technical information and take other steps designed to expedite the regulatory approval process to support newly developed fuels and feedstocks that might be viable for inclusion as able to generate Renewable Identification Numbers (RINs) under renewable fuel in the Federal Renewable Fuel Standard programme.
• The FAA will make 14 grant awards with FY21 funds to the Aviation Sustainability Center (ASCENT) totalling more than $3.6 million. This will support the SAF approval clearing house in conducting evaluation testing to ensure that new fuels are safe for use.

Other funding initiatives include the DOE Bioenergy Technologies Office’s already announced $35 million for 11 projects developing feedstock and algae technologies for advancing the domestic bioeconomy, plus a new additional $61 million to advance biofuels and support the reduced cost of SAF pathways, including 11 projects that are scaling up promising technologies to produce SAF. The DOE is also offering up to $3 billion in loan guarantees, with commercial-scale SAF projects that utilise innovative technology and avoid, reduce or sequester GHG emissions and meet other requirements potentially eligible. Department of Defense (DOD) funding, subject to appropriations, is to be made available to certify the use of up to four additional SAF pathways already approved in the commercial market, as well as additional SAF pathways in the ASTM approval pipeline for military aircraft.

Further initiatives, collaborations and funding have been announced by NASA, FAA, DOD and DOE to achieve at least a 30% improvement in aircraft fuel efficiency, improving air traffic and airport efficiency to reduce fuel use, eliminate lead exposure and ensure cleaner air in and around airports.

The administration says it plans to release an aviation climate action plan in the coming months. It also commits the United States “to asserting positive leadership on aviation and climate change.

Adds the White House statement: “As a country, we will re-establish US credibility through ambitious domestic commitments and realistic action plans for implementing those commitments, demonstrate leadership on aviation ambition at the International Civil Aviation Organization by showing the world by implementing CORSIA transparently and effectively, and supporting adoption of a long-term aspirational goal for reducing aviation emissions. We will also engage with bilateral and regional partners to forge a diverse coalition of States committed to greater ambition and action on aviation.”

In addition to representation from the aviation and SAF production sectors, the roundtable was also attended by Fred Krupp, President of Environmental Defense Fund (EDF) and Jules Kortenhorst, CEO of RMI, which are spearheading the recently-formed Sustainable Aviation Buyers Alliance (SABA).

“In the coming months, the administration will be challenged to develop a methodology to determine the environmental criteria to ensure that only high-integrity SAF receives public support. The administration’s call for credibility and consistency with the international community, including ICAO, makes us optimistic. EDF and our partners in SABA are up to the task of ensuring that SAF contributes effectively to decarbonisation,” said Pedro Piris-Cabezas, EDF’s Director for Sustainable International Transport.

Photo: Alaska Airlines

Boston Consulting Group (BCG) has announced an eight-year partnership with SkyNRG to purchase sustainable aviation fuel (SAF) for its business travel flights starting in 2022, so becoming the newest member of SkyNRG’s Board Now corporate programme. The move is in support of BCG’s commitment to achieving net zero climate impact by 2030 at the latest, with more than 80% of the organisation’s carbon footprint attributable to business travel. SkyNRG says the long-term agreement will support the development of a new SAF production facility in the Netherlands, which will produce 100,000 tonnes of SAF annually from sustainable sources such as waste oils when it eventually comes onstream, with BCG committing to purchasing existing supplies in the meantime. BCG joins Microsoft, SkyScanner, PwC and others as Board Now programme Leader – the highest membership level. It also recently joined the Sustainable Aviation Buyers Alliance (SABA) as a founding member.

“Lower-carbon air travel is a vital part of achieving our net zero goal, as well as the global climate targets. This partnership with SkyNRG will help to develop the global market for more affordable sustainable aviation fuel,” said Rich Lesser, CEO of BCG.

Both BCG and SkyNRG have participated in the World Economic Forum-led Clean Skies for Tomorrow (CST) coalition since 2019. SkyNRG is also part of WEF’s SAF Certificate (SAFc) pilot, which is aiming to develop a globally recognised accounting system for SAF (see article).

“It is great to see that BCG is at the forefront of making the aviation industry more sustainable as a member of our Board Now SAF programme,” said SkyNRG Managing Director Theye Veen. “With this long-term partnership, BCG enables the acceleration of the sustainable aviation industry, bringing us one step closer to making SAF the global standard in aviation.”

In June, BCG entered into an agreement with Neste for the purchase of SAF to be delivered to airlines SAS and Finnair, covering the volume of all flights taken by BCG employees in the Nordic region with these carriers. BCG is Neste’s first corporate client for its SAF-based solution in which Neste and its airline partners help organisations reach their emission reduction targets, and includes a third-party audit process to ensure other customers cannot claim emission reductions on the same SAF volume.

“The core value proposition of BCG is to connect our clients with the best global expertise and talent, whatever the business issue at hand might be. Next generation ways of working have opened up tremendous opportunities to accomplish this virtually. Yet some travel will be needed going forward in order to deliver the greatest value to our clients,” said Tuukka Seppä, Managing Partner of BCG Nordics. “This move is part of BCG’s global efforts to advance the path to lower-carbon travel and is an important step on our journey to net zero climate impact by 2030.”

BCG is the Consultancy Partner for the COP26 climate conference in November and has expanded its climate and sustainability capabilities by transforming its former Center for Climate Action into a global BCG Center for Climate & Sustainability, which brings together over 550 experts from across the firm.

In other SkyNRG news, the company is to partner with Dutch festival brand DGTL that will ensure all artists travelling to and from its international events by air will have their flight CO2 emissions reduced through SAF purchase.

“Working with SkyNRG, DGTL’s sustainability model once again provides a groundbreaking blueprint for other promoters and large-scale event organisers,” said DGTL, which claims to have solved other event sustainability issues around energy, water and sanitation. “This innovation is the final piece in DGTL’s overall sustainability puzzle. Furthermore, it is a scalable solution that can reduce air travel emissions for other events too where air travel may be unavoidable. DGTL’s festivals have a huge reach, which is why it is important we lead by example and plant the seed for change.”

A new certificate system has been launched that will allow corporations and travellers to claim lower emission benefits through covering the price premium of sustainable aviation fuel (SAF). It aims to unlock funding sources and help boost demand for clean jet fuels that ensure reductions in lifecycle carbon emissions. The Sustainable Aviation Fuel Certificate (SAFc) has been developed through the World Economic Forum’s Clean Skies for Tomorrow (WEF CST) initiative under a project co-led by WEF, RMI and PwC Netherlands and involving a wide range of industry partners. The system works within standard book-and-claim processes, which will allow the actual SAF to be delivered to the airport nearest its production plant. The certification is initially designed for corporations with significant air travel and freight carbon footprints but WEF said it can be expanded in due course. A number of large US corporations have recently signed SAF agreements with airlines including American and Alaska.

“Clean Skies for Tomorrow was founded to accelerate the deployment of SAF and aviation’s net zero pathway,” said Pedro Gomez, Head of Shaping the Future of Mobility at WEF. “Consumer demand for sustainable air travel is a critical part of that pathway and SAFc was specifically designed to enable a clear and consistent market demand signal.”

With SAF two to five times the price of convention jet fuel and accounting for only 0.1% of fuel used in aircraft worldwide, the high cost and limited supply deters investment to scale up production and requires a significant demand stimulus, which the SAFc mechanism aims to provide, says WEF. This kind of intervention is particularly critical during the pandemic recovery, it adds, when a financially perilous aviation industry is unable to subsidise increased use of SAF on its own.

“This is the time for innovation in aviation emissions reduction,” said Jules Kortenhorst, CEO of RMI. “SAF provides the most promising solution to reducing aviation emissions yet today, demand for SAF far outstrips supply. WEF and RMI have developed SAFc to enable ambitious corporations to address emissions from flying while sending a strong demand signal and catalysing new SAF production.”

WEF says corporations have already indicated a willingness to pay more for employees’ sustainable travel practices and input from stakeholders in the CST initiative suggests corporate demand alone can cover one-third of the price premium associated with IATA’s 2025 global SAF volume target of 2% of jet fuel consumption, or around 6-7 billion litres. In terms of ticket prices, feedback from many CST’s aviation customer partners indicates a 5-10% increase in airfares would be acceptable provided this delivered a significant and verifiable decrease in emissions, reports WEF.

Some large companies within the CST coalition – including Deloitte, Deutsche Post, DHL Group, Microsoft and BCG – have already signed SAF agreements in respect of corporate travel with airlines including Alaska Airlines and American Airlines (see articles here and here). In May, a group of large American corporations formed the Sustainable Aviation Buyers Alliance to drive investment in SAF (see article)

The SAFc system has been designed with a robust tracking and verification process, assures WEF, as well as a registry to ensure that climate-related claims are legitimate and only claimed by a single party. It says this type of virtual accounting system is already established in renewable electricity markets through energy attribute certificates and guarantees of origin, and has served as a model for the SAFc framework. These mechanisms verify that electricity is generated from an eligible renewable source and have been instrumental in allowing companies to claim the resulting environmental benefits without producing electricity themselves.

Under the SAFc mechanism, fuel producers generate eligible SAF from sustainable feedstocks following standards such as those developed by the ICAO CORSIA scheme. They issue a defined amount of SAFc based on either fuel volume or overall lifecycle emission reductions. Producers can then sell the actual SAF volume as well as the virtual SAF certificates separately. In a volumetric model, SAFc prices could factor in the overall premium of the associated SAF over fossil-based jet fuel after government incentives are incorporated. In a lifecycle assessment (LCA) based model, SAFc prices would be based on overall LCA emission reductions over a standardised baseline of fossil-based jet fuel. SAF buyers or users such as aircraft operators can claim the direct (Scope 1) emissions reduction value of the SAF itself and the buyer of the SAFc, such as a corporation with business travel needs, can retire the certificate and claim the related indirect (Scope 3) emission reductions.

Once the SAF has been certified as sustainable, it can be transacted and ownership transfer is tracked both physically and virtually until claims are retired within a registry.

Over the next year, WEF says the development of the SAFc framework will shift into a next phase that will include additional SAFc pilot transactions and finalisation of a full emissions accounting system. Other developments will ensure compatibility with regional SAF regulations and policies, such as the EU SAF blending mandate and California’s Low Carbon Fuel Standard.

Photo: Deloitte has teamed with American Airlines to offset business travel emissions through SAF

A group of America’s most prominent companies have become founder members of a partnership set up to drive investment in high-quality sustainable aviation fuel (SAF). The Sustainable Aviation Buyers Alliance (SABA) is an initiative of RMI and Environmental Defense Fund (EDF), with founding members Boeing, Boston Consulting Group, Deloitte, JPMorgan Chase, Microsoft, Netflix and Salesforce. A significant portion of the members’ carbon footprint results from business travel and by purchasing SAF, these corporations will be able to access the GHG reductions associated with SAF to directly mitigate their travel carbon footprint. SABA aims to create an aggregated demand for SAF, sending a potentially strong market signal for SAF which it expects will boost development of SAF production and investment into the sector, reports Susan van Dyk. According to RMI’s Adam Klauber, demand created by SABA could amount to 2 billion gallons of SAF by 2025, a significant volume based on current SAF production, which is less than 0.01% of current jet fuel demand.

SABA says its mission is to accelerate the path to net zero aviation through high-quality SAF, catalysing new SAF production and technological innovation and supporting member engagement in SAF policy-making. It has set out three objectives:

• Expand the SAF investment opportunity by establishing an environmentally rigorous, transparent SAF certificate system, and develop an approach to aggregate member demand to incentivise new SAF supply;
• Provide education and policy support to members; and
• Assess emerging SAF technologies and address barriers to scale and cost reduction.

Even during the best of times, airlines operate on slim margins and have a limited ability to pay high premiums for SAF, which can range from three to six times higher than conventional jet fuel, although a number of major airlines have offtake agreements in place with potential SAF producers to narrow the price gap. Long-term development and commercialisation of SAF will require policy intervention to create a market demand and bridge the gap.

In the absence of such policies, SAF use may be limited to airlines willing to pay the price premium, funded through increased ticket prices or other mechanisms that may affect airline competitiveness. SABA’s members, on the other hand, could more readily pay a premium for SAF, said Adam Klauber, Senior Technical Advisor at RMI (formerly Rocky Mountain Institute), who leads its sustainable aviation team.

According to SABA Secretariat lead Kim Carnahan, Director of Disruption Technologies at ENGIE Impact and former US Chief Negotiator for Climate Change, “A large, growing number of companies have committed to ambitious climate goals and are focusing on driving reductions within their value chain.”

Added Microsoft’s Carbon Program Manager, Elizabeth Willmott: “We have a bold commitment to become carbon negative by 2030 and this requires us to create innovative new solutions and partnerships. As a corporate buyer and vocal supporter of high-quality SAF, we’re pleased to join together with companies leading on climate action to support SABA’s mission to decarbonise aviation and ultimately increase SAF production and adoption.”

Many corporations indirectly contribute to aviation emissions through business travel. The Boston Consulting Group, for example, indicate that business travel constitutes about 80% of the company’s carbon footprint. As they are not direct users of jet fuel, they cannot directly use SAF to mitigate these emissions, but Environmental Attribute Certificates (EACs), or SAF certificates, can be used to reduce this climate impact. Indirect emitters are willing to pay the premium but cannot take ownership of the fuel and EACs allow them to access the reductions within their value chain.

“SABA adds momentum to existing airline-company partnerships that support the purchase of sustainable aviation fuels,” said Kelley Kizzier, Vice President of the Global Climate programme at EDF. “SABA will build on the work of these early movers, many of whom seek a more scalable, standardised approach, by establishing a SAF certificate system with robust environmental criteria. Working with sustainability certification schemes, this system will verify and track emission reductions from SAF so that companies, organisations and even individual travellers can achieve their ambitious climate goals.”

Similar to a book-and-claim system, the environmental attributes of SAF will be decoupled from the physical fuel and tracked as SAF certificates using digital markers. The SAF certificate system includes:

• a lifecycle assessment approach;
• sustainability criteria; and
• a tracking and verification approach to create a SAF traceability system and a SAF certificate registry system, established alongside approved sustainability certification schemes under ICAO’s Carbon Offsetting and Reduction Scheme (CORSIA).

The registry system will be designed to be publicly available and transparent, holding the SAF certificates purchased by companies and document retirement of certificates.

“SABA builds off the foundational SAF sustainability work under ICAO and the ‘Corporate Demand’ approach developed with the World Economic Forum’s Clean Skies for Tomorrow,” said Klauber.

A commonly used method of climate mitigation is the purchase of carbon offsets and this forms the basis of CORSIA. However, other studies, including a recent report from the Energy & Climate Intelligence Unit and Oxford Net Zero, argue offsets do not always provide fully additional effort, and reliance on them may present risks to effective mitigation. A clear conclusion from the report is that offsetting cannot be a substitute for significant emissions cuts. Net zero pledges can play a central role in guiding the ongoing emissions reductions needed to deliver the Paris goals, it says, but adds “analysis shows that these commitments vary hugely in their quality”.

SABA members, in contrast, have used Science Based Targets (SBT), an initiative to drive ambitious climate action in the private sector, which espouses a mitigation hierarchy that prioritises eliminating sources of emissions within the value chain. According to SBT, carbon offsets can only be used as a last resort. SBT helps companies set targets for reducing their carbon footprint and uses a scientific basis to verify targets in accordance with the Paris Agreement. The purchase of SAF and acquiring of SAF certificates therefore reduces the climate impact within the aviation sector where emissions are created.

The SAF market is nascent with significant challenges and current availability of SAF is limited. SABA will contract with SAF producers to purchase SAF certificates through RFPs, the first to be issued in Q1 of 2022. Using a 10-12 month lead time for delivery of SAF certificates will enable SAF producers to ramp up production and allow a broader group to SAF producers to participate as only two SAF producers can currently supply commercial volumes of fuel. This will support the creation of new and additional SAF supply capacity and send increased revenue to fuel suppliers, as well as enhance price transparency and competition in the SAF market.

Founding members will be limited to 12 corporations but according to Carnahan, SABA is planning to open up to broader membership after an official launch at COP26 in November. With a large membership, the aggregated demand for SAF could have a significant impact on SAF development and commercialisation, believes the alliance.

Scott Corwin, Deloitte US Leader for Sustainability and Climate Change, said: “Efforts such as SABA are important to harnessing the power of the market to set in motion and sustain the innovations needed to create a zero-carbon future.”

Fellow SABA member Dr Emma Stewart, Sustainability Officer at Netflix, added: “It’s impossible to stabilise the climate without decarbonising aviation emissions. Air travel plays an important role in how Netflix entertains the world – we can’t produce films, TV series and nature documentaries without it. We’re co-founding SABA to build a future where climate-friendly air travel is possible and invite other companies to join the charge.”

Said Carnahan: “This is just the beginning for SABA. We will announce additional founding companies soon.”

Photo: Alaska Airlines

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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