Europe – GreenAir News https://www.greenairnews.com Reporting on aviation and the environment Thu, 19 Dec 2024 11:35:29 +0000 en-GB hourly 1 https://wordpress.org/?v=6.7.1 https://www.greenairnews.com/wp-content/uploads/2021/01/cropped-GreenAir-Favicon-Jan2021-32x32.png Europe – GreenAir News https://www.greenairnews.com 32 32 EASA releases status report on Europe’s SAF production and readiness to meet blending targets https://www.greenairnews.com/?p=6447&utm_source=rss&utm_medium=rss&utm_campaign=easa-releases-status-report-on-europes-saf-production-and-readiness-to-meet-blending-targets Thu, 19 Dec 2024 11:35:24 +0000 https://www.greenairnews.com/?p=6447 EASA releases status report on Europe’s SAF production and readiness to meet blending targets

With the EU about to activate its sustainable aviation fuel blending mandate, the European Union Aviation Safety Agency (EASA) has released an assessment of Europe’s preparedness to deliver required volumes of SAF up to 2030. The blending requirement will escalate from a minimum 2% of jet fuel composition by the end of 2025 to 70% in 2050 for supplies dispensed at airports across the EU’s 27 member states. EASA concludes that by 2030, when the blending mandate reaches 6%, there will be sufficient European production of SAF through multiple pathways to meet the requirements of the ReFuelEU Aviation regulation, which governs the mandate. But it warns rapid action is needed to ensure that a sub-target, initially 0.7%, is achieved for the use of increasingly important synthetic aviation fuels, or e-fuels.

The EASA report, titled ‘State of the EU SAF market in 2023’, examines the capacity of member states to produce the new fuels during the next five years, based on an assessment of the sector’s performance in 2023 and the addition of updated projections. The report, EASA’s first on this subject, also provides real or estimated reference prices for multiple types of current and future aviation fuels and outlines emerging trends in European SAF production.

“This first report on SAF provides a comprehensive analysis and valuable insights to the potential of sustainable aviation fuels for commercial airline operations in Europe,” commented Maria Rueda, EASA’s Strategy and Safety Management Director. “It will be a key component on the journey towards a more sustainable and environmentally friendly aviation sector.”  

EASA says the minimum SAF volume required by 2030 under the ReFuelEU Aviation (RFEUA) programme is around 2.8 million tonnes based on forecast jet fuel consumption of 46 million tonnes and a mandated blending level which, by then, will be at least 6%.

But it qualifies that the SAF production market is “inherently volatile”, impacted by factors including high capital expenditure, feedstock supply chain limitations and the risks to investors of supporting technologies in their early stages. “While many projects are announced,” adds EASA, “some may not reach commercialisation.”

The report presents three scenarios for SAF production in EU countries: Operating, Realistic and Optimistic.

The ‘Operating’ scenario covers only those facilities currently producing SAF, which are expected to deliver just over 1 million tonnes of product by 2030.

The ‘Realistic’ assumption estimates 3.2 million tonnes of SAF will be produced and distributed by facilities already operating, under construction or with small pilot plants either activated or being built. This includes co-processing of SAF in existing refineries.  

The ‘Optimistic’ case predicts 5.5 million tonnes, including pipeline production from projects which have announced elements including technology, feedstock, SAF capacity, commissioning year, location and technical partners, but are yet to be built.

“The Realistic case led to the exclusion of facilities which had not gone through final investment decision (FID) at the time of assessment,” says the report, singling out e-fuels as an example.

“There is a strong pipeline of synthetic aviation fuel projects in the EU, estimated at 1.1 million tonnes by 2030, but at the time of assessment none of these facilities had gone through FID. They were therefore not included in the realistic capacity estimation.”

The report says the hydrotreated esters and fatty acids (HEFA) process, which encompasses converted vegetable oils, waste oils, greases and fats, is the major SAF production pathway, supported by additional supplies through co-processing facilities.

It adds that immature technology for other SAF production pathways including Alcohol-to-Jet (AtJ) and Fischer-Tropsch (FT) prevented them from delivering commercial volumes of the fuel during the study reference year, 2023.

As well, says EASA, the AtJ process of converting alcohols into SAF disqualifies the fuel in the EU because the alcohols are fermented from food crops including corn and sugarcane. 

Additional pathways, including Sun-to-Liquid (StL) and Hydrothermal Liquidation (HtL), are also under development. “However,” says the report, “they remain immature, with only a couple of pilot plants announced, and their contribution to commercial SAF volumes is projected to be negligible by 2030.”

Synthetic aviation fuel is required to comprise at least 1.2% of jet fuel makeup by 2030, which EASA calculates to be a 600,000-tonne requirement. Also known as Power-to-Liquid, or PtL, this process combines water with renewable electricity to extract green hydrogen, which is then combined with captured CO2 to create SAF and other products such as renewable diesel.

“Within the EU,” says the EASA report, “more than 15 synthetic aviation fuel production facilities have been announced, primarily in countries with considerable renewable electricity capacity or infrastructure.”

However, it adds, the requirement for large volumes of renewable electricity, the costs of producing the power and limited sources of eligible carbon in many key locations drives up the costs of e-fuels.  

“The resulting production price is currently non-competitive with other forms of SAF production, particularly HEFA. Therefore, the development of synthetic aviation fuels is likely to be driven by the RFEUA sub-mandate that requires their supply.”

Of eight current or future aviation fuel categories, the report lists market prices or production cost estimates in 2023, reflecting vast premiums for non-fossil product. EASA used price reporting agency (PRA) references to provide benchmarks for price assessments or a basis for estimates.

“Whereas 2023 prices for conventional aviation fuels and aviation biofuels were available through multiple PRA indexes,” said EASA, “the market for other RFEUA aviation fuel types was either non-existent or not yet liquid enough to determine actual reference market prices for 2023. For these fuel types, a bottom-up production cost estimation was developed to provide indicative results.”

The report listed the average 2023 market price of conventional aviation fuel at €816 ($850) per tonne and aviation biofuels at €2,768 ($2,880) per tonne, the latter with an estimated production cost of €1,770 ($1,840) per tonne.

Because none of the other fuel categories had a market price in 2023, production cost estimates were produced by EASA.

Production costs for recycled carbon aviation fuels were estimated to average €2,125 per tonne, while advanced aviation biofuels averaged €2,675 per tonne, low carbon hydrogen for aviation averaged €4,700 per tonne, synthetic low carbon aviation fuels averaged €5,300 per tonne and renewable hydrogen for aviation averaged €6,925 per tonne.

But by far the largest estimates were those for synthetic aviation fuels, the average production cost of which EASA lists as €7,500 per tonne.

The same average estimate – €7,500 per tonne – also applied to synthetic fuel produced with CO2 captured at the industrial source of emission or that made from biogenic CO2.

The most expensive production cost estimated was for fuel produced with CO2 captured from the atmosphere, averaging €8,225 per tonne – more than 10 times the 2023 average market price of conventional jet fuel.

“To be able to meet the synthetic aviation fuel minimum shares, announced synthetic aviation fuel facilities would need to reach FID within the next couple of years,” says the EASA report.  

“On top of this, continuous scale-up in SAF capacity would be needed to comply with RFEUA by 2035, as the minimum SAF share required increases from 6% to 20% by that date.”

The report, developed with the support of consultancy ICF, is a precursor to a first EASA annual technical report due in 2025.

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New study highlights differing strategies and barriers to decarbonising aviation in UK and Europe https://www.greenairnews.com/?p=6404&utm_source=rss&utm_medium=rss&utm_campaign=new-study-highlights-differing-strategies-and-barriers-to-decarbonising-aviation-in-uk-and-europe Thu, 12 Dec 2024 14:35:00 +0000 https://www.greenairnews.com/?p=6404 New study highlights differing strategies and barriers to decarbonising aviation in UK and Europe

A new study by UK-based consultancy CFP Energy has identified a significant divergence of strategies to decarbonise aviation in the UK, France and Germany, and serious impediments to the industry’s ability to reach its net zero emissions targets. The report, ‘Decarbonising the Future: Navigating ETS Reforms and Net Zero Solutions’, was based on surveys of chief financial officers and risk management professionals of more than 500 organisations in high-emission industries including aviation, shipping, construction, data centres and manufacturing. The study reflected strong uptake of measures including biofuels, green certificates and voluntary carbon credits. But of the aviation operators surveyed in the UK and Europe, 95% of respondents expect a rise in carbon allowance demand, while funding limitations and insufficient access to new technologies are highlighted as key barriers to progress.

“Between funding issues, regulations, knowledge gaps and a lack of technology, large-scale organisations face a mountain of issues to overcome,” said CFP Energy’s COO, Catherine Newman, commenting on the report.     

The survey, commissioned by CFP and conducted by London-based research group 3Gem before the UN’s recent COP29 climate summit in Baku, Azerbaijan, focused on the urgent push to reduce carbon emissions, particularly in Europe, where intensified regulations and steep decarbonisation targets have been announced. In the aviation sector, respondents included airlines, airport operators and associated businesses.  

Central to the survey was the European Union’s ‘Fit for 55’ reform programme, developed to reduce carbon emissions by enacting measures including the EU Emissions Trading System, which since 2012 has imposed ever-increasing limits on emissions from intra-Europe flights.

After Brexit, the UK introduced its own ETS, while France and Germany adopted customised approaches to reach net zero carbon emissions, complicating compliance for airlines operating in these markets.

A key concern for carriers that responded to the survey is the rapid reduction in free carbon allowances, which are due to be phased out in 2026, and both the scarcity and cost of future concessions. Based on 2010 benchmarks, airlines have previously received up to 82% of their carbon allowances for free. But this year they have been reduced by 25%, and next year will come down by 50% before they are abolished and replaced with a full auction system.

As well, the EU is considering expanding its ETS obligations by 2027 to also include non-CO2 emissions such as nitrous oxides and soot, both key elements of warming contrails produced by aircraft in specific conditions and coming under increasing global scrutiny.

The study found 95% of airline respondents in the UK and Europe expected a rise in demand for carbon allowances, but also identified significant barriers to their decarbonisation ambitions, with 61% highlighting funding limitations and 60% the insufficient availability of new technologies to help them reduce their carbon emissions.

As well, 54% of respondents identified knowledge gaps as impediments to reducing emissions, and 53% cited regulatory complexities.

But aviation operators still continued to pursue other decarbonisation technologies and products, the most popular being biofuels (53%) and voluntary carbon markets (51%), followed at 48% by power purchase agreements and green certificates (44%). The industry also indicated significant interest in alternative fuel sources, particularly hydrogen.      

Most respondents to the survey (90%) said they had produced a plan to transition their businesses to net zero operations, through there were marked differences between the UK, Germany and France among those who said they were not meeting targets.

Of total respondents, 13% of those with transition plans were falling short of their targets. In France, 17% said they were underachieving, while in Germany 7% were behind.

“What is most interesting,” said Newman, “are the barriers that industry stakeholders attribute to holding their respective sectors back.

“We hope this report provides business leaders with actionable solutions to tackle decarbonisation amidst volatile conditions. The solutions to decarbonise exist, we simply need to provide better access to them.”

Tim Atkinson, CFP Energy’s Director of Sales and Structuring, said it was vital that businesses focused on changes needed to comply with evolving environmental regulations.  

“It’s encouraging to see many of the survey participants are planning for rises in future ETS carbon prices and taking advantage of the flexibility carbon markets offer to manage rising compliance costs whilst technology challenges are addressed,” he said.

“It has never been more important for businesses to ensure they are prepared for the paradigm shift of tougher targets and higher carbon prices that is set to impact both the UK and EU emissions trading schemes over the next five to 10 years.”

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SITA teams with Arab airlines on developing technology to enhance flight sustainability https://www.greenairnews.com/?p=6214&utm_source=rss&utm_medium=rss&utm_campaign=sita-teams-with-arab-airlines-on-developing-technology-to-enhance-flight-sustainability Wed, 06 Nov 2024 15:18:15 +0000 https://www.greenairnews.com/?p=6214 SITA teams with Arab airlines on developing technology to enhance flight sustainability

Aviation technology group SITA has expanded a partnership with the Arab Air Carriers Organization (AACO) to develop a planning tool which helps airlines reduce aircraft fuel consumption, emissions and operating costs, and more easily comply with complex and increasing environmental regulations. SITA Eco Mission was developed over a year through collaboration with AACO and three of its member airlines to streamline collection and assessment of information which carriers need to report as part of their environmental compliance obligations. Abdul Wahab Teffaha, AACO’s Secretary General, said the product had grown from a need for airlines to manage increasingly complex sustainability requirements, while also providing transparency to both regulators and customers.

“This is a step in the right direction in the journey of airlines’ quest to deliver on their environmental sustainability objectives,” he said.

Added SITA CEO David Lavorel: “As we face unprecedented environmental challenges, achieving sustainability in aviation demands more than compliance. It calls for a visionary approach.”   

The extended collaboration between Geneva-based SITA and AACO, which represents 37 airlines, began late last year when the two signed a Memorandum of Understanding to jointly develop a prototype of a data-driven system enabling carriers to simplify and automate reporting processes to meet their environmental compliance obligations.

The new system was also required to help cut the costs of meeting sustainability requirements, while enabling airlines to plan more efficient operations with lower emissions.

The resulting product, SITA Eco Mission, is a ground-based platform that collects data including flight schedules and fuel information from airlines’ internal systems and other information such as commodity prices and regulatory updates from a wide range of external sources.

The information is then consolidated, assessed and optimised by SITA, and delivered as data-backed insights to the relevant key departments of customer carriers to assist them in meeting their efficiency, financial and sustainability targets.

“The aviation industry remains at a critical crossroads as it works to reduce its carbon footprint and meet global sustainability targets, all while navigating increasing regulatory pressure,” said SITA.

“As the aviation industry adapts to increasingly complex regulations such as the European Union’s ReFuelEU Aviation mandate and ICAO’s CORSIA, airlines must balance emissions reduction with cost management.

“The continued partnership between SITA and AACO is focused on delivering the data-driven solution needed to simplify and automate compliance and reporting, streamline data collection and analysis, reduce the costs associated with becoming more environmentally friendly and help airlines plan their future operations so that they can meet their cost and emission targets.

“More so, the solution will support airlines in moving beyond a tactical, reactive approach, helping with smarter strategic environmental management across three key airline functions – Compliance; Strategy and Finance; and Flight Operations.”

During the past year, SITA collaborated with three AACO member airlines, which it did not identify, working with members of these functions to jointly chart what was required to navigate complicated regulations governing sustainable operations.

SITA then took the airlines’ feedback and worked with a technology user experience team to develop proof of concept for the Eco Mission product, which was taken back to the airlines for feedback and further refinement over several months.

The new planning tool has now been formally launched, and SITA expects global deployment from next year, when the EU will require all jet fuel provided at its airports to include at least a 2% blend of sustainable aviation fuel.

AACO’s Teffaha said the work performed by SITA and his member airlines had delivered a solution “invaluable not only to AACO airlines but also to the airlines of the world. This is a step in the right direction in the journey of airlines’ quest to deliver on their environmental sustainability objectives.”

Added Lavorel: “Together with AACO, we are advancing a solution that tackles these challenges directly, paving the way for a fresh, practical approach to environmental responsibility that moves the industry closer to its goals.”

Meanwhile, key AACO member Qatar Airways has strengthened its sustainability partnership with Brisbane-based Virgin Australia, a commercial ally of which it has announced plans to acquire a 25% stake, subject to regulatory approval.

The airlines have signed a MoU to expand their partnership, enabling them to collaborate on advancing sustainable aviation fuel and low carbon aviation fuel in Australia through measures including exploring certification, production and commercial use of the products.

“This MoU not only further strengthens the strategic partnership between Qatar Airways Group and Virgin Australia, but also cements the shared commitment towards achieving our common objectives in the area of sustainability,” said Qatar’s SVP Aeropolitical and Corporate Affairs, Fathi Atti.

Editor’s note: AACO Secretary General Abdul Wahab Teffaha and Igor Dimnik, VP Product, SITA will be speaking at Aviation Carbon 2024 in London on November 25/26.

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Airbus enters partnerships with airlines Wizz and EVA to help prepare for SAF introduction https://www.greenairnews.com/?p=6168&utm_source=rss&utm_medium=rss&utm_campaign=airbus-enters-partnerships-with-airlines-wizz-and-eva-to-help-prepare-for-saf-introduction Thu, 31 Oct 2024 18:52:07 +0000 https://www.greenairnews.com/?p=6168 Airbus enters partnerships with airlines Wizz and EVA to help prepare for SAF introduction

Airbus is to collaborate with two major airlines, European low-cost operator Wizz Air and full-service Taiwanese international carrier EVA Air, to help each prepare for the imminent introduction of sustainable aviation fuel. The airframer will partner with Wizz Air for SAF-powered trials of Airbus A321neo jets on two key routes, from Barcelona and Brussels Charleroi to the airline’s hub in Budapest, in readiness for the introduction next year of the SAF usage mandates at EU airports under the ReFuelEU plan. Airbus will also work with EVA Air for the next two years to explore multiple ways to help decarbonise the carrier’s flights while also preparing for the introduction of SAF. Their sustainability partnership was announced in Taipei during an event to mark the airline’s order for 33 new Airbus jets.

Like a growing number of carriers, Wizz Air has committed that SAF will comprise 10% of its total jet fuel use by 2030. Its test flights with Airbus, to occur before the end of this year, are designed to help operationally prepare the airline for the EU’s escalating blending mandates, which from next year will require at least 2% of total fuel uplift to be SAF.

Airbus will provide technical guidance and expertise to help maximise the efficient integration of SAF across Wizz Air’s operation while product for the trials will be supplied by Spanish refiner Cepsa and distributed to the departure airports by World Fuel Services, a division of Florida-based energy group World Kinect.

The airline will buy up to 34 metric tons of pure SAF, of which 16 metric tons will be uplifted through blends of up to 5% for the flights from Barcelona-El Prat Airport and 18 metric tons of neat SAF in a 10% blend will be provided at Brussels Charleroi.

The Wizz Air project will be conducted using the mass balancing method, through which SAF use is tracked across an airline’s network and its environmental benefits allocated to specific flights, regardless of where the fuel is physically used, enabling carriers to support SAF production and use globally.

“With this project,” said the airline, “Wizz Air is taking steps to incorporate SAF into its operations, on top of leveraging the fuel efficiency of the Airbus A321neo aircraft, testing the alignment with regulatory frameworks ahead of schedule and working to understand passengers’ awareness of SAF and surrounding policies.”

Yvonne Moynihan, the airline’s Corporate and ESG Officer, said the project demonstrated cross-industry collaboration to reduce aviation’s emissions intensity, while building broader awareness of measures to make air transport more sustainable.

“We are not only testing SAF operations but also gathering insights from our passengers on their awareness of levers to decarbonise aviation,” she said.

Results of the survey will be released publicly, not only to highlight passenger expectations but also to guide the aviation industry in enhancing sustainability efforts.

“Fuel-efficient aircraft and SAF will provide the majority of the emissions reductions our industry needs to make by 2050,” added Julie Kitcher, Airbus’ Chief Sustainability Officer, “which is why working together with partners like Wizz Air to efficiently integrate SAF across airline operations is such an important step.”

Marta Cencillo, Head of Sustainable Aviation for the SAF producer, Cepsa, welcomed the trial flights with WizzAir as “an immediate solution to help decarbonise flights” and “an important initiative to move towards effective emissions reduction ahead of the ReFuelEU mandate.”

The exercise was also a key step in the broader introduction of SAF, added Duncan Storey, World Fuel’s SVP supply and commercial development, EMEA.

“Aligning with the upcoming ReFuelEU aviation requirements is an important milestone in our efforts to expand the availability of sustainable fuels,” he said. “Since 2015, we been actively working to increase the availability of lower-carbon aviation fuels across the globe. Our SAF supply network in Europe includes multiple key locations such as the UK, Germany and France.”

Madrid-based Cepsa is changing its name to Moeve in a phased rollout beginning in November.

“I’m thrilled to announce that a great brand, Cepsa, which has been with us for over 90 years, is transforming and to tell the world that we’re becoming a different type of organisation, Moeve, in which the majority of profits will come from sustainable activities by the end of this decade,” said the company’s CEO, Maarten Wetselaar. “This well-known and collaborative company has rapidly accelerated its transformation over the past two years, reaching multiple milestones outlined in its 2030 Positive Motion strategy. Building on these achievements and those still to come, we are introducing a new brand that reflects our steadfast commitment to leading Europe’s energy transition, particularly in green hydrogen, second-generation biofuels and ultra-fast electric mobility.”

Across the world in Taipei, Taiwan, Airbus inked another sustainability partnership, this time a two-year collaboration with customer airline EVA Air, during an event to celebrate orders by the carrier for 18 long-haul Airbus A350-1000 twinjets and 15 narrowbody A321neo aircraft, which the companies estimate will reduce fuel burn and CO2 emissions by up to 25% compared to earlier model jets.

“The agreement lays the foundation for the two companies to explore over the next 24 months avenues for decarbonisation within EVA Air’s operations, prepare the ecosystem for sustainable aviation fuel adoption and ensure infrastructure readiness,” said the airline.

“These efforts will ensure that we can steadily move towards a net zero future,” added the carrier’s President, Clay Sun.

Airbus Commercial Aircraft CEO Christian Scherer said the planemaker was deepening its collaboration with EVA Air in line with a broader ambition to help decarbonise the aviation sector.

The two companies will study measures needed to prepare for the use of SAF to power commercial flights, as well as establishing procurement processes and managing certification of SAF. Airbus will also evaluate the potential contributions of multiple measures based on EVA’s current and future routes, and its operational practices.

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European aviation players launch Project SkyPower to drive investment in e-SAF and meet EU and UK mandates https://www.greenairnews.com/?p=6157&utm_source=rss&utm_medium=rss&utm_campaign=european-aviation-players-launch-project-skypower-to-drive-investment-in-e-saf-and-meet-eu-and-uk-mandates Wed, 30 Oct 2024 14:28:41 +0000 https://www.greenairnews.com/?p=6157 European aviation players launch Project SkyPower to drive investment in e-SAF and meet EU and UK mandates

A high-profile European coalition has joined forces to urgently advance the production of e-SAF – sustainable aviation fuels produced by combining renewable electricity, water and captured carbon dioxide. Project SkyPower brings together 13 CEOs and more than 50 companies including airlines, airports, energy companies and financiers to push for government policies that enable production of e-SAF from 2030. A report by the new group says Europe has a strong opportunity to capture a big share of the global e-SAF market, which it estimates could be worth €250 billion ($270bn) by 2050 and create up to 90,000 direct jobs. But it argues that to do so will require investments between €15 billion and €25 billion by 2030, encouraged by supportive government policies. Globally, says the report, Europe has 26 of the 31 large-scale e-SAF projects currently proposed. “But while 70% of the global e-SAF project pipeline is located in Europe,” it adds, “no plant has yet reached final investment decision (FID).”

Foundation members of Project SkyPower include Air France-KLM, easyJet, Arcadia eFuels, Copenhagen Airports, private jet service Victor, SAF providers Velocys and SkyNRG, and finance and technology providers including ING, Rockton, Natixis, KGAL and Topsoe. It is co-chaired by Dutch industrialist and former Unilever CEO Paul Polman, and the CEOs of KLM, Marjan Rintel, and Arcadia eFuels, Amy Hebert.

“Project SkyPower’s mission is to pave the way for the first large-scale e-SAF plants in Europe to reach final investment decision by 2025,” says the report, “in order to drive progress towards key regulatory targets, ReFuelEU and the UK mandate.”

To reach those targets and achieve net zero emissions by 2050, the group argues that production of e-SAF must commence by 2030 and continue to develop, initially with strong government support.

Project SkyPower has been convened to promote e-SAF as the most effective and eventually most affordable pathway to low-carbon flight, and to urge governments to introduce policies that reduce investment risk in infrastructure development and fuel production before SAF mandates take effect.  

While e-SAF technology is scaled, the group wants government funding from existing taxes on the aviation industry to bridge the premium between e-SAF and fossil fuels, helping to secure long-term demand and mitigating first-of-a-kind project risk to initially unlock commercial capital.

The Project SkyPower report says e-SAF could deliver lifecycle emissions up to 90% lower than conventional aviation fuels with few feedstock constraints compared to other SAF types.

“Bio-SAF, or SAF produced from biogenic material, offers an affordable and commercially available decarbonisation solution for aviation both in the near and long term,” says the report.

“However, due to the globally limited availability of sustainable biomass feedstock and competing demands from other sectors, bio-SAF alone will not be able to decarbonise the aviation industry. It will need to be complemented by large volumes of e-SAF.”

As well, says the report, e-SAF production is held back by a lack of renewable energy generating capacity, and the need to accelerate development of Direct Air Capture technology for trapping atmospheric CO2.  

Project SkyPower warns that European aviation has less than two years to achieve final investment decisions for e-SAF plants if the fuel is to be available in time to comply with EU and UK SAF blending mandates.

It estimates capital investment of €15 billion to €25 billion ($16-27bn) will be needed by 2030, with a further €3 billion to €5 billion annually to reach the scale needed to meet escalating blending mandates.

“E-SAF needs to reach commercial scale by 2030 and hit market tipping points in the 2030s to reach the scale necessary to enable a lower-emissions aviation industry by 2050,” claims the report.

“It typically takes five years for an e-SAF project between reaching final investment decision and being operational. Therefore, FIDs for e-SAF projects are needed by 2025 to start production by 2030.”

The report says economic modelling performed for Project SkyPower indicates that without government subsidies, the production cost alone of e-SAF in Europe could be five to eight times greater than that of conventional jet fuel, including Emission Trading Scheme costs.

KLM’s CEO, Marjan Rintel, one of the three co-chairs of Project SkyPower, and the Air France-KLM representative in the group, said her company had studied multiple decarbonisation technologies “of which synthetic fuel (e-SAF) is expected to be the most promising in terms of feedstock availability and cost perspective.”

She added: “Project SkyPower is modelling the conditions required to overcome the barriers to scaling e-SAF. By working together, we now have a shared economic model for e-SAF and an action plan to be implemented by the wider aviation ecosystem.”

Another of the group’s co-chairs, Arcadia’s Amy Hebert said: “Successful delivery of Project SkyPower’s action plan will fundamentally change the e-SAF landscape, establishing the necessary conditions to take final investment decisions and accelerate this critical technology towards commercial operation by 2030.” Her company is aiming to activate a new e-SAF plant at Vordingborg, on the Danish island of Zealand, in 2026. The third of Project SkyPower’s co-chairs, Paul Polman, said: “Partnering with governments, financial institutions and civil society is imperative to scale e-SAF to a tipping point where it not only progresses on urgent emissions reduction but also secures millions of jobs and future-proofs the aviation industry.”

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Loganair and Heart partner on UK electric flight, while magniX and NASA unveil US e-test aircraft https://www.greenairnews.com/?p=6038&utm_source=rss&utm_medium=rss&utm_campaign=loganair-and-heart-partner-on-uk-electric-flight-while-magnix-and-nasa-unveil-us-e-test-aircraft Fri, 06 Sep 2024 10:51:58 +0000 https://www.greenairnews.com/?p=6038 Loganair and Heart partner on UK electric flight, while magniX and NASA unveil US e-test aircraft

UK regional airline Loganair is to partner with emerging Swedish aircraft maker Heart Aerospace to explore potential uses for hybrid-electric aircraft. Through their alliance, the two will establish use cases across the airline’s UK network focusing on Heart’s evolving ES-30, a 30-seat aircraft which the company expects to enter service by the early 2030s. The companies will engage with the Scottish and UK governments and airports to advocate the benefits of electric-powered flights, and the airline will join Heart’s industry advisory board, members of which include airlines, airports, aircraft lessors and governments. Meanwhile, in a new test programme in the US involving electric powertrain manufacturer magniX and NASA, two of the four engines on a De Havilland Dash 7 commuter plane will be replaced with electric motors to help evolve hybrid-electric propulsion for use on large turboprop aircraft.          

Glasgow-based Loganair serves a network of more than 30 destinations across the UK and additional points in Ireland, Norway and Denmark with a fleet of 44 aircraft, ranging from nine-seat Britten-Norman Islanders and 19-seat De Havilland Twin Otters to 49-passenger Embraer ERJ jets and 70-seat ATR 72-600 turboprops. The partnership with Heart introduces the ES-30 as a future option, with a fully electric zero emissions range of 200 kilometres, an extended hybrid flying range of 400 kilometres with up to 30 passengers, and capacity to fly up to 800 kilometres with 25 passengers, with all operating settings including typical airline reserves. 

“This is a very exciting and significant moment for Loganair and for the future of sustainable UK regional flying,” said the airline’s CEO, Luke Farajallah. “This exclusive collaboration with Heart Aerospace brings together two organisations who share a passion to see aviation emissions reduce in a realistic and meaningful way, and we definitely see the ES-30 as being a strong contender to emerge as one of the leaders in this space.

“We are very proud of our environmental work and achievements to date, and we see this as the next logical step along the path to a greener future for UK regional aviation.”

He said the airline’s newly appointed Director of Safety and Sustainability, Rebecca Borresen, who commences with the company on 1 October, would be heavily involved in the partnership with Heart.

Simon Newitt, President and CCO of Heart, welcomed the partnership with Loganair. “We’re thrilled to partner with them to bring cleaner air travel to the UK,” he said. “This collaboration is an important step in our mission to make air travel more sustainable and we look forward to bringing clean and convenient solutions to Loganair in support of its ambitious goal to achieve net zero emissions across its operations by 2040.”

In the US, electric propulsion developer magniX has revealed a De Havilland DHC-7 (Dash 7) demonstrator aircraft in special livery as part of NASA’s Electrified Powertrain Flight Demonstration programme (EPFD) to support the introduction of both battery electric and hybrid electric aircraft into commercial fleets by 2030.

The Everett, Washington-based magniX has been progressing the project since 2021 when it secured a $74.3 million contract from NASA and is leading the conversion of the four-engine Dash 7 from Canadian operator Air Tindi to a testbed for electric motors.

Initially, magniX will replace one of the Dash 7’s turbine engines with a magni650 electric propulsion unit, with a second to follow in the next stage of the programme. They will be powered by a large battery energy storage system.

In February magniX achieved the Preliminary Design Review, which established the design for the installation of electric powertrains on the Dash 7, and in April a magni650 electric engine completed the first phase of testing at NASA’s Electric Aircraft Testbed (NEAT) facility in Ohio. Baseline tests were then performed with the aircraft to generate performance data ahead of the installation of the magniX electric powertrains.

“As EPFD makes outstanding progress, magniX and NASA are proving the feasibility of electric propulsion for commercial flight,” said magniX CEO Reed Macdonald. On a typical regional flight in the US, extending about 200 miles (322 kilometres), the company estimated that a hybrid aircraft would achieve fuel savings of up to 40%.

Ben Loxton, magniX VP of the EPFD programme and Electric Storage Systems, said the project with NASA would also demonstrate that sustainable flight was achievable using existing aerospace technology. “The programme is accelerating its readiness for entry into service, prioritising safety and the highest standards of performance.”

Robert Pearce, Associate Administrator of NASA’s Aeronautics Research Mission Directorate, said EPFD would not only deliver more sustainable aviation, but also greater air transport access to more communities in the US. “Hybrid electric propulsion on a megawatt scale accelerates US progress toward its goal of net zero greenhouse gas emissions by 2050,” he said, “benefiting all who rely on air transportation every day.”

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Haffner Energy in biogenic carbon deal with IdunnH2 for Icelandic e-SAF facility https://www.greenairnews.com/?p=6034&utm_source=rss&utm_medium=rss&utm_campaign=haffner-energy-in-biogenic-carbon-deal-with-idunnh2-for-icelandic-e-saf-facility Wed, 04 Sep 2024 11:50:32 +0000 https://www.greenairnews.com/?p=6034 Haffner Energy in biogenic carbon deal with IdunnH2 for Icelandic e-SAF facility

French biomass to clean fuels technology company Haffner Energy has signed an agreement with Icelandic green hydrogen startup IdunnH2 to provide biogenic carbon for a 65,000 tonnes per year e-SAF facility located near Keflavik International Airport that IdunnH2 is developing. To create e-SAF, the facility will combine green hydrogen from Iceland’s renewable power grid with biogenic carbon from Haffner Energy’s patented biocarbon gasification technology. While the country has good access to renewable power, sourcing recycled carbon, ideally from a biogenic source, is a challenge as it is a costly gas to capture, transport and store. Haffner’s innovation supplies solid biocarbon – also known as biochar, a byproduct of its biomass thermolysis technology – and gasifying it onsite, which the company claims fundamentally changes the costs of e-SAF production.

“Biocarbon is far easier and cheaper to transport and store than CO2, which will make many e-SAF projects economically viable,” commented the company’s co-founder and CEO Philippe Haffner.

Added Marcella Franchi, Head of SAF at Haffner Energy: “We are excited to embark on this e-SAF project with IdunnH2 in Iceland, an ideal location for competitive hydrogen production. This agreement bridges the technological and geographical gap, paving the way for competitive e-SAF production with innovative technology.”

IdunnH2’s 300MW e-SAF facility in Helguvik is scheduled to start production in 2028, with green hydrogen coming from wind, geothermal and hydropower, and the SAF blended onsite with conventional jet fuel.

The partners say the production aligns with the EU’s SAF mandate and will supply the equivalent of 15% of Iceland’s projected total jet fuel demand in 2028 and allow airlines at Keflavik Airport to exceed the 2030 blending requirement. Icelandair has already committed to using up to 45,000 tonnes of SAF from the facility.

“The agreement with Haffner Energy will help us direct Iceland’s renewable power onto its aircraft fleet, to not only decrease emissions but also reduce the country’s import dependence, improve air quality around Keflavik Airport and bolster energy security,” said IdunnH2’s co-founder and CEO Audur Nanna Baldvinsdóttir.

Haffner Energy’s biomass thermolysis technological process produces renewable gas, renewable hydrogen and renewable methanol, as well as converting organic waste into sustainable aviation fuel. Its SAFNOCA technology allows the conversion of solid biomass residues or wastes into hydrogen-rich syngas that can be processed through the alcohol-to-jet (ATJ) or Fischer-Tropsch pathways.

The company is using its biomass agnostic technology to develop its own SAF production project at Paris-Vatry Airport, which will have an initial capacity of 30,000 tonnes of SAF per year, with the potential to triple future production. In June, it announced a collaboration with LanzaJet under which syngas produced by SAFNOCA will be converted into ethanol using LanzaTech’s carbon recycling technology and then into SAF using LanzaJet’s ATJ technology.

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EcoCeres signs European SAF storage deal with Evos, while Holborn selects Topsoe for German SAF https://www.greenairnews.com/?p=5985&utm_source=rss&utm_medium=rss&utm_campaign=chinas-ecoceres-signs-european-saf-storage-deal-with-evos-while-holborn-selects-topsoe-for-german-saf Mon, 26 Aug 2024 14:45:20 +0000 https://www.greenairnews.com/?p=5985 EcoCeres signs European SAF storage deal with Evos, while Holborn selects Topsoe for German SAF

EcoCeres has partnered with Evos, a major liquids and chemical storage group, to increase supplies of sustainable aviation fuel in Europe. Hong Kong-based renewable fuels producer EcoCeres has just shipped from China 10 million litres of sustainable blending component to the Evos storage facility in Ghent, Belgium, one of Europe’s largest and fastest-growing SAF storage terminals. The HEFA-SPK product, developed from waste fats and oils, was produced at the EcoCeres processing plant in Jiangsu Province, eastern China, which the company says has been recognised by the International Sustainability and Carbon Certification (ISCC) – Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), accreditations which enable sale of the product in Europe. Meanwhile, Denmark’s Topsoe has been selected to support the Holborn renewable fuels complex, which is due to begin operations in Hamburg, Germany, early in 2027, with capacity to produce 220,000 tonnes of SAF and renewable diesel per year.

EcoCeres, which is backed by international investors Bain Capital and Kerogen Capital, produces hydrotreated vegetable oil (HVO) from waste grease and animal fats which can then be processed into SAF. The company’s Zhangjiagang renewable fuel refinery in Jiangsu Province, north of Shanghai, has capacity to produce up to 350,000 tonnes of HVO and SAF per year. A second plant is under construction in Johor, Malaysia, that will produce SAF, HVO and renewable naphtha, and expand the company’s annual production capacity by up to 400,000 tonnes. EcoCeres says it is currently serving a number of international airlines and their jet fuel suppliers directly.

The partnership with Evos integrates the EcoCeres product into Europe’s SAF supply chain at a time of rapidly increasing demand, ahead of the EU’s SAF blending mandate starting next year. Evos is a key infrastructure provider to the renewable fuels sector, with combined storage capacity for 6.4 million cubic metres of liquid energy and chemical supplies at terminals in Ghent, Amsterdam, Rotterdam, Hamburg, Malta and Algeciras, Spain.

In January 2023 the Ghent terminal provided the first delivery of SAF through the NATO Central European Pipeline System (CEPS) to Brussels Airport and is now repurposing infrastructure in Ghent and Amsterdam to help accommodate soaring demand for SAF blending.

“We are thrilled to announce this collaboration with Evos, a well-established player with access to critical EU infrastructure,” said EcoCeres CEO James Ni. “It allows the repurposing of existing infrastructure, securing green jobs and providing our customers with an easy choice between fossil jet fuel and SAF.”

Evos CEO Harry Deans welcomed the collaboration with EcoCeres as part of broader efforts by the energy and aviation sectors to help decarbonise air transport. “Evos is proud to partner with EcoCeres and support the global transition to lower-carbon aviation,” he said. “This is a significant milestone for Evos Ghent and it enables further decarbonisation of the aviation supply chain.”

In Germany, Holborn Europa Raffinerie, an emerging producer of SAF and renewable diesel, has chosen Danish company Topsoe to provide technology to enable the conversion of waste and residue materials to low-carbon fuels.

Holborn, which already produces fuels and heating oils at its Hamburg refinery for that city and other parts of northern Germany, will use Topsoe’s HydroFlex conversion technology to additionally produce up to 220,000 tonnes of SAF and renewable diesel per year from early 2027. It will produce the SAF and HVO within the existing facility.

“Our complex in Hamburg is at the forefront of our commitment to implement the energy transition,” said the refiner’s CEO Lars Bergmann. “As such, it is vital we bring in the best technology to deliver on the high standards and specifications required for the project. Holborn is very pleased to sign this agreement with Topsoe, who are proven market leaders and whose technology is vital for processing our feedstock requirements.”

“To support the energy transition, we need a cleaner long-distance transport sector,” added Elena Scaltritti, Topsoe’s CCO. “A key step in securing this is by increasing production of SAF and renewable diesel. Holborn is spearheading the rollout of SAF in northern Europe through its Hamburg plant and we are proud to be part of this process. We look forward to delivering our technology and continue working with Holborn to accelerate the uptake of SAF in Europe and globally.”

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Shell takes a potential billion dollar hit over decision to pause SAF facility construction https://www.greenairnews.com/?p=5902&utm_source=rss&utm_medium=rss&utm_campaign=shell-takes-a-potential-billion-dollar-hit-over-decision-to-pause-saf-facility-construction Wed, 10 Jul 2024 16:07:59 +0000 https://www.greenairnews.com/?p=5902 Shell takes a potential billion dollar hit over decision to pause SAF facility construction

Shell has revealed it will take a financial hit of between $600 million and $1 billion from pausing construction of its biofuel plant in Rotterdam that was designed to produce 820,000 tonnes of biofuels a year, split between sustainable aviation fuels and renewable diesel, from used cooking oil and animal fats. First announced in September 2021, the former Pernis refinery at the Shell Energy and Chemicals Park Rotterdam was expected to open this year and be one of the biggest facilities in Europe producing fuel from waste. The oil major has cited difficult current market conditions for biofuels in Europe due to oversupply, cheap imports and lower than expected growth in demand for biodiesel. Technical problems had already led to delays in the project’s construction. Former Shell Aviation President Jan Toschka left the company earlier this year to join a new SAF venture, Zaffra, located in Amsterdam. Meanwhile, a new Dutch SAF feedstock startup Green Air Fuel Technology (GAFT) is on a fund-raising round to help develop its novel process.

Back in 2021, Shell said it was aiming to produce 2 million tonnes of SAF by 2025, and for SAF to make up 10% of its global aviation fuel sales by 2030. As part of its Powering Progress strategy, the company planned to transform its refineries into five energy and chemical plants, reduce the production of traditional fuels by 55% by 2030 and provide more low-carbon fuels, including for aviation. The Rotterdam project was said by the company to require “hundreds of millions of dollars of investment each year during construction.”

Announcing the decision to “temporarily pause” construction, Shell said it would “address project delivery and ensure future competitiveness given current market conditions.”

Added Huibert Vigeveno, Shell’s Downstream Renewables and Energy Solutions Director: “[This] will allow us to assess the most commercial way forward for the project. We are committed to our target of achieving net zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy to help us and our customers profitably decarbonise. And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”

Dogged by technical difficulties, Shell said earlier this year the Rotterdam facility would be operational in the latter part of the decade. Just prior to announcing plans for the Rotterdam facility in 2021, Shell pulled its commercial and technical support, as well as passing up an equity share option, in the Velocys Altalto municipal waste to jet fuel project in north-east England. Shell said it had “decided to focus our resources on other lower-carbon fuels opportunities which leverage our own technology.”

In 2019, Shell also announced technical and commercial support for developing a SAF project led by SkyNRG to construct a production plant in Delfzijl, Netherlands, capable of producing 100,000 tonnes of SAF annually. Originally planned for commissioning in 2024, the project has so far not progressed.

Two years ago, Shell Aviation joined with Accenture and Amex GBT to launch the Avelia book-and-claim programme that enables corporations to verifiably purchase SAF to compensate for the emissions created when their employees fly on company business.

Elsewhere in the Netherlands, GAFT is developing a proprietary process in which waste feedstock, or synthetics, can be fermented to produce a batched process HEFA replacement that can be used in conventional refining facilities for SAF. Having received EU funding of €2.5 million to accelerate its technology, GAFT is now on a fund raise to aid the development of a first-of-a-kind plant and is involved in trial projects using its electrolysis units in Denmark and Romania.

The company says with a prospective HEFA feedstock squeeze expected by 2030, it can provide SAF producers with an economical, alternative feedstock that has no fossil fuel or food origin.

“In Europe and globally, the HEFA feedstock volumes cannot keep pace with new SAF production volumes. GAFT brings best available technology components together with unique patents for a first-of-a-kind, future-proof SAF feedstock plant,” said Frank Schreurs, Chief Executive of GAFT. “Our technology tackles the HEFA feedstock shortage to meet the rapidly increasing SAF market demand and we are working with our partners to bring forward our first deployment in the coming year.”

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Lufthansa Group introduces environmental surcharge to cover SAF and emissions regulations https://www.greenairnews.com/?p=5896&utm_source=rss&utm_medium=rss&utm_campaign=lufthansa-group-introduces-environmental-surcharge-to-cover-saf-and-emissions-regulations Fri, 05 Jul 2024 13:22:04 +0000 https://www.greenairnews.com/?p=5896 Lufthansa Group introduces environmental surcharge to cover SAF and emissions regulations

The Lufthansa Group has introduced an environmental cost surcharge on all tickets issued from June 26 with departure from 1 January 2025 on flights from the 27 EU countries as well as the UK, Norway and Switzerland. The amount of the surcharge varies between 1 euro and 72 euros ($1.08 – $78), depending on the flight route. It is intended to partly cover “the steadily rising additional costs due to regulatory environmental requirements.” Specifically, Lufthansa cites the impact of the ReFuelEU sustainable aviation fuel statutory blending quota to be introduced for departures from EU countries from January next year, adjustments to the EU Emissions Trading System (EU ETS) and costs of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Luis Gallego, the CEO of International Airlines Group (IAG), which owns British Airways, Iberia and Aer Lingus and other European carriers, has told The Times that EU mandated net zero targets and the switch to SAF will push up air fares and have a big impact on demand.

In a statement, Lufthansa Group said it was investing “billions in new technologies every year” and was working with partners on innovations to help make flying more sustainably, and had actively supported global climate and weather research for many years.

“However, the airline group will not be able to bear the successively increasing additional costs resulting from regulatory requirements in the coming years on its own,” it said.

The EU SAF blending quota starts at 2% from 2025, 6% from 2030, 20% from 2035 and 70% from 2050. “For the Lufthansa Group, this will lead to additional costs in the billions in the future,” said the group, which includes Lufthansa, SWISS, Austrian Airlines, Brussels Airlines and Eurowings.

SAF accounted for around 0.2% of the group’s total fuel requirements in 2023, which it says makes it one of the largest SAF customers worldwide.

IAG’s Gallego, reported The Times, said the cost of compliance with the EU’s “demanding” targets could make European airlines less competitive and decarbonisation should be done in a consistent way worldwide that did not jeopardise European aviation.

IATA Director General Willie Walsh has already warned the SAF cost premium would lead to higher air fares. At its recent AGM in Dubai, IATA reported SAF production could rise to satisfy 0.53% of global demand for jet fuel in 2024 at a cost of $3.75 billion to airlines, representing an additional $2.4 billion to what it would cost to purchase the same quantity of conventional jet fuel. It estimated CORSIA-related costs would account for a further $600 million in 2024.

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