Sustainable Aviation Fuel Digest for 2/4

Newsflow

SAF Adoption and Infrastructure Development:

• Budapest Airport: VINCI Airports has successfully implemented SAF capabilities at Budapest Airport, achieving ISCC EU certification, demonstrating a practical step toward the mandatory 2% SAF usage requirement by 2025. The CEO of Budapest Airport, Francois Berisot, stated, “The availability of sustainable aviation fuel at Budapest Airport is a very important milestone and will greatly contribute to the future reduction of Budapest Airport’s indirect carbon emissions from its corporate value chain activities.”
• Avfuel: Avfuel has expanded its SAF distribution network in the US, establishing new supply terminals in Linden, New Jersey, Pasadena, Texas and Port Everglades in Florida. This demonstrates a geographic diversification beyond the western US.
• Joramco: Joramco’s investment in DHL’s GoGreen+ program to adopt SAF shows that broader aviation industry sectors beyond airlines (like MRO) are now exploring SAF.

Policy and Regulatory Landscape:

• UK Mandate: The UK government has introduced a mandate for SAF, starting at 2% this year and rising to 22% by 2040. However, projections indicate that fossil fuels will still dominate jet fuel consumption, with only 22% SAF by 2040. This discrepancy highlights a tension between policy goals and the projected availability/usage of SAF, raising concerns about the pace of the transition.
• EU Policy Needs: Europe’s aviation industry is calling for urgent policy action to scale up SAF production within the EU. A report by ICF, commissioned by several industry bodies, warns of potential risks if SAF production isn’t accelerated, including higher consumer costs and lost jobs. The report recommends financial incentives, risk-sharing mechanisms, and prioritization of feedstocks. This indicates a strong reliance on supportive policies to reach meaningful SAF adoption.

SAF Accounting and Reporting:

• IATA Methodology: The International Air Transport Association (IATA) has released a methodology for accounting and reporting the emissions reductions from SAF. This methodology, along with the IATA SAF Registry scheduled for launch in April 2025, aims to create a standardized global system for tracking SAF benefits. Marie Owens Thomsen, IATA’s SVP Sustainability, noted, “The IATA methodology will provide a consistent approach to accounting for the environmental benefits of SAF purchases, regardless of location… The transparency of a published global standard methodology will give confidence that the Registry is robust and fair, with no double-counting.” This standardized approach is crucial for building trust and transparency in the SAF market.

SAF Production and Technological Innovation:

• Norsk e-Fuel: Investment into Norsk e-Fuel by Prime Capital highlights the growth and increasing financial backing of the e-fuel sector. Norsk e-Fuel aims to industrialize e-fuel production, targeting 200,000 tons of e-Fuel by 2032. Karl Hauptmeier, CEO of Norsk e-Fuel, said, “This partnership represents a significant milestone not only for our company but also for the advancement of the e-Fuel industry… The investment enables us to accelerate the development of our projects”.
• Jord and Votion: A partnership between Jord and Votion Biorefineries to convert C4-grass biomass into biocrude and SAF emphasizes the exploration of alternative feedstocks and biorefining technologies. This collaboration aims to accelerate the use of advanced biofuels.

Feedstock Diversification:

• Multiple sources mention SAF derived from various sources like waste cooking oil, agricultural residues and C4-grass biomass. This signals the importance of diversification of SAF production methods in ensuring that growing demand is met in a sustainable manner.

Top Quotes

• Francois Berisot, CEO of Budapest Airport: “Sustainable aviation fuel emits about 80% less carbon dioxide compared to conventional kerosene and can therefore make a significant contribution to the decarbonization of the aviation industry.”
• Marie Owens Thomsen, IATA’s SVP Sustainability: “The IATA methodology will provide a consistent approach to accounting for the environmental benefits of SAF purchases, regardless of location… The transparency of a published global standard methodology will give confidence that the Registry is robust and fair, with no double-counting.”
• Karl Hauptmeier, CEO of Norsk e-Fuel: “This partnership represents a significant milestone not only for our company but also for the advancement of the e-Fuel industry… The investment enables us to accelerate the development of our projects”