Category Archives: SAF

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Airlines rarely switch to sustainable fuels, report says (SAF)

Only 10 of the world’s 77 airlines have made significant progress in transitioning to truly sustainable aviation fuels (SAF), while 87 per cent have failed to take this step, according to a newly released ranking by Transport & Environment (T&E).

The majority of companies are underperforming in their use of sustainable fuels, or even failing to incorporate SAF into their carbon reduction programmes at all.

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Phillips 66 feedstock for United Airlines SAF

Phillips 66 announced on 5 December that it has signed an agreement with United Airlines for Phillips 66 to supply sustainable aviation fuel (SAF) to United Airlines at Chicago’s O’Hare International Airport (ORD) and Los Angeles International Airport (LAX), helping to advance the development of low-carbon fuels in Illinois and California.

Phillips 66 will supply 3 million gallons of SAF to United Airlines for use at ORD.

The agreement includes the possibility of increasing the supply to 8 million gallons by the first half of 2025.

Phillips 66 will deliver an initial 600,000 gallons of SAF to United Airlines at Los Angeles International Airport by the end of 2024.

 

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ADB to finance $86.2m for Pakistan’s SAF plant

The Asian Development Bank (ADB) and SAFCO Venture Holdings Limited (SAFCO) signed a landmark $86.2 million financing package to finance the construction and operation of a Sustainable Aviation Fuel (SAF) facility in Sheikhupur, Pakistan, the first private sector-led SAF initiative in Asia and the Pacific.

The financing consists of $41.2 million from ADB’s Ordinary Capital Resources (OCR) and a $45 million syndicated loan, including a Category B loan from the Emerging Africa and Asia Infrastructure Fund (EAIF). The Emerging Africa and Asia Infrastructure Fund (EAIAF) is PIDG’s emerging markets infrastructure debt fund managed by NinetyOne and ILX, an Amsterdam-based emerging markets asset manager specialising in the Sustainable Development Goals (SDGs) and climate private debt strategies. The International Finance Corporation (IFC) provided a syndicated parallel loan. ADB acted as lender of record for the category B loan and served as the trustee lead arranger and bookrunner for the financing programme.

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New DG Fuels SAF plant to be built in Nebraska

company has been awarded a contract by DG Fuels to provide early engineering, licensing, and the Process Design Package (PDP) for a state-of-the-art SAF plant in Nebraska, USA.

The project will leverage MyRechemical’s proprietary NX Circular™ gasification technology, a cutting-edge solution designed to convert residual biomass into high-value SAF. With an expected annual production capacity of 450 million liters, the facility is poised to become a significant contributor to the global push for decarbonized aviation.

Scheduled to be operational by 2029, the plant represents a major step in reducing the aviation sector’s carbon footprint. By utilizing residual biomass as its primary feedstock, it underscores a commitment to circular economy principles while offering a scalable model for future SAF facilities.

This partnership between MAIRE, MyRechemical, and DG Fuels reflects the growing demand for innovative technologies to address the challenges of sustainable energy transitions. The Nebraska plant is expected to set new benchmarks in efficiency, sustainability, and the practical implementation of advanced gasification technology.

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Solarig announces the development of the SAF project in Teruel

Solarig announced on 22 November that it is moving forward with the development of a sustainable aviation fuel (SAF) project that will produce more than 400,000 tonnes of SAF per year in Spain.

Specifically, Solarig announced on 22 November the development of an SAF project in Teruel.The project, called Turboleta SAF, will have an annual SAF production capacity of more than 75,000 tonnes, equivalent to 33,000 flights between Zaragoza and London (based on a 50% SAF blend).

Construction of the plant, which will be located on approximately 10 hectares of land in the Platea Industrial Park in Teruel, is scheduled to begin in 2027 and is expected to be operational by 2030.

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UK SAF mandatory policy to come into force from New Year’s Day

The UK SAF mandate has been signed into law and will come into effect on New Year’s Day.

The SAF obligation will start at 2 per cent of the UK’s total aviation fuel requirements and increase linearly to 10 per cent by 2030 and then to 22 per cent by 2040.

From 2040, the obligation will remain at 22 per cent until SAF supply becomes more certain.

The mandate will encourage innovation in advanced fuels that produce greater emission reductions and diversification of feedstocks to reduce dependence on scarce resources by including the following in the mandate:

– A cap on the feedstock used in the Hydrogenated Ester and Fatty Acid (HEFA) process, but not until other types of SAF are also commercially viable to recognise the important role that HEFA SAF will play in the 2020s. Under this provision, HEFA supply would not be constrained in the first two years, falling to 71 per cent in 2030 and still contributing 35 per cent in 2040.

– A separate obligation for power-to-liquid fuels from 2028 would amount to 3.5 per cent of total aviation fuel requirements by 2040.

The provision will include buyout mechanisms for both the primary obligation and the power-to-liquid obligation to incentivise supply while protecting consumers in the event that suppliers are unable to secure SAF supplies.

These will be set at £4.70 (€5.60) and £5 (€6) per litre of fuel respectively. This provides a significant incentive for fuel suppliers to supply SAF to the market rather than pay buyout fees. They also set a maximum price for the scheme, so emissions reductions were achieved at an acceptable cost.

The scheme includes a review mechanism to help minimise the impact on passenger fares.

We will also work closely with the Government to secure the supply of feedstock to ensure it is used in a sustainable and efficient way.

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Unite UK submits SAF transition plan to Energy Minister

Unite, the UK’s largest trade union representing Grangemouth workers, has written to Energy Secretary Ed Miliband demanding action against Grangemouth.In September, Petroineos, the owner of Grangemouth, announced plans to shut down Scotland’s only refinery in the second quarter of 2025, which will result in the loss of more than 400 direct jobs. The closure will also result in the loss of thousands of jobs in the company’s supply chain.

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DHL and Shell agree to supply 25,000 tonnes of SAF to Brussels in one year

November 22 – DHL Express and Shell have signed an agreement to boost sustainable airfreight at Brussels Airport.

The one-year agreement includes the delivery of 25 kt of SAF by pipeline to Brussels Airport.

The SAF used is certified under ISCC’s voluntary certification system ‘ISCC Plus’ and is expected to reduce greenhouse gas emissions by 80 kt CO2e compared to fossil aviation fuels.

It is produced at a fossil refinery using renewable feedstocks (co-processed SAF) instead of fossil crude oil and will be used to provide emissions-reducing air transport services to DHL Express customers through DHL GoGreen Plus.

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HSBC funds 3,400 metric tons of sustainable fuel for Cathay Pacific

HSBC Hong Kong, Cathay Pacific Airways (293) and Eslite have announced that HSBC will purchase approximately 3,400 metric tons of sustainable aviation fuel for refueling Cathay Pacific flights departing from Hong Kong International Airport. The purchase is expected to reduce carbon emissions by up to 90% compared to conventional aviation fuels, and promote the development of sustainable aviation fuels in Hong Kong.

HSBC Hong Kong has signed a one-off purchase agreement for approximately 3,400 metric tons of sustainable aviation fuel produced by Eslite for use in refueling Cathay Pacific flights departing from Hong Kong International Airport. According to the International Sustainability and Carbon Certification (ISCC), Eastlake’s sustainable aviation fuel is produced 100% from biomass waste and is estimated to reduce carbon emissions by up to 90% compared to conventional aviation fuel.

Notably, the sustainable jet fuel is produced from waste cooking oil from a traceable source, which is estimated to reduce lifecycle carbon emissions by approximately 11,800 metric tons compared to the same amount of conventional jet fuel, equivalent to approximately 10,000 Economy Class journeys on a round-trip Cathay Pacific flight between Hong Kong and London.

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Bangchak and Shell sign SAF supply agreement

Thailand-based Bangchak announced on 12 November that they have entered into a Sustainable Aviation Fuel (SAF) supply agreement with Singapore-based Shell International Orient Trading.

The agreement provides for the delivery of ISCC EU/CORSIA certified SAF to Shell.

SAF is a jet fuel that replaces fossil fuels and can help significantly reduce emissions from flight.

It is a key lever in achieving the International Civil Aviation Organisation’s 2050 goal of net-zero carbon emissions from international aviation.

This co-operation and supply arrangement between Bangchak and Shell is a further step in advancing the use of SAF.

Bangchak, Thailand’s SAF industry leader, launched its initial SAF manufacturing business plan in September 2022.

The company is constructing a manufacturing facility in Bangkok, which will have a capacity of 1 million litres of SAF per day using waste cooking oil as the primary feedstock.

Commercial operations are expected to commence in the second quarter of 2025.