New alliance formed to produce SAF at scale

A new alliance has been formed by Honeywell, Samsung E&A, Johnson Matthey, and Gidara Energy to develop end-to-end production of Sustainable Aviation Fuel (SAF) from biomass and municipal solid waste. The group will draw on their respective strengths: Gidara’s proficiency in gasification and syngas production for feedstock transformation; Johnson Matthey’s expertise around advanced catalysts and technology for syngas to fuels; Honeywell's process technology and digital automation solutions; and Samsung E&A's global expertise in engineering, procurement, construction and project management.

The aim of the alliance is to streamline the SAF production chain, reducing development time and associated costs, from feedstock to final product. By combining their resources, the partners expect to cut the time from feasibility studies to plant startup by over 15% and lower capital costs by up to 10%. They plan to offer the solution globally, noting that as the SAF industry faces limits on traditional feedstocks, this production method will become increasingly important. The IEA (International Energy Agency) recently reported that biofuels produced from waste and non-food energy crops will meet more than 40% of total biofuel demand by 2030[i].

"The launch of our innovative end-to-end SAF alliance demonstrates the power of collaboration to address the world's energy demands," said Ken West, President and CEO, Honeywell Energy and Sustainability Solutions. "As demand for SAF increases, the technology to expand available feedstock options becomes increasingly vital. This comprehensive alliance provides refiners with a strategic approach to quickly execute their vision."[ii]

SAF mandates come into play, as viability is questioned

SAF is set to become an increasingly important element in the transition to greener aviation. Classed as a ‘low-carbon fuel’, it is viewed as an alternative to more traditional jet fuel. To encourage its uptake several markets have now introduced mandates, including the EU and the UK.

Starting from 1^st January this year, “every flight leaving the larger EU airports, will carry a minimum amount of SAF, no matter whether the airline is an EU airline or not”[iii] as of 2025 this proportion sits at 2%, and will reach 5% in 2030. To meet the EU’s climate objectives, it is expected that by 2050, at least 63% of all aviation fuel used for flights departing from EU airports should be SAF.

In the UK, the SAF mandate stood at 2% of total UK jet fuel demand for 2025, with this set to increase to 10% in 2030, and then 22% in 2040. From 2040 onwards, the obligation will remain at 22% of total UK jet fuel demand until there is greater certainty regarding SAF supply. The UK government believes that its SAF Mandate could deliver up to 6.3 megatonnes of carbon savings per year by 2040[iv].

In November 2023, Virgin Atlantic operated the first world’s first transatlantic flight flown on 100% SAF by a commercial airline, yet since then SAF has only grown to represent circa 0.3% of global jet fuel use. Production last year reached 1Mt (1.250 billion litres) double 2023 and is expected to double again in 2025 to hit 2Mt, or 0.7% of global jet fuel use.

Recently, airline association Iata criticised the SAF mandates introduced in the UK and EU, arguing shortcomings in the policies “put SAF production at risk”[v]. In a statement Willie Walsh, IATA’s Director General, said:

“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs. And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate,”[vi]

Iata argue that the cost of SAF to airlines has now doubled in Europe due to compliance fees that SAF producers or suppliers are charging. They claim that for the expected one million tonnes of SAF that will be purchased to meet the European mandates in 2025, the expected cost at current market prices is $1.2 billion. In addition, Iata state that compliance fees are estimated to add an additional $1.7 billion on top of market prices—an amount that could have abated an additional 3.5 million tonnes of carbon emissions. They argue that instead of promoting the use of SAF, Europe’s SAF mandates have made SAF five times more costly than conventional jet fuel.

Walsh added: “This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonization. Raising the cost of the energy transition that is already estimated to be a staggering $4.7 trillion should not be the aim or the result of decarbonization policies. Europe needs to realize that its approach is not working and find another way,”[vii]

Environmental concerns persist

In addition, concerns continue to be raised around the environmental impacts of SAF, these range from deforestation and removal of agricultural land from food production, to energy demands which could divert renewable power from other uses.

A report from the Royal Society in 2023 found that significant resource implications are associated with bio-based approaches to SAFs, particularly for energy crops, whose cultivation would necessitate using at least half of all agricultural land in the UK to supply all of the jet fuel consumed in the UK on an annual basis[viii].

Further, in the maritime industry, shipping companies and NGOs recently called on the IMO (International Maritime Organization) to exclude biofuels from its list of green alternatives to traditional fossil fuels. They highlighted that several countries including France, Norway and the Netherlands had already restricted or stopped using palm and soy biofuels domestically, while the EU itself has excluded the use of food crops from its flagship shipping fuels regulation. Yet, they note that at the global level no such restrictions are proposed.

They argue that unless legally binding safeguards are introduced, there is a risk that fossil fuels will be replaced with ‘unsustainable biofuels’, noting that in 2009 the EU’s push towards biofuels led to consumption of palm oil-based biofuels doubling between 2010 and 2020[ix]. Scientific evidence, they claim, later demonstrated that 45% of palm oil expansion happened at the expense of carbon rich ecosystems like forests or peatlands over that same period. Similar findings have been uncovered for other crop-based feedstock such as soy, they suggest[x].

References

[i] HONEYWELL, JOHNSON MATTHEY, GIDARA ENERGY AND SAMSUNG E&A FORM SAF TECHNOLOGY ALLIANCE

[ii] Ibid

[iii] Fit for 55 and ReFuelEU Aviation | EASA

[iv] Sustainable Aviation Fuel (SAF) Mandate - GOV.UK

[v] IATA - Policy Shortcomings Puts SAF Production at Risk

[vi] IATA - Policy Shortcomings Puts SAF Production at Risk

[vii] Ibid

[viii] The Royal Society’s new report questions as they look at the resource requirements and environmental impacts

[ix] International Maritime Organization urged to avoid biofuels push over fears it could impact food security & harm the environment

[x] EUR-Lex - 52019DC0142 - EN - EUR-Lex

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