FAS, the new green gold for airlines

With production starting up, orders coming in from airlines and refuelling stations at airports, the development of SAF - the sustainable aviation fuel needed to decarbonise the industry - is gathering pace.
The Finnish producer Neste, one of the main players in the development of SAF, sustainable aviation fuel.
The Finnish producer Neste, one of the main players in the development of SAF, sustainable aviation fuel.

Slow to get off the ground, the production of sustainable air fuel is gaining momentum in the face of growing demand from companies and, above all, the prospect of more stringent regulations on its incorporation into aircraft. With a 65 % reduction in CO2 compared with paraffin for current fuels and -88 % for synthetic fuels, SAF - for "sustainable aviation fuel" - is one of the keys to the sector's energy transition. Bernard Pinatel, Managing Director of TotalEnergies' Refining & Chemicals division, sees this solution as "a key element in the sector's energy transition". the most effective way of immediately reducing CO2 emissions from air transport.

Under the European ReFuelEU Aviation regulation, the proportion of FAS currently produced from waste oils, biomass or animal fat residues has been set at 2 % in 2025 and 6 % in 2030, before being stepped up to reach 32 % in 2040 and 63 % in 2050. This acceleration will be made possible by the technological maturity of e-fuels, sustainable synthetic fuels produced from decarbonised electricity and hydrogen. Some countries are going even further, such as the United Kingdom, which will require the incorporation of 10 % of SAF from 2030.

But while the European Union and other states have set obligations for companies, the infantry still needs to follow suit. This is particularly true in France, which is lagging behind other countries such as the United States. During a FNAM round table at the beginning of the yearThe French air transport industry was concerned about this and called on the government to ensure the development of this essential sector. " To decarbonise the aviation sector, it is essential to develop, produce and distribute sustainable fuels. at affordable prices and in sufficient quantity to supply airlines" said Javier Sanchez-Prieto, CEO of Iberia.

TotalEnergies platform in Grandpuits, Seine et Marne.

TotalEnergies took part in Connecting Europe Days last June, fuelling 11 low-carbon flights at Lyon Saint-Exupéry airport, and now the oil company is aiming to become a major player in sustainable air fuel. At the end of September, TotalEnergies and SARIA, which specialises in the collection and recycling of organic matter, signed an agreement to develop this solution. on the Grandpuits platform in Seine-et-Marne. A former refinery, converted as part of a "zero oil" project, which will have a sustainable air fuel production capacity of 210,000 tonnes per year, i.e. 25% more than the initial project announced in 2020.

One thing is certain, the question of the availability of FAS to meet the growing needs of the sector is bound to arise sooner or later. It's hardly surprising, then, to see companies secure their supplyThese investments are having a positive effect in supporting the development of production. In recent days, easyJet announced that, as part of its "zero net emissions" strategy for 2050, it had signed a contract with Q8Aviation to guarantee its supply for the next five years. Cathay Pacific has also signed a contract with the American gas company Aemetis, which is developing a plant in California, at Riverbank, to produce sustainable fuel based on 40 % of SAF and 60 % of A-1 jet fuel.

This seven-year agreement will not materialise until 2025, the year from which Aemetis has undertaken to supply 145 million litres to the Hong Kong company, with the prospect of reducing its carbon emissions by 80,000 tonnes. " Our goal is to achieve 10 % of SAF use by 2030said Augustus Tang, CEO of Cathay Pacific. And we have developed a solid SAF procurement strategy to help us achieve these objectives. "

Sufficient and affordable fuel?

In practice, this partnership is part of a wider framework, that ofan agreement concluded at the end of 2021 between Aemetis and the oneworld allianceof which Cathay Pacific is a founding member. The agreement covers the operations of the alliance's 10 airlines in Europe.San Francisco airport for 1.3 million litres of SAF. At the same time, last March the alliance finalised a contract with another American supplier, Gevo, for the supply of 750 million litres from 2027, destined for the airports of San Diego, San Francisco, San Jose and Los Angeles. " As an alliance, we are committed to achieving a target of 10 % of sustainable aviation fuel by 2030said Rob GurneyCEO of oneworld, noting " the value that can be delivered when our member companies work together.

But companies are also looking to source their own fuel. Almost every month of 2022 has added to the story of the rush towards sustainable fuel. In January, for example, Iberia formed a strategic partnership with supplier Cepsa. In February, Virgin Atlantic signed an agreement with Finnish producer Neste Oyi to supply sustainable fuel to London Heathrow. And so on, with Qantas announcing in June its association with Airbus for the launch of a production chain in Australia, Aer Lingus unveiling in July its partnership with Gevo for its flights from California, and the supplier Neste becoming a partner of Aegean Airlines and Air New Zealand during the summer.

Cathay Pacific has placed an order with Aemitis for 145 million litres of SAF.

More generally, Lufthansa stated in August that it had entered into discussions with Shell to a worldwide supply of SAF. If signed, the contract would cover 1.8 million tonnes of SAF between 2024 and 2030. On the other hand - and the delay in SAF production in France is no coincidence - an airline like Air France, which complies with French regulations to incorporate 1% of SAF into its flights departing from France and aims to use 10% of SAF worldwide by 2030, has not yet announced a mega order for sustainable fuel, as other carriers have done.

However, as far as business aviation is concerned, Le Bourget is the only airport in Europe to have two permanent SAF stationsOne is offered by TotalEnergies since mid-2021, and the other by World Fuel Services, a distributor of fuels produced by Neste, which was installed last June. But this SAF offer should eventually be extended to the other two major Paris airports, Orly and CDG. " We are involved in six projects to develop sustainable alternative fuels in Francesays Amélie Lummaux, Director of Sustainable Development and Public Affairs for the ADP Group. The aim is to establish, by 2025 at the latest, sustainable fuel production in France capable of serve the Paris airports.

Development up to plus SAF

The hubs are also working hard to supply SAF on their platforms. While Aeroportos de Portugal formed an alliance this summer with TAP and supplier Galp, the airports of Berlin, Istanbul, Liverpool, London Gatwick and Milan Bergamo have signed agreements with Q8 Aviation. For its part, Shell, which is aiming to produce 2 million tonnes of SAF every year by 2025, is providing its services on the Singapore Changi. In the United States, since June, a pipeline has been delivering sustainable fuel directly from the Neste production plant in Texas to New York airport in La Guardiain partnership with Delta.

The rise of FAS is also part of the evolution of business travel. For example, Shell has teamed up with American Express GBT and Accenture to offer companies a blockchain platform, called Avelia, for limit the carbon footprint of their business travel by allowing them to buy SAF. Supporting the economic viability of the industry, the pilot phase of this alliance involves 4 million litres, the equivalent of 15,000 flights between London and New York. " A viable route to decarbonising air transport is now open to companies" said Paul Abbott, CEO of Amex GBT, when the alliance was announced this summer. Similarly, Cathay Pacific and All Nippon Airways in Asia, and Air France-KLM in Europe, are offering sustainable aviation fuel options to their key account customers. A voluntary contribution launched at the beginning of 2021 which has already attracted some sixty companies.