New Relationships Are Advancing the Opportunities in Sustainable Aviation Fuel Industry
One of the key indicators that the Sustainable Aviation Fuel (“SAF”) Industry will enjoy tremendous growth in the coming decade is the fact that major coalitions and partnerships are sprouting up that will ensure Project success going forward. These coalitions and relationships can create the energy that the industry needs to attract more investors in the long term.
The airline industry recognizes this market and is partnering with leading SAF producers for a strong future rebound from the pandemic. In recent months, the SAF industry has seen developments such as:
- Phillips 66 has recently announced that it plans to build the world’s largest renewable diesel, sustainable aviation fuel plant called RodeoRenewed in northern California, with production starting by 2024.
- Neste recently announced that it was starting to supply sustainable aviation fuel with three airline carriers
- ExxonMobil has signed an agreement with Global Clean Energy Holdings to purchase 105 million gallons of renewable diesel per year for five years from a converted California refinery starting in 2022
- Northwest Advanced Bio-Fuels, LLC, is moving into the next funding stage to facilitate the Project’s Engineering and Design phase prior to construction for its sustainable aviation fuel to supply Delta Air Lines in a partnership announced in 2019.
- Canada’s Suncor Energy and Japan’s Mitsui & Co. are pouring $85 million into one project
- Velosys has a project slated for the state of Louisiana, and another called AltAlto in the UK
Across the spectrum of these deals, it’s clear that a partnership coalition and a team effort will help lift the entire industry. A recent Research & Markets consultancy study forecast that the Designer Fuels market is expected to grow potentially by over 55% in the next five years.
The airline demand for sustainable aviation fuel production to meet carbon emission goals is very high. One study suggested that 170 new large bio-refineries would need to be built every year from 2020 to 2050, at an approximate capital cost of US$15 billion to US$60 billion per year. If the market only did a blend up to 50%, the demand would be 85 plants annually for the next 30 years at a cost exceeding $500 billion in SAF facilities alone.
The Industry needs “WINS”, when developing Projects, not more losses. We can’t do that without involving those “key” companies that allow us to achieve our Project funding, This means that new technology and engineering experience does us not good. There are successful, proven technologies and engineering partners who are willing and able to help the industry succeed. To top off the importance of that last statement, these companies are financially solid, which means your Project can be “Wrapped” by the EPC to lower investor risk. This is a paramount requirement. If we focus on successful technologies and engineering services, this Industry will explode. It helps us all to do it right!
We say the time is here to build more of these partnerships to assist us in bringing in the “Big Boys” from the investment community. This will create the pathway to build the Sustainable Aviation Fuel industry, to create a more efficient fuel economy moving ahead for all of us. The Partners needed to create a fundable project for you are here now!
Our time is now!
