SAF News Roundup – February 2021
There are a lot of moving parts in the sustainable aviation fuel industry these days. We are seeing new partnerships, dissolving partnerships, predictions about the future of SAF, and much more in between.
While the market for sustainable aviation fuel is still young and growing, it is expected to ramp up rapidly in the coming years with State and Federal mandates being implemented. This will be especially true with the eventual rebound of the air transportation industry, and the logistical and strategic moves that airlines will have to make to meet new standards for net carbon emission reductions.
Here are a few news items that caught our eye in recent weeks. We’re happy to share these with our interested readers.
- Ministers of energy from all over the world gathered online in mid-January for the 2021 Global Energy Forums, sponsored by the Atlantic Council. The 2021 Forum covered the post-pandemic energy system, emerging net-zero carbon goals, the role of the Middle East in the energy transition, and the US’s energy and foreign policy priorities in the current administration. There is a great deal of content on all these topics at the link here.
- From the same Forum, click here to watch the Zoom call featuring aviation leaders speaking about Decarbonization and the future of US Aviation. One of the participants discussed how “there is plenty of feedstock” and “once we start getting into solid waste and mixed waste, there’s nothing stopping you.”
- A recent podcast covers the sustainable aviation fuel market and the trends for 2021 in jet fuel and bio-jet alternatives. It’s hosted by crude oil reporter Andrew Putwain and market analyst Man Yiu Tse, who expects jet fuel demand this year to reach just about 70% of 2019 levels. The podcast covers issues facing the aviation industry like controlling the virus to get flying demand levels back up; what happens to the corporate travel industry, and how long it might take for consumers to feel confident in flying again. Have a listen here (10 mins):
- In partnership dissolution news, Shell has parted ways with Velocys on the Altalto project. Velocys didn’t attain the funding levels needed and are instead seeking government subsidies and other options to secure financing for the project.
- NWABF recently wrote on our blog about what the rise in renewables means for the oil & gas industry. Since then, the big three oil companies – Royal Shell, BP, and Exxon – have all posted financial results for the full year 2020, and they are dire numbers. Shell sustained a loss of $21.7 billion for 2020 and is expected to cut up to 9,000 jobs globally. BP reported a loss of $18.1 billion for the year, while Exxon Mobil posted an annual loss of $22.4 billion. Shell has also stated publicly they are moving away from biofuels made from multiple feedstocks like canola oil, etc. The reason for this is the cost and quantities are prohibitive.
- We are also hearing about two large European-based Engineering companies that no longer will guarantee their Project Construction costs above certain amounts, due to current financial status. When EPC’s cannot guarantee their design and construction, it will cause delays in financing for the project or kill it altogether. That is an upfront piece of info all Developers need to have.
These are some of the stories that caught our eye in recent weeks. Hope they are of interest to you.
The team at Northwest Advanced Bio-Fuels, LLC continues to move toward the final Engineering and Design Studies for the Project with B&V. The NWABF Project will produce and supply 60+ million gallons of SAF annually for Delta Air Lines at the Grays Harbor, WA facility once completed in 2024. We are a committed team that’s excited for the future of sustainable aviation fuel.
