SAF, a fuel for a country project

The report «How to make Spain the European leader in SAF? Roadmap for the decarbonization of air transport”, promoted by Cepsa, Iberia, Iberia Express, Vueling and Biocirc (Spanish Association of Biocircularity), contains 16 economic, regulatory and public-private collaboration measures to boost the production and consumption of sustainable aviation fuels (SAF). This alternative to traditional kerosene allows us to reduce the environmental impact of the airline sector by reducing CO2 emissions – to, according to this report, “position Spain as the European leader in this new technology and sustainable tourism.” Added to the potential for emissions reduction is the economic and social impact that boosting the production and consumption of this fuel could have for Spain. To do this, they ask the Government for multimillion-dollar aid so that the extra 5,000 million that it will cost to decarbonize aircraft emissions do not fall on the user.

The five companies launch these proposals in the conviction that promoting this technology, in addition to facilitating the energy transition of the air transport sector and its reduction of emissions, would make energy autonomy possible and put Spain at the head of this market in which that there is a global race for first place.

For this reason, these companies, which represent all the agents in the value chain from raw materials to consumption, propose that this impulse be a country project and advocate adopting an agreement between the Government and the sector that places this energy vector among the priorities of the energy and industrial policy agenda. Additionally, Spain would position itself as a European hub and at the forefront of sustainable tourism.

In the words of Marco Sansavini, president and CEO of Iberia, “we must not miss this great opportunity for the country. We call on the central government and all public administrations to join forces in a national SAF strategy. “It is the perfect opportunity to promote the reindustrialization of Spain, create jobs and wealth and decarbonize a sector as difficult as aviation.”

What is the SAF

Sustainable aviation fuel, or SAF, is produced from renewable, non-petroleum feedstocks: municipal organic waste and yard waste, woody biomass, fats/oils, and other feedstocks. In other words, a perfect example of how the circular economy allows us to provide a solution to the waste problem. It allows emissions to be reduced by 90% compared to kerosene and throughout its life cycle and can be used without modifying aircraft engines or airport infrastructure; in fact, it is already being used. Therefore, it is considered necessary to comply with European legislation and objectives regarding greenhouse gas emissions.

One of the most powerful points in favor of the national production of this fuel is pointed out by Teresa Parejo, director of Sustainability at Iberia: “the enormous wealth of forestry and agricultural waste, which is what is used to produce biological SAF.” And he adds “in addition, Spain is on track to lead the production of green hydrogen, which will also be used in synthetic SAF production. That is to say, the country has everything it needs to be a great producing power.

Proposals

The report estimates that there are 30 production plants necessary to supply the current and future demand for this fuel – expected to be five million tons in 2050 – as well as develop innovative production technologies. In terms of employment, the process would generate 270,000 jobs, many of them widely spread in rural areas, in that period.

Likewise, it highlights that the development of this industry could have an impact of 13,000 million euros on the Spanish GDP just due to the construction of the plants, to which 42,851 million euros would also be added for their operation until 2050.

But, currently, the price, between three and five times more expensive than kerosene of fossil origin, is a handicap. To make it a sustainable and viable solution in the short term, the proposal is to jointly assume the necessary investments and the increase in SAF production costs.

Development of technologies and deployment of industrial facilities that take advantage of the raw material potential existing throughout the national territory to satisfy internal demand requires investment. The new industry would require investing 22 billion euros, in addition to safe regulatory frameworks for the agents involved, allowing them to invest with confidence in this emerging industry.

They also propose streamlining permits and authorizations to establish the necessary infrastructure throughout the value chain, along with subsidies and tax incentives and the creation of a fund of 300 million annually with income from the auctions of emission rights. Plus the support, involvement and coordination of all levels of public administrations, as well as public-private alliances that promote the production and consumption of SAF.