To meet legally binding mandates, Europe’s aviation industry has no more than two years to get the first production plans for electro-fueled sustainable aviation fuel (eSAF) up and running, according to a report published by Project SkyPower on Monday. Project SkyPower, which is backed by senior air transport sector leaders, has released economic modeling showing that the industry will need to raise between €15 billion and €20 billion (up to $21.8 billion) capital investment by 2030 and a further €3 billion to €5 billion each year to achieve the scale required to meet SAF blending mandates.
According to the report, eSAF produces at least 90% less greenhouse gas emissions over its life cycle than jet-A fossil fuel. Unlike most current SAF, it is produced using renewable electricity, water, and carbon dioxide captured directly from the air or via point-source capture and thus is less restricted by feedstock options.
However, the group warned that these benefits could prove elusive to the global air transport industry because of delays in providing the infrastructure needed. Two-thirds of the planned global eSAF pipeline is in Europe, but no actual plants have had their required investments confirmed.
Government Subsidies Needed
According to Project SkyPower, government subsidies will be needed to avoid the cost of eSAF being between five and eight times as expensive as jet-A when the cost of Europe’s emissions trading scheme is factored in. This cost could be halved if investment decisions over new eSAF plants are made without further delay. The report calls for action to bridge the so-called "green premium" between eSAF and jet-A fuel.
Project SkyPower is backed by CEOs from major airlines including Air France-KLM and easyJet, as well as Copenhagen Airport and private charter flight provider Victor. Other support comes from energy groups such as Arcadia eFuels and SkyNRG, and financial institutions including ING and Natixis Corporate & Investment Banking.
“Successful delivery of Project SkyPower’s action plan will fundamentally change the eSAF landscape, establishing the necessary conditions to take final investment decisions and accelerate this critical technology towards commercial operations in 2030,” said Arcadia eFuels CEO Amy Hebert.
According to the group, the investments called for could support an €80 billion eSAF market in Europe alone by 2050. This, the report claimed, could secure around 14 million jobs in the continent’s aviation industry.