Sustainable Aviation Buyers Alliance to buy SAF credits
The Sustainable Aviation Buyers Alliance (SABA) has announced that its members will collectively purchase sustainable aviation fuel (SAF) certificates, allowing organisations to buy scope 3 emissions credits.
Members such as Bank of America, Boston Consulting (BCG), JPMorgan Chase, Meta and clean energy non-profit RMI will buy certificates for nearly 850,000 gallons (2,576t) of SAF, with each certificate equivalent to 1t of the biofuel. The organisations will do so in what SABA describes as their first joint procurement.
The SAF will be produced by low-carbon fuel producer World Energy for the US low-cost carrier JetBlue and is estimated to cut CO2 emissions by 8,500t or 84pc compared to conventional jet fuel on a life cycle basis.
The organisations that bought the SAF certificates will pay some or all of the premium associated with SAF. Funds from the sales will be also used to increase purchases of SAF.
The certificates seek to standardise and create transparency for the accounting and reporting of certified greenhouse gas (GHG) reductions and to encourage SAF production, which would influence the fuel's cost competitiveness relative to conventional jet fuel.
SABA has also announced that it will launch a second procurement process after the first procurement is successfully completed, with the alliance seeking to purchase 10 times more SAF certificates across a five-year period. This process will be open to all airlines and fuel providers.
SABA will also pilot a new digital registry to bring more transparency, consistency and integrity for SAF certificates.
SABA was launched in 2021 by RMI and the US Environmental Defense Fund with the goal to accelerate the path to net zero aviation. Its founding members include Bank of America, BCG, Meta, Deloitte, Microsoft and JetBlue.
World Energy currently produces 144,000 t/yr of SAF in Paramount, California with a 576,000 t/yr refinery going on line in 2024 in the same location. Another upcoming 720,000 t/yr plant located in Houston, Texas will begin operations in 2025. All sites use the hydroprocessed esters and fatty acids pathway for SAF production.
Related news posts
Texas ports could fully reopen Thursday: Pilots
Texas ports could fully reopen Thursday: Pilots
New York, 10 July (Argus) — Major Texas ports are likely to rescind draft restrictions and begin operating at full capacity Thursday with port facility damage limited and shipping channels free of significant blockages following Hurricane Beryl, according to vessel piloting services. The US Coast Guard authorized most Texas ports to open for daylight hours only starting today , with 30 ft draft restrictions in the port of Houston and 35 ft in the ports of Galveston and Texas City. But with "no major obstructions" being found in the channels and final surveys by the US Army Corps of Engineers and the US Coast Guard expected soon, those restrictions may be lifted by the end of day Wednesday, according to Galtex Pilots director of operations Erik Stramblad. The restrictions slowed vessels traffic in and out of the port of Houston to about 66pc of the "typical count of 55-60 vessels daily", according to Houston Pilots Association chief operating officer JJ Plunkett. "We're working with the Coast Guard and the Army Corps of Engineers to get their final surveys," Plunkett said. "Tomorrow [the port of Houston] will probably have a deeper draft." The resulting buildup of vessels around Texas ports is likely to clear quickly once normal operations resume, according to Stramblad. "The number of vessels waiting is about the same [as usual]," Stramblad said. "It's only been a couple of days [of downtime]. It tends to clear itself up quickly once we have the full draft back." Some private terminals within the ports of Texas City and Galveston need to provide their own status assessments before operations can fully resume, Stramblad said. "Nobody wants to hit something that shouldn't be there," Stramblad said. Ship-to-ship transfers of crude, refined products and other commodities resumed off the Texas coast on Tuesday. At least two charterers today sought Suezmax tankers for crude lighterings in the US Gulf coast from 12 July. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Boeing used less SAF in 2023 than planned
Boeing used less SAF in 2023 than planned
New York, 10 July (Argus) — US aerospace manufacturer Boeing used less sustainable aviation fuel (SAF) in 2023 than it had initially planned, citing "supply chain issues." Boeing doubled its internal SAF consumption in 2023 compared with year-prior levels according to its latest sustainability report, with the fuel making up about 3pc of its total aviation fuel use over the year. But the company's use of around 478,000 USG neat SAF in its own operations was still less than its previously announced purchase commitments. Boeing early last year committed to funding 5.6mn USG of blended SAF from Finnish biofuels producer Neste over the course of 2023, with 2.6mn USG to be used directly by Boeing and another 3mn USG to support SAF use elsewhere as part of a book-and-claim accounting process. Since the Neste blend contains about 70pc conventional jet fuel, the Boeing commitment in essence was to purchase and use within its own operations about 780,000 USG neat SAF. But Boeing's direct SAF consumption last year, which reflects fuel used internally and not fuel it supported for use elsewhere, was around 61pc of its earlier purchase agreement. The company, confirming the discrepancy, said not all the planned 2.6mn USG were received because of "supply chain issues" but declined to elaborate further. Under the initial deal, Epic Fuels and its parent company Signature Aviation were supposed to supply 2.3mn USG of the Neste blend to Boeing, while Avfuel was supposed to supply 300,000 USG. Avfuel manager of alternative fuels Keith Sawyer told Argus that it ended up supplying more than the planned 300,000 USG at Boeing's request last year and that the fuel supplier is on track to meet its obligations to supply 1.5mn USG of blended SAF to Boeing this year. Epic Fuels and Neste declined comment. Boeing has set plans to use 4mn USG of the same Neste SAF blend in its own operations this year, with some coming from Epic and some from Avfuel, and to purchase SAF certificates associated with 5.4mn USG of blended SAF used elsewhere. Boeing added that SAF, which today mostly comes from hydrotreated vegetable oils and waste fats, is "the biggest lever for the industry to decarbonize by 2050." The company plans to use more of the fuel internally and to ensure that all the commercial airplanes it produces are compatible with 100pc SAF by 2030. In short supply Aviation companies see SAF as crucial for meeting climate goals, though usage to date has been limited by SAF's steep premium to conventional jet fuel. Though prices for SAF delivered to the US west coast have recently fallen on expectations of higher supply, it is still more than twice as expensive as conventional jet according to Argus assessments. The fuel's growth thus hinges on government policy, but low environmental credit prices in the US and uncertainty about a clean fuels tax credit kicking off next year have created a difficult investment environment for biofuels producers. Few potential suppliers and thin market liquidity then make it hard for prospective customers to rapidly scale up their SAF consumption. American Airlines for instance wants to replace 10pc of its jet fuel with SAF by 2030, but the US airline reported in its own sustainability report last week that it used 2.7mn USG SAF in 2023, an increase from the prior year but still less than 0.1pc of its total fuel use. Chief executive Robert Isom said that "we've signed commitments with multiple SAF producers, at a premium, to try to secure supply" but that "the volume of SAF available today and likely to be ready over the next several years is a tiny fraction of what's needed." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU parliament groups detail climate, energy policy asks
EU parliament groups detail climate, energy policy asks
Brussels, 9 July (Argus) — The European Parliament's centre-left S&D and liberal Renew groups are finalising their key policy requests ahead of an expected plenary vote, on 18 July, on the re-appointment of Ursula von der Leyen as European Commission president. Both groups, like the centre-right EPP, are broadly calling for a continuation of the bloc's Green Deal. Von der Leyen, a member of the centre-right EPP's governing body, has already received nomination from EU leaders. But she will also need support from the centre-left, liberals and Greens to gain a majority in plenary on 18 July. The EPP had intended to finalise its policy calls for 2024-29 in Portugal by 5 July. But parliament's largest centre-right party is still working on a "live" document with hundreds of amendments. Core elements remain, including revision of CO2 standards for new cars to allow for alternative zero-emission fuels beyond 2035 and a new e-fuel, biofuel and low-carbon fuel strategy. The centre-left S&D group has already handed von der Leyen its policy wishlist for 2024-30. The group has called for several existing targets to remain in place, including the EU's legal commitment to climate neutrality by 2050 and the 2030 greenhouse gas (GHG) reduction target — cuts of "at least" 55pc by 2030, from 1990 levels. It also wants CO2 standards for cars and the deforestation regulation to remain in place. S&D also wants to extend legal obligations under the EU's Climate Law to establish an "ambitious" intermediate climate target for 2040 of "at least 90pc and up to 95pc of net GHG emissions", compared with 1990 levels. And the group calls for renewable energy, energy efficiency and clean technology manufacturing to be at the core of the EU's energy security strategy. The liberal Renew group does not want the next commission "backtracking" on the Green Deal, and is pushing for affordable energy for households. The group wants a "complete phase-out" of imported Russian fossil fuels, with a strong emphasis on a continued supply diversification and energy efficiency. Renew further calls for a "zero carbon" Energy Union package of legislation with joint purchasing and allowing for more investment in power storage, grids and generation. Other liberal calls are for expanding the emissions trading system (ETS) and expanding the EU's carbon border adjustment mechanism (CBAM) to new sectors, including downstream users such as automotive. A "phase-out" of coal, oil and gas in industry should come through strong market-based ETS measures, while ETS revenues should support accelerated electrification, the group added. And it calls for a science-based 2040 GHG target. The Green group has not prepared a specific post-electoral document for 2024-29 strategy. But its support for von der Leyen is made conditional on not rolling back the Green Deal. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
YM Together sails with B30 HSFO from Busan
YM Together sails with B30 HSFO from Busan
Singapore, 9 July (Argus) — The first foreign-flagged vessel to bunker high sulphur fuel oil (HSFO)-based B30 in South Korea was the YM Together, on 26 June. The vessel is an 11,000-TEU container ship owned by Yang Ming. The vessel bunkered B30 HSFO, which contains 30pc used cooking oil (UCO) and 70pc HSFO, at the port of Busan. Aimed at meeting EU-led emissions compliance measures, this B30 fuel meets the Fuel EUMaritime standards, and leads to 25pc GHG emissions savings, the company said. The maiden exercise in bunkering B30 HSFO was done by Yang Ming in collaboration with supplier KPI Ocean Connect. YM Together comes with scrubbers and shore power systems (AMP) to enable GHG emissions savings during voyages. The move is part of Yang Ming's efforts to improve the energy efficiency of its fleet. The shipowner has taken several measures including retrofitting ships, adopting smart technology, reducing fuel consumption, optimising routes and using AMP systems for shore power. Yang Ming reduced the carbon intensity of its fleet by 61.86pc in 2023 compared with the baseline year of 2008, the company said. By Mahua Chakravarty Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more