Dutch/Swedish Consortium Gets Go ahead to Continue Study on Production of Sustainable Aviation Fuel from Forestry Residues in Sweden

(SkyNRG) Today the Swedish Energy Agency announced it will grant funds to KLM Royal Dutch Airlines, Södra, Växjö Energi, SkyNRG, RISE Research Institutes of Sweden and 2030-sekretariatet to continue their research on the development of production of Sustainable Aviation Fuel (SAF) in the Växjö region in Småland, Sweden. The funding will support the consortium to continue their study on an integrated Fischer-Tropsch SAF production facility using forestry residues. The envisioned facility has the potential to be an important step forward in making aviation more sustainable. The Swedish Energy Agency awards the consortium with a grant of 5.1 million SEK (EUR 502.000) to fund the project.

This first-of-its-kind Fischer-Tropsch SAF production facility integrated with existing bio-based energy production has the potential to produce high quality sustainable fuels and reduce GHG emissions in the aviation sector. The realisation of the plant could serve as a proof of concept for many future plants. By 2026, the plant could be operational with a production volume of 16 kilo tonnes SAF annually.

Innovative consortium covering the whole value chain

The consortium, which represents the whole value chain of the production, joins forces in order to increase the availability of SAF in Sweden and North Europe. To meet future demand partners will research all engineering, technical, business and sustainability angles of the project. NGOs, the Swedish government, Södra, certification systems, academics and SkyNRG’s Sustainability Board are being involved to set the right sustainability framework for this project. Sustainability factors considered in the study include the carbon balance and the biodiversity of the forest as well as potential displacement effects of utilising forestry residues for SAF production.

SAF not widely available

The current generation of aircraft engines require liquid fuels. These aircraft cannot switch to alternative energy sources such as hydrogen or electricity in the short term, and neither can airport infrastructure. SAF, as a ‘drop-in fuel’ is the solution to drastically reduce CO2 emissions in aviation in the short to medium term, with no modifications to infrastructure or equipment required.

SAF is not widely available yet. It has the potential to reduce carbon emissions by 75 to almost 100 percent in its neat form, depending on the combination of technology pathway and feedstock, and as long as stringent sustainability criteria are met.

KLM Royal Dutch Airlines: focus on alternative technologies

Karel Bockstael, VP Sustainability at KLM, leading and pioneering in making the operation and the aviation sector more sustainable: “To be able to become more sustainable in the future, KLM is focusing on scaling up production and use of SAF. For more SAF, we must focus on all technologies side by side and encourage the initial upscaling of production facilities. The application we support in Sweden is an important next step in the development. Current technologies based on used cooking oils will reach its limit due to scarcity, and the development of sustainable synthetic SAF has financial and technological challenges to overcome. The technology we will be deploying in Sweden is based on Fischer-Tropsch synthesis, and produces jet fuel based on forestry residues. There is a lot of this residue available in Sweden and the rest of Europe, making it a promising project.”

Södra: small-scale family forestry of 53,000 forest owners

Lotta Lyrå, President and CEO of Södra, an international forest industry group and the largest forest-owner association in Sweden with a membership of 53,000 forest owners: “Södra is devoted to maximize the use of every tree that comes from our 53,000 member’s forests in Southern Sweden. Using every part – like residues – is key in our ambition to show the way to a fossil-free society and contribute to the climate transition. Making high quality Sustainable Aviation Fuel from forest residues not suitable for buildings or other materials is a way of doing so and help de-carbonize aviation. With this consortium, we are working through the entire value chain to take the next step towards creating a new industry of Sustainable Aviation Fuel.”

Växjö, greenest City in Europe

Erik Tellgren, CEO of Växjö Energi, who provides products and services in the areas of electricity, district heating and district cooling in Växjö Municipality, Sweden: “Växjö Energi provides efficiently produced fossil free district heating, district cooling and electricity at the CHP plant Sandviksverket in Växjö Municipality, Sweden. Växjö, the Greenest City in Europe, has a strong will to continue contributing to reducing climate change. We also trust it is beneficial to extend our plant to also produce sustainable aviation fuel from forest residues. This would be great and as a first-of-a-kind project of vital importance to the sustainable energy transition necessary.”

SkyNRG, SAF frontrunner

Maarten van Dijk, Managing Director of SkyNRG, pioneer in SAF with the industry’s biggest dedicated SAF team: “As one of the global market leaders in Sustainable Aviation Fuel we are active partners in a multitude of projects, focused on scaling different feedstock/technology pathways. The potential to use forestry residues for higher value end-uses, like SAF, is there. But before taking a next step in scaling up, it is critical to make sure we understand the sustainability and impacts of this new, integrated supply chain. We are therefore very grateful for the strong partnership and financial support from the Swedish government to take a next big step in understanding the true potential of this feedstock/technology setup.” READ MORE

Excerpt from Sodra/CISION: Södra, in agreement with Statkraft, has decided to sell its holding in Silva Green Fuel. Biorefineries are an important part of Södra's strategy and the ambition is to implement a future commercialization in Götaland.

Silva Green Fuel was founded in 2015 by Södra (49%) and Statkraft (51%) with the goal of developing a method to produce bio-oil. At Silva's demo facility in Tofte in Norway, they have succeeded in producing bio-oil from forest by-products and thus contributed to an important step towards the biofuels of the future. When technology development now enters a new phase, Södra's business assessment is that other partners need to step in.

- Södra are experts in forestry and industrial processes for extracting sustainable products from forest raw materials. Through the collaboration around Silva, we have managed to find a way to convert forest by-products into bio-oil, which is an important success. Södra has great faith in the technology and, in line with our strategy, we see good opportunities to carry out a future commercialization in Götaland, says Catrin Gustavsson, business area manager Södra Innovation .

In 2015, Södra sold the industrial site at its former pulp mill in Tofte to Statkraft. The agreement means that Södra is now also selling its ownership stake in Silva Green Fuel of 49 percent to Statkraft, which will thus continue to run the company .

Energy and chemicals are a designated growth area for Södra, a priority that remains when the ownership in Silva is divested . Södra sees great potential in techniques that upgrade forest by-products such as bark, branches and tops. One of the priorities going forward is to be able to implement a future commercialization of biorefinery in connection with the existing industrial structure in Götaland.

Södra was formed in 1938 from the idea that we are stronger together. Today, Södra is Sweden's largest forest owner association with 52,000 family forest farmers as members. Together, Södra's members own a world-leading industry that refines forest raw materials into renewable products in pulp, wood, building systems, liquid bioproducts and energy. 3,300 employees work in our forest industry and during 2022 Södra's turnover was SEK 33 billion. Our products are exported all over the world and together we contribute to a more natural society. With roots in the forest, we create the future. READ MORE