(Topsoe/Biofuels International) ... There is an increasing interest in co-processing as a production method to provide the required short-term ramp up in SAF production.
Co-processing allows refineries to convert renewable feedstocks into drop-in, biojet fuel at economically competitive prices, meaning it can swiftly boost the availability of SAF in the short run.
Existing refining, transport, and storage facilities can be used, so co-processing is cost-effective (CAPEX and OPEX), delivers carbon footprint reduction, and eliminates the need to construct new specialised processing units.
This will be more prevalent outside the US, mainly as IRA production tax credits (45Z) for SAF are not granted when it is pre-processed with fossil fuels in the US (RFS and LCFS credits are available).
Achieving the necessary production capacities and adoption of SAF long-term will require a mix of feedstocks and diversification of process pathways.
Over the next 12 months, we are likely to see further growth in non-edible oils as feedstocks (rotational/winter crops) due to limitations on feedstocks accepted for SAF in Europe and partially in the US.
In addition to co-processing mentioned above, another continuing trend in 2024 for existing refineries will be the upgrading, diversifying, or reconstructing their operations to produce SAF from HEFA or FT-SPK pathways.
More companies are evaluating ways to repurpose existing resources and leverage locally accessible raw materials.
The practical points to consider when thinking about a plant conversion, include feedstock proximity and availability, scale of the project and the complexity involved.
More customers are looking at SAF production and we are now discussing with a number of them how to efficiently revamp a number of HydroFlex™ units, which are currently making renewable diesel, so they also make renewable jet fuel as well
...
In 2024, we also anticipate more investment heading toward pathways like Alcohol-to-Jet (AtJ) and gasification combined with the Fischer-Tropsch process, which uses feedstock such as agricultural and forest residues, as well as municipal solid waste.
Solid waste (third generation feedstocks) is a much more abundant resource than first and second generation and will remain so for years.
It is estimated that annual worldwide municipal solid waste, a source of biomass material, will reach approximately 3.4 billion tonnes by 2050, in part due to rapid urbanisation and rising global populations.
Although in its earlier stages of development, it is clear that maximising utilisation of solid waste feedstock will be key to decarbonising aviation.
...
Finally, there is growing momentum in the decarbonisation of maritime and we expect this will continue this year.
In July 2023, the 175 member states of the International Maritime Organization (IMO) committed to reach net-zero in 2050 and adopted a new GHG strategy. International mandatory measures to enforce this strategy will come into play in 2027.
To achieve the targets set out in the strategy, the average ship’s GHG intensity will need to be reduced by 86% by 2040.
This can only be achieved with the massive uptake of alternative marine fuels, such as hydrogen, ammonia, biofuels and e-methanol. READ MORE
Related articles
- Winds of change in the air for the biofuels industry (UPM/Biofuels International)
Excerpt from UPM/Biofuels International: The European Commission will need to assess how to ensure that not only advanced biofuels but also the whole green transition, for example green hydrogen and green steel, is supported by certification schemes that give sufficient guarantees of genuine green and sustainable performance.
We at UPM Biofuels believe all these developments will support our industry and the business case of advanced biofuels.
However, there are also other significant policy processes this year. Let’s turn to three important policy developments for the year ahead.
Red card from the Court of Auditors on EU biofuel policies
Last December, the European Court of Auditors published an alarming report, based on their in-depth investigation on the sector about the quality of EU biofuels policies.
In short, the report stated that the EU has failed to give sufficient policy stability to the biofuel sector and that more stringent categorisation of truly advanced feedstock is needed, and more transparency in reporting.
It is remarkable that an EU body responsible for EU institutions’ financial transparency and accountability raises such significant concerns on the EU’s biofuel policies.
We welcome the fact that the European Council has already established a working group to respond to these accusations.
UPM Biofuels recognises the significance of the findings of the report.
Stricter certification and more transparency along the whole value chain is needed. We look forward to engaging with the EU institutions in working towards a comprehensive reaction to the auditors’ report.
Such measures should obviously be incorporated into the next Commission agenda.
New approach on renewables - including sustainable biomass?
During the first quarter of this year the European Commission will publish a communication on biotech and biomanufacturing.
It will be very interesting to see how much focus there will be on circular bioeconomy.
This initiative should define sustainable biomass usage as an integral part of the European Union’s strategic autonomy.
The report is also another great opportunity for the EU to reassess our approach to using sustainable, domestic and renewable raw materials as a replacement for fossil consumption.
Advanced biofuels are a fantastic example of using sustainable biomass, wastes and residues to reduce our dependence on fossil oil.
New feedstock to be included in Annex IX to boost SAF development?
Also, during the first quarter of this year we expect the European Commission to publish its decision on the much-delayed revision of Annex IX of RED.
The relevance of the Annex is much greater today than some years ago as it has been decided that the Annex defines those feedstocks that are eligible not only for the road transport mandate but also for the sustainable aviation fuels mandate.
This significantly increases the relevance of the Annex.
UPM has requested appropriate recognition of new innovative agricultural methods such as silvopasture and agroforestry – both integrating trees, livestock, and grazing - to enable new sustainable feedstock development for advanced biofuels.
These innovative agricultural techniques combined with the principle of additionality and certain degraded soil elements could provide highly interesting opportunities for sustainable feedstock sourcing.
We also call for appropriate recognition of cover cropping to ensure sufficient feedstock availability for the sustainable aviation fuel (SAF) sector. READ MORE
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