SAF-SUSTAINABLE AVIATION FUEL PROJECT
How is SAF produced?
Currently, there are various methods for the production of SAF (Sustainable Aviation Fuel): Thermochemical Process This process is based on converting lignocellulosic raw materials into synthetic paraffinic kerosene. Oleochemical and Lipid Process This method of SAF production is the most efficient for large-scale production.
The raw materials are derived from used cooking oil, animal fats, and vegetable oils. Biochemical Process The raw materials used in biochemical processes are sugar or starch. Power-to-Liquid This method of SAF production has a synthetic origin, unlike the previously mentioned methods, which are biofuels; in this case, we are dealing with an electrofuel.
Imagio's SAF
For the project, it was decided to combine the oleochemical lipid process with the thermochemical route. By merging these processes, it is possible not only to ensure a consistent flow of raw materials but also to achieve lower production costs compared to other similar industries. Smaller spaces are required, which translates into cheaper construction of facilities and equipment, faster processes, greater production capacity, and a more attractive financial outcome.
This is all accomplished without compromising product quality. In this case, we also achieve the generation of a highly valuable byproduct, in addition to operating a plant free from liquid and gaseous waste, thereby not only complying with current environmental regulations but exceeding them.
Glycerin as a By-Product
It is the only byproduct in the production of SAF and has a value almost comparable
to SAF itself.
The global glycerin market exceeds USD 2.68 billion and is segmented into crude
glycerin and refined glycerin, both of which are produced in our plant.
It has applications in pharmaceuticals, food and beverages, alkyd resins, cosmetics
and personal care, industrial chemicals, polyols, and many other uses.
Financial Benefits
-Tax Credits: The federal government offers tax credits for the production and
sale of biofuel, which can significantly reduce the tax burden.
-State Incentives: Many states offer additional incentives, such as tax credits,
subsidies, or tax exemptions, to encourage biofuel production.
-Premium Selling Prices: SAF can be sold at a higher price than traditional
fuel, potentially generating higher revenues.
-Cost Savings in Production: SAF production can be more cost-effective than
traditional jet fuel production, especially when using inexpensive raw
materials.
-Available Financing: There are federal and state financing programs available
to support the construction of biofuel plants.
-Potential to Earn Carbon Credit Certificates: SAF production can generate
carbon credit certificates, which can be sold on the carbon market.
-Reduced Shipping Costs: Producing SAF in the United States can lower
shipping costs compared to importing jet fuel from other countries.
-Opportunity for Long-Term Supply Contracts: SAF production can lead to
long-term supply contracts with transportation companies and other
consumers.
Imagio's Market Analysis for SAF
Industry Overview:
The global aviation industry is under increasing pressure to reduce carbon
emissions and its dependence on fossil fuels. The International Air Transport
Association (IATA) estimates that the aviation sector accounts for around 2-3%
of global CO2 emissions. SAF is seen as one of the most promising solutions to
decarbonize the sector. While the SAF market is still in its infancy, it is expected
to grow significantly in the next decade, driven by regulatory requirements,
consumer demand for sustainability, and investments in green technologies.
Target Market:
1. Airlines: Major airlines, particularly those operating in long-haul and domestic
routes, are key customers for SAF. Airlines are under increasing pressure from
governments, investors, and consumers to reduce their carbon footprints.
2. Airports: Airports will play a pivotal role in SAF distribution, as they are the
central hubs for aviation fuel.
3. Governments and Regulators: National and international regulations (e.g.,
European Union’s Emissions Trading Scheme, CORSIA) will help drive demand
for SAF as part of their sustainability goals.
Market Trends:
- Government Mandates: Many governments are setting ambitious goals for
carbon neutrality in aviation, which will increase demand for SAF.
- Investor Interest: Investors are increasingly interested in green and
sustainable industries, creating opportunities for funding and innovation in SAF
technologies.
- Cost Parity with Jet Fuel: One of the key challenges for SAF production is
making it cost-competitive with conventional jet fuel, but with advances in
technology and scale, this is becoming more feasible.
Supply Chain:
SuRF Industries will work with logistics companies to secure reliable transportation and storage solutions for SAF. We will also establish relationships with major airlines, airports, and fuel distributors to ensure consistent and reliable fuel delivery.
Sales and Marketing:
Our marketing strategy will focus on building relationships with key industry players,
including airlines and airports, emphasizing the environmental benefits of SAF and its
importance in achieving sustainability goals. We will also advocate for government
support and incentives for SAF production and use.
Regulatory Compliance:
We will closely monitor and adhere to international aviation fuel regulations and
sustainability certifications, such as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), and ensure that SAF produced is ASTM D7566 compliant.
