International Airlines Group (IAG), the parent company of British Airways, Iberia, Aer Lingus, and Vueling, has announced a landmark deal with Twelve, a US-based company that produces synthetic aviation fuel (SAF) from carbon dioxide (CO2) and renewable electricity. The deal will see IAG purchase up to 1 million tonnes of e-SAF per year, equivalent to removing over 2 million cars from the road. This will enable IAG to reach one-third of its 2030 target to reduce net CO2 emissions per passenger kilometre by 50% compared to 2005 levels.
What is e-SAF and why is it important?
SAF is a term that covers various types of fuels that can be used in jet engines and have lower lifecycle greenhouse gas (GHG) emissions than conventional jet fuel. SAF can be produced from various feedstocks, such as biomass, waste, or CO2, and using different processes, such as Fischer-Tropsch, alcohol-to-jet, or power-to-liquid. e-SAF is a specific type of SAF that is produced from CO2 captured from the air or industrial sources and renewable electricity generated from hydro, solar, or wind power. e-SAF is also known as electro-fuel, synthetic kerosene, or power-to-liquid fuel.
e-SAF is important because it can significantly reduce the GHG emissions of aviation, which accounts for about 2.5% of global CO2 emissions and is expected to grow in the future. Unlike other modes of transport, aviation has limited options to decarbonize, such as electrification or hydrogen, due to the high energy density and safety requirements of jet fuel. Therefore, SAF, especially e-SAF, is seen as a key solution to achieve net-zero emissions in the aviation sector by 2050, as endorsed by the International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA).
How does Twelve produce e-SAF?
Twelve is a company that was founded in 2019 by former NASA engineers and scientists, with the mission to transform CO2 into valuable products using renewable electricity. Twelve’s technology is based on a proprietary electrochemical process that converts CO2 and water into syngas, a mixture of hydrogen and carbon monoxide, using a metal catalyst and electricity. The syngas is then converted into e-SAF using a modified Fischer-Tropsch process, which can produce different types of hydrocarbons, such as gasoline, diesel, or jet fuel, depending on the catalyst and operating conditions. Twelve claims that its e-SAF has a carbon intensity of less than 10 gCO2e/MJ, which is more than 90% lower than conventional jet fuel.
Twelve operates a pilot plant in Silicon Valley, California, where it produces e-SAF and other products, such as e-gasoline and e-ethylene, for testing and demonstration purposes. The company plans to scale up its production capacity to 100,000 tonnes per year by 2025, and to 1 million tonnes per year by 2030, with the support of strategic partners and investors, such as IAG, Chevron, and BMW. Twelve’s e-SAF is certified by ASTM International, the global standards organization for aviation fuels, and meets the requirements of Annex 16 of ICAO, which regulates the use of SAF in international flights.
What are the benefits and challenges of e-SAF?
The main benefit of e-SAF is that it can reduce the GHG emissions of aviation without requiring any changes in the existing aircraft, engines, or infrastructure. e-SAF can be blended with conventional jet fuel up to 50%, or even 100% in some cases, and used in the same way as jet fuel. e-SAF can also improve the air quality and noise levels around airports, as it has lower emissions of pollutants, such as sulfur oxides, nitrogen oxides, and particulate matter, and lower combustion noise than jet fuel.
The main challenge of e-SAF is its high cost, which is mainly driven by the cost of renewable electricity and CO2 capture. According to a study by the International Energy Agency (IEA), the production cost of e-SAF in 2020 was between $3.6 and $5.8 per litre, which is 5 to 8 times higher than conventional jet fuel. The study also projected that the cost of e-SAF could drop to $1.9 to $3.1 per litre by 2030, and to $1.1 to $1.8 per litre by 2050, with technological improvements and economies of scale. However, this would still require a significant price premium or policy support to make e-SAF competitive with conventional jet fuel.
Another challenge of e-SAF is its availability and distribution, which depend on the availability and location of renewable electricity and CO2 sources, as well as the logistics and infrastructure to transport and store e-SAF. Currently, the global production capacity of e-SAF is very limited, and most of the existing and planned projects are located in Europe and North America, where the renewable electricity and CO2 capture costs are relatively low and the policy incentives are relatively high. To increase the availability and distribution of e-SAF, it is necessary to develop regional and global supply chains and markets, as well as to harmonize the standards and regulations for e-SAF across different countries and regions.
What is the impact of IAG’s e-SAF deal with Twelve?
IAG’s e-SAF deal with Twelve is one of the largest and most ambitious deals in the aviation industry to date, and it demonstrates IAG’s commitment and leadership in decarbonizing the aviation sector. The deal will enable IAG to secure a long-term supply of e-SAF for its airlines, and to reduce its GHG emissions by up to 1.2 million tonnes per year, equivalent to removing over 2 million cars from the road. This will help IAG to achieve its 2030 target to reduce net CO2 emissions per passenger kilometre by 50% compared to 2005 levels, and to reach net-zero emissions by 2050.
The deal will also support Twelve’s growth and innovation, and accelerate the development and deployment of e-SAF technology and infrastructure. The deal will provide Twelve with a guaranteed demand and revenue stream for its e-SAF, and enable Twelve to scale up its production capacity and reduce its production cost. The deal will also create new jobs and economic opportunities in the US and the UK, where Twelve and IAG are based, and where the e-SAF will be produced and consumed.
The deal will also inspire and influence other stakeholders in the aviation industry and beyond, such as airlines, fuel suppliers, aircraft manufacturers, regulators, and consumers, to adopt and support e-SAF as a key solution to decarbonize aviation and other sectors. The deal will increase the awareness and confidence in e-SAF, and create a positive feedback loop between supply and demand, which will drive further innovation and investment in e-SAF. The deal will also contribute to the global efforts to combat climate change and achieve the goals of the Paris Agreement, which aims to limit the global temperature rise to well below 2°C above pre-industrial levels.