Future Energy Global and Sora Fuel sign letter of intent for e-SAF offtake agreement

The collaboration envisions FEG reserving offtake of the environmental attributes of the first 10 million gal. of Sora’s future e-SAF production, with an option for FEG and Sora to increase the offtake at a later date. These SAF Scope 1 and Scope 3 attributes will enable airlines and corporates all over the world to reduce their CO₂ emissions using Book and Claim.

The aviation industry has committed to reaching net-zero CO₂ emissions by 2050, and SAF is expected to contribute around two-thirds of the necessary emissions reduction. To achieve this, SAF’s production quantities need to scale more than 400-fold, while its production cost needs to be driven down to economically viable levels.

The Book and Claim system, already well established in other energy markets such as renewable electricity, addresses this challenge by enabling the environmental attributes of the fuel to be traded separately from the underlying fuel. Unbundling the Scope 1 and Scope 3 attributes from the physical commodity allows SAF to be produced where it is most cost effective to do so, while reducing carbon emissions associated with fuel transportation and storage. This provides a global, cost-effective SAF solution to airlines and corporates who are working to reduce their carbon footprints.

Future Energy Global specialises in accelerating SAF through an innovative financial ecosystem that facilitates collaboration between all participants in the value chain. FEG enters into long-term offtake agreements with SAF producers, provides cost-effective SAF solutions for airlines, and enables investors and corporate stakeholders to accelerate the scale-up of SAF production. By addressing the critical need to scale SAF production, FEG plays a pivotal role in aviation’s path to net-zero emissions.

Sora Fuel offers an entirely new path for producing SAF and other e-fuels using just air, water, and electricity as feedstocks. Sora’s core technology breakthrough is the ability to capture atmospheric CO₂ below US$50 per t. Sora then electrolytically converts the captured carbon dioxide and water directly into syngas, and ultimately into ASTM approved fuels. The approach unlocks production of e-fuels wherever clean energy is cheapest and most abundant. Fuel produced by Sora is expected to enable reduction of carbon intensity of up to ~90% versus conventional jet fuel. Sora Fuel was conceived within Engine Ventures based on research from the Berlinguette Research Group at the University of British Columbia.

“Our goal is to drive SAF market growth and help reduce aviation emissions,” commented Natasha Mann, CEO and Co-Founder of Future Energy Global. “To do that, we need to support innovative SAF producers like Sora Fuel to scale up their production and drive down the cost of sustainable fuels.”

Gareth Ross, CEO and Co-Founder of Sora, said: “We are thrilled to be in discussions with an innovative market leader like Future Energy Global and see this partnership as one that can grow substantially through time. Securing commercial offtake is a key milestone in establishing the bankability of future Sora Fuel plants. This important market signal validates the promise of our technology, which is to take advantage of the lowest clean energy prices on earth to strengthen the business case for e-SAF and drive more rapid adoption.”

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/23062025/future-energy-global-and-sora-fuel-sign-letter-of-intent-for-e-saf-offtake-agreement/