Potential for €2.55 billion SAF industry in Ireland by 2050

The study, 'Ireland’s Sustainable Aviation Fuel Opportunity', was launched today by the Minister for Enterprise, Trade and Employment, Simon Coveney TD, and looks at the key role SAF will play in helping the aviation industry achieve its net zero goal by 2050. IATA estimates that SAF, which can be used to replace traditional jet fuel, will deliver over 60% of the contribution needed to reduce aviation emissions to reach net zero by 2050. The EU’s ReFuelEU initiative obligates fuel suppliers to blend SAF into the fuel available at all EU airports, rising from 6% SAF by 2030, to 70% by 2050.

To meet EU mandated SAF volumes alone, Ireland will require approximately 10 SAF plants of 80 kt production capacity each. This would create an Irish SAF sector generating revenue of €2.55 billion/yr and could provide up to 1000 high-skilled jobs in direct and indirect employment. Further export opportunities could significantly increase these numbers.

The research finds that the biggest opportunity for Ireland lies in Power to Liquid (PtL) production of eSAF, a synthetic fuel produced by combining green hydrogen (extracted through electrolysis from water using renewable energy) with biogenic carbon dioxide (CO₂). SAF derived from bio-based intermediates like renewable natural gas has potential to scale up more rapidly to fulfill the advanced biofuels portion of the ReFuelEU mandate.

Significant progress is required for Ireland to be able to develop eSAF at scale, particularly to ensure there is enough excess renewable power available to produce hydrogen in the required quantities. The increased levels of offshore wind power generation that government initiatives are targeting by 2030 will put the country in a stronger position to develop a domestic SAF industry.

Minister for Enterprise, Trade and Employment, Simon Coveney, TD said: “The government is committed to supporting EU and international action to reduce aviation emissions. The European Green Deal has set ambitious targets for reducing net emissions by at least 55% by 2030, when compared to 1990 levels, and to be the first climate neutral continent by 2050. The agreement of the global long-term aspirational goal (LTAG) for international aviation at the International Civil Aviation Organisation (ICAO), which includes a collective global goal of net-zero carbon emissions by 2050 further demonstrates the level of ambition of states and industry alike.

Sheila Remes, Vice President, Environmental Engagement and Business Development, Boeing, said: “Significant progress is required for Ireland to be able to develop eSAF at scale, particularly to ensure renewable power is available in the scale required production of hydrogen in the required quantities. The increased levels of offshore wind power generation that Government initiatives are targeting by 2030 will put the country in a much stronger position to develop a domestic SAF industry.”

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/25102023/potential-for-255-billion-saf-industry-in-ireland-by-2050/