The SAF, sustainable jet fuel, a new business and employment niche in Spain

That energy decarbonization is a business niche in Spain and no one doubts it.

Oliver Thansan
Oliver Thansan
20 June 2023 Tuesday 16:35
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The SAF, sustainable jet fuel, a new business and employment niche in Spain

That energy decarbonization is a business niche in Spain and no one doubts it. Different technologies fight to lead this growth and as such the SAF, the Anglo-Saxon acronym for Sustainable Air Fuel or sustainable fuel for aviation in Spain, is one of the technologies that has gained the most momentum in recent months.

This low-emission kerosene is one of the best allies that the aviation sector currently has to achieve the emission reduction targets required by the European Union for 2030 and 2050. Only in Spain will this process can generate a demand of five million tons of SAF per year in 2050.

But in addition to being a large consumer, "Spain can become one of the strategic poles of the continent in the production of this waste-derived fuel," according to a study presented this Wednesday by PwC for Iberia and Vueling.

Spain is a country with a large amount of waste, raw material for SAF, which together with the cheap energy offered by renewables makes it one of the countries where the production of this green kerosene can be much more efficient. In this environment, PwC has estimated that with the start-up of between 30 and 40 production plants throughout the country, Spain would be able to cover all its national demand and would have the capacity, in addition to producing large volumes to export to the international market.

The study estimates that this new economic niche could contribute up to 56,000 million euros to GDP by 2050, only taking into account the impact of the construction and start-up of 32 production plants. To which add 270,000 new jobs.

“Spain has everything it takes to become a great SAF producer. An enormous wealth in forest, agricultural and livestock residues that are used to produce the biological SAF. And, furthermore, it is on its way to spearheading the production of green hydrogen that, among other things, will be used to produce synthetic SAF”, pointed out Teresa Parejo, Iberia's director of sustainability, during the presentation of the report.

For that to happen, a determined commitment from the country is necessary. At present, with the existing infrastructures, it would only be possible to cover 0.05% of the global demand for said fuel. A conjunction of interests between companies and the public sector that involves an investment of around 22,000 million euros. An effort advocated by the Spanish airlines that have promoted the study. "We have a great opportunity to lead the production of SAF at a European level, although it requires a collective effort from all the actors to encourage its production," insisted Franc Sanmartí, Vueling's Director of Sustainability.

The production of SAF of organic origin, in addition to being a source of business, can become the solution to an existing problem in certain areas such as Andalusia, Castilla y León, Castilla La Mancha, Catalunya, Aragón and Extremadura where excess waste from labor agricultural and livestock farming have become a problem on which the Damocles sword of European sanctions hangs.

Iberia and Vueling and the rest of the IAG group airlines have committed to using 10% of SAF in 2030. This amount is practically double the amount required by national and international regulations for that year. Only with its demand would the SAF market in Spain be promoted. Both companies sell it as an attraction for safe clients for those who sign up to take the leap of this investment. As long as this is not the case, the consumption of the IAG group will move to other countries such as the United Kingdom, which is strongly investing in the SAF and which is where the strategic base of British Airways is located, as the corporate director of Iberia warned a few weeks ago. , Juan Cierco.