PowerPoint Presentation...3,4394 kt 960 kT 1,248 kT 1,520 kT 7,164 kT 3,510 kT 4,073 kT 0.1-0.3 >0.3...
Transcript of PowerPoint Presentation...3,4394 kt 960 kT 1,248 kT 1,520 kT 7,164 kT 3,510 kT 4,073 kT 0.1-0.3 >0.3...
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SAF competitiveness and scale-up
Christoph Wolff
Chief Development Officer, European Climate Foundation – World Economic Forum
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0World Economic Forum’s Clean Skies for Tomorrow ambition
4: Create a scalable SAF market place
5: Develop a blueprint for financing
3: Align on an industry-backed policy proposal
Ground work to create a fact base Enablers for scale-up
2: Democratize global SAF supply
1: Assess SAF feasibility andsustainability
Design a SAF market-place and make a wave of first transactions, design and pilots in 2020, 1st wave of transactions in 2021
Develop a blueprint for the financing of the transition to SAF, based on dialogues between aviation players and the finance community
Align on proposed policy interventions to trigger learning curve effects and economies of scale that could benefit the rest of the industry
Design a specific, comprehensive and actionable approach to scaling-up SAF in India and produce a blueprint for other regional pilots
Refine and strengthen existing analyses on feedstock availability, technology readiness and production cost into a concise synthesis
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Steering Committee
And more…
Knowledge Partners Advisory PartnersSecretariat Community
Clean Skies for Tomorrow is a Global Coalition
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0Sustainable aviation fuel expansion is a global theme
XShare of emerging markets total energy demand, percent
0
200
100
300
400
500
550
50
150
250
350
450
2020 25 30 35 40 45 2050
Brazil
India
China
Other
emerging
markets
Other
44% 45% 50% 53%
5%
7%
3%
4%
3%
Aviation energy demand, million tons of jet fuel
CAGR '20-'50
SAF in the focus
Advanced biofuels require biomass such as used cooking oil, agricultural residues or municipal solid waste
E-fuels / synfuel require captured carbon (from industry point source or directly from the air), and green hydrogen from renewable electricity
Many emerging markets are well positioned to provide feedstock and green electricity at competitive costs
Critical importance of emerging markets
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Current Planned (2021)
Emerging markets are major driver of global demand AND supply
• SAF is the only large-scale decarbonization option for the industry until 2040+
• There is enough sustainable feedstock available to power aviation in 2030 and beyond
• Places best suited for large scale SAF production include India, LatAm, MENA and ASEAN
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SAF competitiveness and scale-up
Kamal Hingorani
Chief Customer Officer – SpiceJet
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0Goal: Fly 100 million domestic passengers on SAF by 2030
India stands committed to reduce carbon emissions as committed in the Paris Agreement. The aviation industry, while a minor contributor, will play a crucial role by way of optics.
India has become the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passenger market by 2024.
We have set upon ourselves a target to transport 100 million domestic passengers by 2030 on a 25% SAF blend; requiring 0.9 million tons of SAF.
To achieve the above, price gap between SAF & ATF must be bridged, for which the primary contribution has to be made by the Government of India by way of tax polices & regulatory mechanisms.
A public-private coalition through the World Economic Forum is now underway
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SAF production costs 50-150% more than fossil jet fuel Additional levers can be explored with other stakeholders such as airport authorities, e.g.,
differentiated airport landing fees for SAF flights or take-off charges on fossil jet fuel flights
Government contribution Passenger contribution
Gap to fossil jet fuel
Reduce taxes on SAF
flights
Redistribute air ticket
charges to airlines on SAF
flights
Provide funding for plants
Passenger contribution
Potential levers to bridge the gap to fossil jet fuelUSD bn
Bring taxes down (in line with other biofuels)
Redistribute share of fees e.g., passenger service fee, development fees
Share of capex required for production plants
Ambition in India:
100million passengers fly domestically on SAF by 2030
Scaling-up SAF requires a strategy to bridge the cost gap
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Approx. USD 4 bn GDP impact
ROUGH ESTIMATES BASED ON PRODUCTION OF 1 MT OF SAF IN INDIA
Cleaner skies with less open-air burning
Additional income for farmers (+10-15%)
100,000+ new green jobs
Catalyst for efficient waste management
Enhanced energy security
360 degree approach required
India SAF expansion
E2E supply chain and
infra-structure
Policy-making and regulation
Feedstock and
technology
Buyers of SAF and
side products
Financial institutions
Corporate and private
end customers
Scaling SAF industry would generate substantial GDP impact
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Example India: Concentration of municipal waste and agricultural residues shows economically viable potential for 11 Mt of SAF
SOURCE: ACRE McKinsey solution
Practical feedstock availability… … allows for significant SAF production
3,4394 kt
960 kT
1,248 kT
1,520 kT
7,164 kT 3,510 kT
4,073 kT
0.1-0.3>0.3
MSW availability, Mt of SAF output
Kolkata
Maharashtra
Bangalore
Telangana
Chennai
Delhi
Visakhapatnam
Lucknow
Kanpur
Jaipur
Ahmedabad
Nagpur
Surat
Mumbai
Pune
Hyderabad
Agriculture residues (t/100km²)
2
50
150
250
600
1,000
2,000
4,000
8,200
65,000
xx kt Total feedstock in hotspot
Plants based on MSW closely located to large cities33Plants based on agricultural residues in six major hotspots 80
11 million tons SAF output1
1. Assuming average of 77% yield for AtJ and 55% for Gasification/FT and total output of 0.15 Mt p.a., ~0.6 Mt required feedstock p.a.
ROUGH ESTIMATES
India case example can serve as a blueprint for other regions
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Thank You