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CEPSA, IBERIA, IBERIA EXPRESS, VUELING, AND BIOCIRC PROMOTE SAF AS A NATIONAL PROJECT TO LEAD SUSTAINABLE AIR TRANSPORT

The companies advocate the adoption of a national SAF strategy that places this energy vector among the priorities of the energy and industrial policy agenda.

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CEPSA, IBERIA, IBERIA EXPRESS, VUELING, AND BIOCIRC PROMOTE SAF AS A NATIONAL PROJECT TO LEAD SUSTAINABLE AIR TRANSPORT
From left to right, Carlos Gómez, CEO of Iberia Express, Carolina Martinoli, CEO of Vueling, Marco Sansavini, CEO of Iberia, Rosario Sánchez, Secretary of State for Tourism, Maarten Wetselaar, CEO of Cepsa, and Margarita de Gregorio, CEO of BIOCIRC.

Cepsa, Iberia, Iberia Express, Vueling, and BIOCIRC (Spanish Association of Biocircularity) presented a report today outlining 16 economic, regulatory, and public-private collaboration measures aimed at boosting the production and consumption of Sustainable Aviation Fuels (SAF) -an alternative fuel that helps reducing the aviation sector's environmental impact by cutting CO2 emissions- with the goal of positioning Spain as a European leader in this emerging technology and in sustainable tourism.

The conditions available in Spain for SAF production represent a great opportunity for the national economy. For this reason, the four entities suggest making SAF development a national priority, positioning Spain as a European hub and placing it at the forefront of sustainable tourism and the energy transition

The report 'How to make Spain the European SAF leader: Roadmap to accelerate the decarbonization of air transport' points out that the new industry for producing this sustainable fuel will require an investment of 22 billion euros to build facilities and generate 270,000 direct, indirect, and induced jobs by 2050. The development of this industry could thus contribute 13 billion euros to Spain’s GDP just from the construction of the plants, with an additional 42.851 billion euros from their operation until 2050 (along with the corresponding investment and jobs for this phase).

The report highlights the need to establish a regulatory framework that provides safety to the agents involved, allowing them to invest with confidence in this emerging industry. It also notes the importance of jointly assuming the necessary investments and cost increases for SAF to be a sustainable and viable solution in the short term, as its price is between 3 and 5 times higher than fossil-origin kerosene. Likewise, the development of innovative technologies for its production, as well as the deployment of industrial facilities with the appropriate capacity to meet the demand for SAF, is essential to take advantage of the potential of the raw material existing in the national territory.

The study indicates that, although the announced production capacity of SAF with the most commonly used technology today, HEFA, could cover the needs for 2030, it would fall short of meeting the demand for 2040 and the needs for synthetic fuels e-SAF (obtained from green hydrogen).

To guarantee the energy independence and decarbonization of Spain's aviation sector and access to aviation fuels until 2050, it would be necessary to build three HEFA biofuel plants, five synthetic fuel plants, and at least 24 SAF AtJ (Alcohol to Jet) and FT (Fischer-Tropsch) biofuel plants. The report also highlights the importance of locating SAF production plants near raw materials, contributing not only to decarbonizing the economy but also to the social and economic development of rural territory. Therefore, it is essential to establish a legal framework that facilitates the necessary investments, as well as incentivizing the development of new technologies for the production of SAF, key to achieving the goals beyond 2030.

The report emphasizes the importance of coordinating agreements among players across the value chain, including public administrations, to ensure the sustainable development of this industry. Therefore, it calls for the streamlining of permits and authorizations, the development of airport infrastructures, as well as the establishment of a European mechanism for the traceability of SAF. The report also mentions the challenges of accessing the various types of waste used as necessary raw materials due to their high dispersion, and the lack of a centralized body that facilitates their management, as well as the absence of incentives or obligations that support this effort.



International commitment to SAF to accelerate the decarbonization of the aviation sector
The new renewable fuels play a key role in achieving the targets set out in the Fit for 55 package, which the European Commission has established to reduce greenhouse gas emissions by 55% in 2030 (compared to 1990) and achieve climate neutrality by 2050. The package includes initiatives such as ReFuelEU Aviation, which requires aviation fuel to progressively incorporate SAF, from 2% starting next year to 70% by 2050. IATA, the International Air Transport Association, sees SAF as critical for the industry to meet its sustainability goals. In 2016, only 500 flights had tested the use of SAF. By 2025 there are expected to be 1 million flights using this sustainable fuel.

SAF allows to reduce CO2 emissions by more than 80% compared to conventional kerosene consumption (taking into account its entire life cycle, from production to consumption). In this regard, according to the report, it is estimated that CO2 emissions from the aviation sector in Spain could be reduced by 14 million tons by 2050, which would boost the energy transition and circular economy, through the use of waste that would otherwise end up in landfills.

Spain has the potential to lead in SAF production, but other countries such as Germany, the United Kingdom or the United States are strongly betting on the development of this new energy vector. In fact, to date, all of them have initiated measures through economic and regulatory incentives and set more ambitious goals for SAF supply, far exceeding what is stipulated in European regulation. As Spain may fall behind in a market that will be global, institutional support is necessary to lead this sector.
 
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