Ireland can become a world leader in SAF production, a new report commissioned by aviation leasing company Avolon.
Power-to-Liquid (Ptl) production of eSAF, a synthetic fuel made from green hydrogen and biogenic carbon dioxide, presents the biggest opportunity for Ireland in the production of sustainable aviation fuel (SAF), according to the report backed by companies including Shannon based aircraft lessor Avolon, Boeing and Orix Aviation.
Ireland has the potential to generate approximately €2.5bn in revenue annually from SAF production by 2050.
Setting up 10 SAF production facilities to ensure demand for the fuel is met the sector could provide 1,000 jobs by 2050, both directly and indirectly.
SAF can be produced from sources such as vegetable oils, animal fats, and a novel process combining green hydrogen with carbon dioxide.
Ireland’s offshore wind farms can support the production of green hydrogen needed for SAF manufacturing.
The study suggests that the Irish SAF sector could contribute significantly to reducing carbon emissions from the aviation industry and meet EU-mandated SAF volumes. Collaborative efforts, investment, and policy support will be crucial to realise this opportunity.
To meet EU-mandated SAF volumes alone, Ireland will need about 10 SAF plants each capable of manufacturing 80,000 tonnes a year of SAF.
Airlines have long complained that while politicians are mandating use of SAF it is not available. Key policy initiatives listed in the report to be prioritised by the Government and other stakeholders include:
- Targets: Include sustainable aviation in climate action plans to strengthen Ireland’s position as a renewable fuel aviation hub.
- Incentivise: Incentivising mechanisms are crucial for a viable PtL business case to stimulate the development of both SAF and hydrogen: capital allowances, tax credits, guaranteed minimum pricing, investment incentives (e.g. via EII or SCI schemes).
- Research and Development: Funding and promotion of SAF technologies leveraging Ireland’s third-level institutions and Government entities such as Enterprise Ireland, Science Foundation Ireland and SEAI.
- Reforming planning process: Implement a comprehensive and systematic approach in the planning process for SAF production plants, taking into account the potential for future energy parks and circular economy development in Ireland.
- Storage and transport: Invest in hydrogen storage and transport, and solving the electricity congestion issues through more flexible use / development of the grid.
- Collaboration: Collaboration between public and private sector is critical to mobilise the required investment. Cross-departmental Government relationships are also essential (DECC, DOT, DAFM) to ensure comprehensive policy framework.
The study can be downloaded here:
The study can be downloaded here:
https://www.avolon.aero/insights
