Author: Contact ESG0

Project Overview

Chungnam province has received national approval to proceed with a demonstration plant that will transform captured carbon dioxide into synthetic sustainable aviation fuel. The thirty month design and permitting phase will begin next year, paving the way for construction in 2027 and first production in 2030. The initiative commands an investment of roughly ninety five million United States dollars and will be located in the coastal city of Boryeong adjacent to an existing wet carbon capture installation.

Technology Approach

Led by LG Chem, the consortium will capture approximately four thousand tonnes of carbon dioxide from a local coal fired power station operated by Korea Midland Power. Using renewable electricity, the carbon will be combined with green hydrogen generated on site to synthesise about seven hundred tonnes of eSAF per year. Partners include the Korea Institute of Science and Technology and HD Hyundai Oilbank, bringing together expertise in catalysis, hydrogen handling and fuel logistics.

Economic and Climate Upside

Local authorities anticipate annual economic activity of over three hundred million United States dollars once the process is scaled after 2034. The pilot plant will also provide valuable operational data that can shorten deployment timelines for future full scale facilities, supporting the national objective to halve emissions from 2018 levels by 2035.

Non Obvious Insight

Locating the eSAF unit beside a large carbon capture system reduces not only feedstock costs but also the energy penalty often associated with compressing and transporting carbon dioxide. This colocation model could become a blueprint for repurposing existing industrial sites rather than building entirely new infrastructure.

Conclusion

By connecting proven carbon capture technology with renewable hydrogen synthesis, Chungnam province is positioning South Korea at the forefront of advanced aviation fuel innovation while opening new avenues for regional economic growth.

source – eco-business.com

The United Kingdom SAF mandate gains a powerful ally as Argus Media publishes the first assessed price for tradeable SAF certificates. The benchmark captures transactions involving certificates generated when compliant fuel made from hydrotreated esters and fatty acids is delivered into domestic supply. Transparent pricing strengthens confidence among fuel suppliers and obligated parties.

How the Certificate System Works

Each certificate represents the carbon benefit of one physical tonne of SAF. Obligated jet fuel suppliers can reach the mandated two percent blend in 2025 either by buying fuel, securing certificates, or paying a buy out fee. Flexible mechanisms let firms choose the most economical path while still reducing emissions.

New Price Signals for Stakeholders

Airlines, fuel producers, banks, and technology developers now have a real time reference for the value of carbon reduction delivered through SAF. Forward curves built on the Argus assessment will help structure financing, enabling producers to lock in returns and reach final investment decision sooner. Greater certainty should accelerate plant construction across the country.

What Airlines Can Do Now

Carriers can compare three numbers side by side: the cost of purchasing blended fuel at the airport, the traded price of certificates, and the published buy out rate. Having all figures visible empowers procurement teams to design the lowest cost strategy for every route rather than relying on estimates.

A Less Obvious Insight

A transparent certificate price reveals the implicit carbon value assigned by the aviation market. If that value rises faster than feedstock prices it could motivate investors to explore advanced pathways such as power to liquid e SAF, where production costs remain high today. The benchmark therefore doubles as an early indicator of when novel technologies might become commercially viable.

Conclusion

Reliable certificate pricing completes the policy toolkit supporting United Kingdom SAF deployment. Participants can optimise compliance, financiers can model cash flows, and producers can scale confidently. Transparent data is proving once again to be a simple yet powerful catalyst for a cleaner aviation sector.

Source – Argus Media

Blending Targets at a Glance

India has approved definite blending targets for Sustainable Aviation Fuel SAF in conventional jet fuel. International flights departing the country will use one percent SAF in 2027, two percent in 2028, and five percent by 2030. The phased plan offers industry time to scale technology and supply chains.

The new policy concentrates on international departures because those flights already meet the global CORSIA program. Matching domestic law with that framework reduces administrative effort for airlines and regulators alike. Public refineries intend to produce early batches using waste cooking oil, forestry residue, and agricultural by products.

Support Ecosystem Already Taking Shape

Refiners and Airlines Align

Indian Oil has secured international certification at its Panipat refinery, creating a home grown source of compliant SAF. Carriers such as Air India are negotiating long term offtake agreements that guarantee volume. Clear demand signals encourage banks to finance additional projects, accelerating learning and lowering unit costs. Government run flight training academies will use SAF blends in training aircraft, building familiarity among future pilots.

Collaborative Research Moves Upstream

Indian universities and engine manufacturers have created joint labs to evaluate diverse native feedstocks such as pongamia and algae. Early findings show several local species produce oils with favourable energy density and low freezing point, hinting at future fuels that could outperform imported alternatives.

A Less Obvious Advantage

The CORSIA baseline year is 2019. Any capacity growth above that year forces airlines to buy offsets. Each litre of SAF blended now directly trims that future bill, acting as an automatic hedge against unpredictable carbon credit prices while improving corporate environmental performance.

Conclusion

India is translating climate commitment into clear commercial opportunity. A transparent timeline, early certification, and proactive collaboration across sectors are positioning the nation to lead regional green aviation. Farmers, refiners, investors, and passengers will benefit as sustainable fuel becomes standard at Indian airports.

Source – NDTV

A Milestone Fifteen Years in Making

At Freedom Pines Fuels in rural Georgia, LanzaJet has started producing Sustainable Aviation Fuel derived entirely from ethanol, proving that a commodity once destined for road transport can now power long haul flights. Turning a widely available bio based molecule into certified jet fuel took fifteen years of laboratory work, pilot plants, and regulatory testing. The payoff is significant: an entirely new pathway that avoids the feedstock limits confronting traditional lipid based SAF.

How Alcohol Becomes Jet Ready

The Alcohol to Jet process removes oxygen from ethanol and strings the remaining carbon and hydrogen atoms into longer chains suitable for turbine engines. Dehydration converts ethanol to

ethylene, oligomerisation knits the molecules into kerosene length chains, and hydrogenation perfects their stability. A useful insight is that each step has been borrowed from existing petrochemical operations, meaning refineries can retrofit familiar equipment rather than build exotic reactors.

Flexible Feedstocks, Flexible Futures

Because ethanol can be brewed from many sources including agricultural residues, municipal solid waste, or captured carbon, nations with very different resource bases can participate in aviation decarbonisation. The same distillation tanks that supply beverage grade alcohol in Brazil or industrial ethanol in India could feed a regional jet fuel plant, linking farmers to high value export markets.

Beyond CO2: Economic Multiplier Effects

The Georgia facility created hundreds of construction roles and now supports dozens of permanent technicians, mechanics, and logistics specialists. More subtly, it has demonstrated that existing railcar and pipeline networks designed for ethanol distribution can deliver SAF blending components to remote airports without new tanks or standards. This repurposing of infrastructure shortens deployment timelines and lowers capital requirements across the sector.

Conclusion

LanzaJet has converted a common bio commodity into a drop in jet fuel, opening an expandable route toward cleaner skies and vibrant rural economies. The first commercial gallons are only the beginning.

Source – Interesting Engineering

Background

Since 2021 global airlines have prepared for the Carbon Offsetting and Reduction Scheme for International Aviation, the worldwide mechanism created by the International Civil Aviation Organization. At the Asia Climate Summit in Bangkok in July 2025 senior carbon market specialists reported that grey areas around eligibility and accounting are finally shrinking. Singapore, the European Union, Japan and Qatar have already signalled early enforcement, giving the market stronger demand signals for CORSIA eligible credits. Speakers explained that the Article Six rulebook now guarantees that once a corresponding adjustment is issued it cannot be revoked, increasing confidence among project developers.

Key messages from the summit

· Supply pipelines are expanding, with forecasts of up to two hundred seventy four million eligible credits between 2027 and 2030, comfortably above conservative demand projections.

· Price discovery is progressing, recent auctions cleared near twenty two dollars per metric ton, well below earlier estimates.

· Host countries are issuing Letters of Authorization more quickly, cutting approval time from several months to only weeks in many cases.

Non-obvious insight

A practical takeaway emerged: airlines can reduce future compliance cost swings by arranging forward purchase contracts that activate only after credits receive final CORSIA approval. This built in safeguard lowers counterparty risk while locking todays prices, a tactic already adopted by Qantas and a handful of Asian peers yet still overlooked by many global competitors.

Digital enablement

Delegates also reviewed new Article Six registries that apply blockchain style technology to track ownership in real time. Early adopters could trim monitoring reporting and verification expenses by up to thirty percent, releasing funds for sustainable aviation fuel investments and other decarbonisation projects.

Conclusion

Growing regulatory clarity, expanding supply and smarter contracting tools are transforming the CORSIA scheme from perceived burden into strategic opportunity. Airlines that engage early stand to cap costs, unlock climate finance and accelerate the journey toward net zero flight.

Source – Quantum Commodity Intelligence