Sasol and Topsoe plan sustainable aviation fuel venture (updated)

Sasol

21/06/2023 17:43

(Adds CEO comments in paragraphs 7 and 10)
       June 21 (Reuters) - South African petrochemicals firm
Sasol  SOLJ.J  said on Wednesday it had agreed to form a
sustainable aviation fuel (SAF) joint venture with Danish
decarbonisation company Topsoe as part of a global drive to
combat climate change.
    Sasol, the world's biggest producer of fuels and chemicals
from coal and gas, is working to cut its emissions by 30% by
2030. Topsoe is a leading global developer and supplier of
decarbonisation technology, catalysts and services for the
transition to clean energy. 
    The aviation industry contributes more than 2% of global
energy-related emissions, according to the International Energy
Agency. 
    SAF, made from non-petroleum materials such as agricultural
waste, has similar properties to conventional jet fuel but with
a significantly lower carbon footprint.
    The proposed Sasol-Tospoe joint venture plans to lay the
foundation for the industrial production of SAFs, the two
companies said in a joint statement.
    "The purpose of the Sasol Topsoe JV is to develop, build,
own, and operate sustainable aviation fuel plants, and market
sustainable aviation fuels derived primarily from non-fossil
feedstock, utilising green hydrogen, sustainable sources of
carbon dioxide and biomass," the companies said.
    The establishment of the joint venture is subject to
approval by authorities in their respective jurisdictions, the
two companies added. 
    Sasol CEO Fleetwood Grobler told Reuters the regulatory
approvals should be in place by the end of this year.
    The European Union has set rules that will require fuel
suppliers to ensure they can make 2% of fuel available at EU
airports SAF by 2025, rising to 6% in 2030, 20% in 2035 and
gradually to 70% in 2050.
    But airlines have criticised the move, saying a global
approach to increasing production of SAF - which is currently
two to four times more expensive than traditional jet fuel - or
tax incentives like those introduced by the United States under
the Inflation Reduction Act would be more effective.
    "There is going to be huge demand for SAF as the regulatory
measures come into effect. At the moment, sustainable aviation
fuel is just a fraction of the jet fuel sold every year,"
Grobler said.
    

 (Reporting by Nelson Banya
Editing by Mark Potter and Sharon Singleton)
 ((Nelson.Banya@thomsonreuters.com;))