Resource logo with tagline

Boeing buys SAF from Neste

Boeing will buy 7.5 million gallons of blended SAF from Neste this year.

Boeing has agreed to purchase 7.5 million gallons (over 22,700 tons) of blended Neste MY Sustainable Aviation Fuel in 2024 to support its U.S. Commercial Airplanes business operations in reducing its greenhouse gas (GHG) emissions.

The volume of Neste’s sustainable aviation fuel (SAF) is part of Boeing’s total purchase of 9.4 million gallons of blended SAF, representing Boeing’s largest annual SAF purchase to date, 60% more than in 2023, according to a news release.

The fuel blend consisting of 30% SAF, made from renewable waste and residue raw materials such as used cooking oil, and 70% conventional jet fuel, will be supplied to Boeing by EPIC Fuels and Avfuel to support the Boeing ecoDemonstrator program and Boeing’s U.S. commercial operational flights through 2024.

“As our focus remains on safety and quality, sustainability continues to be a priority. Sustainable aviation fuel is essential to decarbonize aviation. About 20% of our fuel usage is a SAF blend, and we continue to increase our use of this fuel to encourage growth in the SAF industry. We are also working to make SAF more available and affordable to our commercial airline customers through collaboration, investment, research and policy development,” said Ryan Faucett, vice president of environmental sustainability at Boeing.

“Sustainable aviation fuel is a key lever to reduce aviation emissions. Working together with aviation sector leaders like Boeing is crucial in accelerating SAF usage and production. We are proud to support their efforts working together with our partners EPIC Fuels and Avfuel,” said Carrie Song, senior vice president, commercial, renewable rroducts at Neste.

The total volume of blended SAF purchased will be supplied to Boeing’s commercial operations directly or through book-and-claim. Boeing will receive 4 million gallons (around 12,000 tons) of blended SAF produced by Neste into its fuel farms in the Pacific Northwest. EPIC Fuels, a Signature Aviation company, will supply 2.5 million gallons and Avfuel will provide 1.5 million gallons of blended SAF from Neste.

Boeing will also purchase SAF certificates corresponding to the emission reduction provided by the use of 3.5 million gallons of blended SAF produced by Neste through a book and claim system. Book and claim is an accounting process in which a company purchases SAF certificates to displace conventional jet fuel. Instead of putting the fuel into a Boeing fuel farm, distributors will deliver it to nearby airports for use by airlines and other carriers ensuring the corresponding SAF use and related GHG emission reductions. Based on Boeing’s book-and-claim purchases, EPIC Fuels will supply the 3.5 million gallons of blended SAF.

Unlock this article

The content you are trying to view is exclusive to our subscribers.
To unlock this article:

You might also like...

Par Pacific to invest $90m in Hawaii renewable fuels facility

The renewable fuel facility is expected to produce approximately 61 million gallons per year of renewable diesel, sustainable aviation fuel, renewable naphtha and liquified petroleum gases.

Par Pacific Holdings, Inc. plans to invest approximately $90m to develop the state’s largest liquid renewable fuels manufacturing facility at its Kapolei refinery.

The project relies on the Kapolei refinery’s highly experienced operating team, existing tank storage and related logistics, as well as available hydrogen from current refining operations, a key requirement for low-carbon renewable fuels production. As a result, this project is expected to be completed for less than $1.50 per gallon of annual operating capacity and is expected to be commissioned in 2025. The unit can produce up to 60% sustainable aviation fuel in a first step toward decarbonizing Hawaii’s significant air travel market.

“This project represents a key milestone in our renewable fuels strategy, which supplements our conventional fuels production in Hawaii. The expansion ensures that Par Hawaii, with its high-paying local manufacturing jobs, will be the leading supplier of liquid fuels to the Hawaii economy now and into the future,” said William Pate, Par Pacific’s CEO.

In total, the renewable fuel facility is expected to produce approximately 61 million gallons per year of renewable diesel, sustainable aviation fuel (SAF), renewable naphtha and liquified petroleum gases (LPGs). If market conditions are supportive, yield can be shifted to over 90% renewable diesel. These renewable fuels lower greenhouse gas emissions while providing reliable electricity and transportation fuels to Hawaii consumers.

“Given this project’s feedstock requirements, the state is well positioned to drive an additional major economic benefit by creating a market for locally grown oil seed crops. The creative redevelopment of a portion of our refining system is an excellent example of our team’s technical strength to deliver renewable fuel solutions that supplement our existing operations. I am very proud of the team’s contributions and look forward to continuing our efforts to diversify and decarbonize energy sources for our community,” said Eric Wright, president of Par Hawaii, Par Pacific’s local subsidiary.

The announcement coincides with Par Pacific’s authorization from the U.S. Foreign-Trade Zone Board to use foreign-sourced vegetable oil to supplement locally-sourced renewable feedstocks. Par Hawaii is working with Hawaii-based Pono Pacific in the planting of camelina crops to test the suitability of that oil seed for state production. Par Pacific is committed to supporting the state agricultural sector in the development of oil seed crops to support decarbonization of the local economy.

In 2022, Par Pacific and Hawaiian Airlines, the largest air carrier in the state, announced a joint feasibility study to explore ways to make sustainable aviation fuel commercially viable. Today’s announcement marks a significant milestone in our shared efforts to produce renewable fuels in Hawaii. The companies look forward to engaging with stakeholders across the community to advance policies which enable the use of renewable fuels in Hawaii.

Par Pacific also is assessing development opportunities at the former Chevron refinery location in Kapolei, near its current operations, including projects that would further support the state’s efforts to decarbonize its electrical grid.

Read More »

Rolls-Royce and easyJet test hydrogen jet engine

The UK ground test was conducted on an early concept demonstrator using green hydrogen created by wind and tidal power.

Rolls-Royce and easyJet today have successfully tested an aero engine on hydrogen, according to a press release.

The ground test was conducted on an early concept demonstrator using green hydrogen created by wind and tidal power.

The companies have ambition to carry out flight tests, the release states.

The test took place at an outdoor test facility at MoD Boscombe Down, UK, using a converted Rolls-Royce AE 2100-A regional aircraft engine. Green hydrogen for the tests was supplied by the European Marine Energy Centre, generated using renewable energy at their hydrogen production and tidal test facility on Eday in the Orkney Islands.

Following analysis of the ground test the partnership plans a series of rig tests leading up to a full-scale ground test of a Rolls-Royce Pearl 15 jet engine.

Read More »

Visolis and Ginko Bioworks team up on synthetic rubber and SAF ingredient production

The two companies are leveraging each other to achieve commercial development of a monomer used in the production of synthetic rubber and SAF.

Visolis, a California-based sustainable materials company, has formed a partnership with cell programming and biosecurity firm Ginkgo Bioworks to reach commercial production of a key feedstock ingredient used to make bio-based isoprene and SAF, according to a news release.

Isoprene is a monomer used for commercial scale synthetic rubber production.

“Achieving the production of bio-based isoprene at scale represents a significant step toward decarbonizing tire manufacturing,” the release states. “Isoprene can also be used as an intermediate for high performance, lower carbon intensity sustainable aviation fuel (SAF) production.”

Achieving bio-based isoprene production at scale is difficult because the molecule is highly volatile and combustible.

“Visolis has developed a novel process by using a more stable intermediate, making isoprene through a two-step manufacturing process and enabling more efficient and reliable production,” the release states. “Through the partnership with Ginkgo, the two companies are working to further optimize the efficiency of this biomanufacturing process.”

Read More »
exclusive

Green hydrogen developer in active discussions for California FID this year

A green hydrogen developer is in active discussions with counterparties as it pursues a final investment decision for its first project.

Houston-based green hydrogen developer Element Resources is in active discussions to reach FID this year on its first green hydrogen project slated for Lancaster, California.

The company had engaged Houlihan Lokey in recent months to lead a capital raise for the project, according to two sources familiar with the matter. The Houlihan mandate had involved raising non-dilutive debt, a process that is believed to have been shelved, said one of the sources.

“We are steadily working our way to an FID this year and are pulling together all parts of the project,” Element CFO Avery Barnebey said via email in response to inquiries. He declined to comment further.

A Houlihan representative did not respond to an email seeking comment.

The Lancaster facility, which is targeted to begin commercial operations in early 2025, will be built on 1,165 acres and consist of 135 MW of solar-powered electrolysis capacity, according to the company’s website. At full capacity, the 18,750 mt per annum of hydrogen produced by the facility will serve the growing demand for clean mobility fuels as well as clean energy for manufacturing.

Element is led by founder and CEO Steve Meheen, an oil & gas industry veteran. Barnebey is a former director of corporate development at California Resources Corporation.

Read More »
exclusive

Pennsylvania RNG firm outlines strategic outlook

A growing RNG developer, owner and operator based in Pennsylvania is anticipating a liquidity event on the part of its private equity owner — once it has locked down a “critical mass” of projects.

Vision RNG, a developer of US RNG projects, could see its next project reach commercial operations in Tennessee in a line of projects in southeastern and mid-western states, CEO Bill Johnson said in an interview.

Vision Ridge Partners, a private equity firm, is the majority owner of the company. Management owns the remaining minority stake.

The company is still in early stages and would likely need to get something like six projects to COD before a liquidity event.

“Locking down projects creates a lot of value,” Johnson said, noting that Vision Ridge will likely follow a typical private equity monetization pattern.

The company’s project at Meridian Waste’s Eagle Ridge Landfill in Bowling Green, Missouri is fully operational. It uses 1,500 scfm of landfill gas (LFG) and produces 375,000 MMBtu of RNG annually.

That mid-sized project is similar in scale to what is being developed in Tennessee, which will likely be the next project to reach COD, Johnson said, declining to provide details on exact location.

“We’re working on developing other opportunities with some of the largest publicly owned landfill companies in the country,” Johnson said.

Projects require between $20m and $60m in capex, ranging from small to large, Johnson said. Vision Ridge takes care of the company’s equity requirements.

Debt options are being considered on a project-by-project basis, he said. Debt tends to range from 50% to 70% of total spend.
“We’ll look to put reasonable project debt on these,” he said.

Vision has not to date retained the services of an investment bank, Johnson said.

Vision is pursuing opportunities in Kentucky, Alabama, South Carolina and Oklahoma, and will evaluate suppliers of services and equipment for each. The location-agnostic company is also open to new relationships with potential future financial and strategic acquirers.

“If you are a private equity group, you’re a potential buyer of the company at some point, so we would be happy to know them and keep their interest in us up,” Johnson said. An acquirer would not necessarily need to have expertise in RNG.

M&A potential

M&A of projects is an option on the table, Johnson said. But returns are better if Vision develops its own projects; and a more challenging macroeconomic environment makes acquisitions somewhat unlikely.

“With the market premiums being paid, I see us continuing to keep our head down and focusing on organic growth,” Johnson said.

Johnson said he expects to see continued consolidation in the greater market. Many large strategic and midstream companies have yet to make significant buys in RNG.

He pointed to bp’s acquisition of Archaea Energy as a significant milestone in the RNG market.

“There’s quite a number of potential acquirers,” Johnson said. “The market is kind of fundamentally and always will be under-supplied and over-demanded.”

Vision would potentially be open to a merger with a portfolio company of a strategic or PE investor, Johnson said.

Read More »
exclusive

Hydra Energy raising equity and debt capital for hydrogen refueling infrastructure

The hydrogen-as-a-service provider for commercial trucking fleets is pursuing an equity raise that will unlock a debt facility for scaling up hydrogen refueling infrastructure in Western Canada.

Hydra Energy, a hydrogen-as-a-service provider for commercial trucking fleets, is in the midst of a CAD 14m equity capital raise.

The Vancouver-based company is pursuing the equity raise in support of its Prince George hydrogen fueling station, which is set to be operational in 2024 and would be the largest in the world, Hydra CEO Jessica Verhagan.

The equity portion of the financing is needed to unlock an additional CAD 150m debt facility to complete initial scale-up of the company’s planned hydrogen corridor along Highway 16 in Western Canada, Verhagan added.

Verhagan said the company is not working with a financial advisor on the capital raise but could issue RFPs for advisory services in the future. She declined to name the provider of the proposed debt facility, apart from clarifying that it was not government-sponsored.

“To date, Hydra has been signing up commercial fleets and building out its initial hydrogen refuelling infrastructure throughout Western Canada, but the company is about to announce expansion throughout the rest of the country via licensing to a national fossil fuel distributor looking to extend its low-carbon alternative fuel offerings,” the executive said via email.

Hydra’s target market to date has been the roughly 5 million Class 8 trucks within North America, Verhagan said, with the company aiming to “conservatively” capture 1% of that market by 2030 through commercial discussions already underway. Hydra is also exploring expansion into the UK as well as Europe, Australia, and the Middle East.

“Hydra’s initial focus has been on proving out its Hydrogen-as-a-ServiceTM (HaaSTM) template which includes the company providing its proprietary hydrogen-diesel, co-combustion conversion kits to commercial fleets at zero cost (in exchange for long-term hydrogen fuel contracts at diesel equivalent prices) as well as an initial hydrogen refuelling station to service 65 Hydra- converted trucks in Prince George, B.C.,” she said.

Verhagan said the company will announce its first electrolysis partner for the Prince George hydrogen refueling station early next year. The station will be able to refuel – as quickly as diesel – up to 24 Hydra-converted trucks each hour across four bays. The station will provide hydrogen from two onsite, 5 MW electrolyzers powered with electricity from BC Hydro.

“The adoption of Hydra’s technology really comes down to availability of low carbon hydrogen – showing fleets it’s possible to go green cost-effectively – and government support to utilize hydrogen to reduce trucking emissions right now,” Verhagan said.

Read More »

Welcome Back

Get Started

Sign up for a free 15-day trial and get the latest clean fuels news in your inbox.