SBA Initiates Strategic RFP for Advancing Next-Generation SAF Supply

Sustainable Aviation Buyers Alliance Launches New SAF Procurement Initiative

In a significant move towards decarbonizing the aviation industry, the Sustainable Aviation Buyers Alliance (SABA) has announced the release of a Request for Proposal (RFP) aimed at boosting the supply of next-generation sustainable aviation fuel (SAF). This initiative, marking a pivotal step in the shift towards more sustainable flying practices, is seen as a means to accelerate investment in and production of innovative SAF technologies.

Understanding the RFP and Its Purpose

The newly issued RFP is designed to aggregate corporate demand in order to support the establishment of a next-generation SAF production facility. This facility is aimed at producing fuels made from advanced bio-based feedstocks and power-to-liquids technology. The RFP signifies an essential strategy to address the current challenges associated with traditional fuel supplies, potentially increasing the production capacity of SAF in the long term.

The aviation industry is under immense pressure to meet sustainability targets while addressing climate change. Currently, SAF represents less than 1% of total aviation fuel consumed, with most of it being derived from limited feedstock resources such as waste oils. SABA’s initiative targets the development of SAF that relies on scalable feedstocks such as renewable hydrogen and agricultural residues, which hold greater promise for substantial growth.

Corporate Collaboration for Emission Reduction

SABA includes more than 35 companies from diverse sectors such as finance, technology, and media, all of which are committed to reducing their aviation emissions through investments in sustainable aviation fuel. The coalition facilitates long-term purchasing commitments that could range from five to ten years, providing the necessary market signals to advance the development of innovative SAF production facilities.

Kim Carnahan, CEO of the Center for Green Market Activation and head of the SABA Secretariat, emphasized the urgency of boosting investment in SAF technologies now in order to meet decarbonization objectives and keep the aviation industry on path towards net-zero emissions by 2050.

The Book and Claim Model

SABA’s procurement strategy is innovative; it employs a book-and-claim model that allows corporate customers to purchase sustainable aviation fuel certificates (SAFc). This model enables companies to invest in SAF while gaining recognition for their emissions reduction efforts in climate disclosures, even if the purchased fuel is not directly used in their flights. This approach effectively links corporate investment to the physical deployment of sustainable aviation fuel.

Bryan Fisher, Managing Director at RMI, noted that such strategies can catalyze investment in scalable SAF production and aid the transition to renewable fuels. The integration of innovative procurement methods is crucial for bridging the gap between the aviation industry's sustainability goals and the necessary fuel production.

Aiming for the Future

Since its establishment in 2021, SABA has successfully facilitated approximately $200 million in SAF investments, contributing to the growth of the SAF market through previous procurement initiatives. The current RFP aims to secure long-term agreements to ensure production plants are operational by 2030.

Elizabeth Sturcken, Vice President at the Environmental Defense Fund, another SABA co-founder, expressed enthusiasm for this initiative. She stated that it presents a unique opportunity for forward-thinking corporations and fuel producers to work collaboratively towards achieving a net-zero aviation sector while maintaining environmental integrity.

SABA encourages SAF suppliers interested in this progressive RFP to access detailed information through their official channels, underscoring their ongoing commitment to fostering a robust, sustainable aviation fuel market.

As the industry grapples with its role in climate change, SABA's initiative is a beacon of hope that highlights the importance of collaboration and strategic investment in achieving a more sustainable future for aviation.