Wednesday, July 3, 2024
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The International Air Transport Association (IATA) urged South Africa to leverage its expertise, resources, and infrastructure to expedite the production of Sustainable Aviation Fuel (SAF). The appeal was made during the IATA Wings of Change Focus Africa conference, where government and industry leaders convened in Johannesburg.
“South Africa has vast potential to become a leading Sustainable Aviation Fuel (SAF) producer in the region. And there is a waiting market for SAF as airlines work to achieve net zero carbon emissions by 2050. More than a strategy in support of aviation’s decarbonization, it is a strategy for economic development and should be a top priority for the new South African government. Across agriculture, energy, and transportation, new jobs and industries are waiting to be created that would not only help fight poverty but also contribute to greater energy independence,” said Marie Owens Thomsen, IATA’s Senior Vice President for Sustainability and Chief Economist.
South Africa led the 2022 ICAO Assembly where governments endorsed a long-term objective aligned with the aviation industry’s commitment to achieve net-zero carbon emissions by 2050. The role of Sustainable Aviation Fuel (SAF) in reaching this target was underscored by the ICAO CAAF/3 goal of achieving a 5% average global reduction in aviation carbon emissions by 2030. Given the global effort needed to decarbonize aviation, it is crucial for international and regional stakeholders such as governments, development banks, industry, academia, and other relevant parties to collaborate in assisting countries with potential for SAF development in scaling their industries.
“Airlines are ready and waiting to purchase SAF as evidenced by the fact that every drop of SAF produced has been purchased and used. But the production volumes are a minute fraction of what aviation needs. That’s why it is essential for governments of countries with production potential, such as South Africa, to embrace what is a unique win-win-win opportunity for economic development, energy transition, and decarbonized air transportation,” said Thomsen.
IATA underscored several advantages for South Africa in advancing SAF production, which were also highlighted in a study conducted by the World Wildlife Fund (WWF):
Abundant Feedstock Potential: South Africa boasts plentiful feedstocks suitable for SAF production, including low-carbon by-products from sugarcane and biomass from cleared invasive alien plants (IAPs). Harvesting IAPs can yield additional environmental benefits such as enhanced biodiversity and water security. Importantly, these feedstocks do not compete with food production, aligning with the sustainability framework of ICAO.
Significant Production Capacity: According to WWF estimates, South Africa has the potential to annually produce between 3.2 and 4.5 billion liters of SAF. This capacity exceeds domestic fuel demand (1.8 billion liters) and offers export opportunities, contingent upon supportive policies. Realizing higher production levels would necessitate developing capabilities in green hydrogen co-development.
Existing Refinery Infrastructure: South Africa benefits from established refinery infrastructure suitable for brownfield investments, such as plant conversions or co-processing ventures.
Rich Experience: With a longstanding history in synthetic fuel production, particularly through the Fischer-Tropsch method, South Africa possesses robust academic and research institutions that support fuel production innovations and technologies. Policies facilitating their involvement in SAF deployment are crucial at this juncture.
Strategic Geographic Location: South Africa’s airports, notably OR Tambo International Airport in Johannesburg and Cape Town International Airport, serve as pivotal hubs connecting flights across Africa and globally.
To harness South Africa’s SAF potential, IATA recommends that the government adopt a strategic plan focusing on these four critical areas:
- Industrial Infrastructure: Expediting SAF production by leveraging existing industrial infrastructure (brownfield investment) to gain a competitive edge in scaling production capabilities.
- Collaborative Resource Utilization: Foster SAF development through collaborative efforts among government, private sector, and international partners, pooling resources and expertise.
- R&D Incentives: Stimulate innovation to reduce costs, increase production volumes, and diversify production methods and feedstocks through tax incentives, grants, and subsidies aimed at SAF technology research and development.
- Infrastructure Investment: Support the establishment of essential infrastructure (greenfield projects), including biorefineries and green hydrogen production facilities, with incentives such as tax breaks and other financial supports.