Sustainable Aviation Fuel (SAF) will change the way we fly and theoretically can be produced locally in any country, including Ireland, reducing the impact of shipping fuel and contributing to energy independence. However there are many challenges such as certification of sustainability, feedstock availability, investment, and competing needs for fuel such as for road transport. Our Aviation team takes a look at these issues in our PDF below.
Aircraft Leasing Ireland (ALI) is the Ibec group representing the aircraft leasing industry in Ireland and has commissioned KPMG to produce a report outlining the opportunities for SAF production in Ireland.
Government engagement is key
It is critical for any country including Ireland to have Government engagement with a suitable policy framework and associated supports to facilitate and deliver SAF production. Manufacturing of SAF can dovetail with Irish and EU goals for independent, sustainable energy production.
Demand for SAF is growing exponentially and production is ramping up globally, especially in the USA with its comprehensive stimulus packages for SAF producers. The EU has set mandates for minimum SAF usage which ramps up over time, accelerating significantly from 2035 onwards.
Why Ireland?
With a long and innovative history in aviation, Ireland can help lead the way in the rollout of SAF in the EU and globally. ALI has a key influencing role to play and should in the first instance act as an advocate for the development of SAF in Ireland.
In the short-medium-term (1–5 years) ALI should play to its members strength to influence and educate, work with Government to help develop a framework for SAF production, partner with universities to fund research and development or support third-party investors (e.g. fuel suppliers embarking on their own refinery project). ALI could also support Ireland in creating the SAF certification/accreditation register.
Ireland has particular opportunities in the medium-long term from its huge offshore wind energy potential, which can be used not just for domestic energy use but also in development of green hydrogen and synfuel Power-to-Liquid (“PtL”) development. There are opportunities to export if sufficient volume can be produced, and to play a leading role in associated technological research and development. However, this would require substantial support and upscaling to be achieved.
It is likely that biofuel SAF can meet the needs of the 2020’s, and are predicted to make up 94% of SAF in 2030 as compared to 6% synfuels. PtL, however, is key to winning long term.
Get in touch
If you have any queries on the above report or the impacts on your business, please get in touch with Shane O'Reilly of our Sustainable Futures team. We'd be delighted to hear from you.
Shane O'Reilly
Managing Director, KPMG Sustainable Futures
KPMG in Ireland
Joe O'Mara
Partner, Head of Aviation Finance
KPMG in Ireland
Get our insights
KPMG Ireland’s dedicated decarbonisation & sustainability advisory team
KPMG Ireland’s dedicated decarbonisation & sustainability advisory team