Potential for €2.55 billion Sustainable Aviation Fuel (SAF) Industry in Ireland by 2050

• SAF Industry could provide up to 1,000 high skilled jobs

• Policy changes needed to help accelerate pathway for SAF production

• Feasibility study by SkyNRG and SFS Ireland, supported by Avolon, Boeing, ORIX Aviation

Dublin, 25 October 2023: Ireland has the potential to develop a sustainable aviation fuel (SAF) industry generating revenue of €2.55 billion by 2050 and providing up to 1,000 high-skilled jobs. These are the findings of a feasibility study into the production of SAF in Ireland produced by SkyNRG and SFS Ireland, in a partnership supported by Avolon, Boeing and ORIX Aviation.

The study – Ireland’s Sustainable Aviation Fuel Opportunity – was launched today by the Minister for Enterprise, Trade and Employment, Simon Coveney TD, and looks at the key role SAF will play in helping the aviation industry achieve its net zero goal by 2050. IATA estimates that SAF, which can be used to replace traditional jet fuel, will deliver over 60% of the contribution needed to reduce aviation emissions to reach net zero by 2050. The European Union’s RefuelEU initiative obligates fuel suppliers to blend SAF into the fuel available at all EU airports, rising from 6% SAF by 2030, to 70% by 2050.

To meet EU mandated SAF volumes alone, Ireland will require approximately 10 SAF plants of 80 kilo tonnes production capacity each. This would create an Irish SAF sector generating revenue of €2.55 billion per annum and could provide up to 1,000 high-skilled jobs in direct and indirect employment. Further export opportunities could significantly increase these numbers.

The research finds that the biggest opportunity for Ireland lies in Power to Liquid (PtL) production of eSAF, a synthetic fuel produced by combining green hydrogen (extracted through electrolysis from water using renewable energy) with biogenic CO₂. SAF derived from bio-based intermediates like renewable natural gas has potential to scale up more rapidly to fulfill the advanced biofuels portion of the ReFuelEU mandate.

Significant progress is required for Ireland to be able to develop eSAF at scale, particularly to ensure there is enough excess renewable power available to produce hydrogen in the required quantities. The increased levels of offshore wind power generation that Government initiatives are targeting by 2030 will put the country in a stronger position to develop a domestic SAF industry.

Key policy initiatives the research recommends to be prioritised by the Government and other stakeholders include:

• Targets: Include sustainable aviation in climate action plans to strengthen Ireland’s position as a renewable fuel aviation hub.
• Incentivise: Incentivising mechanisms are crucial for a viable PtL business case to stimulate the development of both SAF and hydrogen: capital allowances, tax credits, guaranteed minimum pricing, investment incentives (e.g. via EII or SCI schemes).
• Research and Development: Funding and promotion of SAF technologies leveraging Ireland’s third-level institutions and Government entities such as Enterprise Ireland, Science Foundation Ireland and SEAI.
• Reforming planning process: Implement a comprehensive and systematic approach in the planning process for SAF production plants, taking into account the potential for future energy parks and circular economy development in Ireland.
• Storage and transport: Invest in hydrogen storage and transport, and solving the electricity congestion issues through more flexible use / development of the grid.
• Collaboration: Collaboration between public and private sector is critical to mobilise the required investment. Cross-departmental Government relationships are also essential (DECC, DOT, DAFM) to ensure comprehensive policy framework.

Minister for Enterprise, Trade and Employment, Simon Coveney, TD said: “The Government is committed to supporting EU and international action to reduce aviation emissions. The European Green Deal has set ambitious targets for reducing net emissions by at least 55 per cent by 2030, when compared to 1990 levels, and to be the first climate neutral continent by 2050. The agreement of the global long-term aspirational goal (LTAG) for international aviation at the International Civil Aviation Organisation (ICAO), which includes a collective global goal of net-zero carbon emissions by 2050 further demonstrates the level of ambition of States and Industry alike. We welcome the proactive approach from the aviation sector to progress its own net zero commitments. This research presented today shows that there are clear future economic benefits from the green economy, which can create new jobs and exciting new business ventures. We look forward to engaging further with industry to explore Ireland’s Sustainable Aviation Fuel (SAF) potential.”

Andy Cronin, CEO, Avolon, said: “Our support for this partnership reflects our ambition to be at the forefront of sustainable innovation that will reshape the future of aviation. Large-scale deployment of SAF and the transition of the global fleet to new technology aircraft are the two biggest near-term drivers that can progress the sector’s net zero by 2050 goal. It is going to require large levels of investment and close collaboration across many stakeholders, and we value the Minister’s engagement to explore Ireland’s sustainable aviation fuel opportunity.”

Sheila Remes, Vice President, Environmental Engagement and Business Development, Boeing, said: “Significant progress is required for Ireland to be able to develop eSAF at scale, particularly to ensure renewable power is available in the scale required production of hydrogen in the required quantities. The increased levels of offshore wind power generation that Government initiatives are targeting by 2030 will put the country in a much stronger position to develop a domestic SAF industry.”

Marie-Louise Kelly, CFO, ORIX Aviation, and Chair, Aircraft Leasing Ireland, said: “ORIX Aviation joined with its partners Avolon, Boeing, SkyNRG and SFS Ireland on this ambitious project because we want to be part of the innovations and as crucially, the collaborations, that will define aviation’s journey to Net Zero 2050. Along with our sectoral experience we were also able to add the wider ORIX Group’s extensive expertise in renewable power generation to this study. This report has identified multiple opportunities for Ireland on this journey. We welcome the Minister’s commitment to engage on SAF production and look forward to exploring ways to position Ireland at the heart of the global drive to Net Zero 2050.”

Darren Carty, Partner, SFS Ireland commented: “We welcome the Minister’s support and take pride in collaborating with industry leaders like SkyNRG, Avolon, Boeing, and ORIX Aviation as an SME. This feasibility study is the foundation for establishing a low-carbon SAF industry in Ireland. We look forward to advancing collaboration and essential public-private partnerships. SFS Ireland is firmly dedicated to spearheading the production of SAF in Ireland and actively participating in the overarching mission to reduce carbon emissions within the aviation industry.”

Philippe Lacamp, CEO, SkyNRG, said: “Ireland has an opportunity to combine its renewable resources, skilled workforce, and the right policy environment to create a thriving Sustainable Aviation Fuel (SAF) industry. SAF is essential for the aviation industry to achieve its net-zero target by 2050 and we need to build up SAF production capacity to cater to the rapidly rising demand. While there is still work to be done, we are convinced that Ireland can play a significant role in creating this SAF production capacity. We look forward to working with the Irish Government and other stakeholders to make SAF a reality for the important Irish aviation sector.”

ORIX Aviation are proud to congratulate our Airline Economics Forty Under 40 honouree for the Class of 2023, Head of Aircraft & Asset Management Origination Cian Coakley.

The Airline Economics Forty under 40 list for 2023 has been compiled from a record amount of nominations and endorsements, with well over 100 nominees drawn from across senior members of the broad aviation community.

Cian has been recognised for the second year in succession by ORIX customers who highlighted the value and support he has brought to relationships, particularly throughout the recent pandemic and ongoing recovery, which has brought unprecedented challenges to our sector.

In nominating Cian for inclusion in the Forty Under 40, his clients praised the strength of his relationship with customers; “There is no better legacy of the first generation of aircraft leasing executives than to know that the industry they built is – and will continue to be for decades to come – in the very good hands of extraordinarily knowledgeable, talented young executives like Cian, who are wise and experienced beyond their years, both in terms of their knowledge of the aviation industry and, even more importantly, in terms of their people skills,” shared one senior industry veteran.

A traditional element of the Airline Economics Forty under 40 sees recipients nominate mentors who have helped guide their careers in aviation. This year ORIX Aviation CEO James Meyler and Chief Commercial Officer Paul O’Dwyer have been recognised for the support they have given to Cian.

ORIX CEO James Meyler commented; “We are delighted to congratulate Cian on his selection to the prestigious Airline Economics Forty Under 40 Class of 2023 for the second year running. Cian is most deserving of this recognition, his selection is a testament to his unwavering dedication and professionalism towards to his customers and colleagues alike”.

You can read the full list of Airline Economics Forty Under 40 honourees and their citations below:

https://lnkd.in/dEnaqge

ORIX Aviation are delighted to announce that our Chief Financial Officer and ALI Chair, Marie-Louise Kelly was named Sustainability Leader 2023 at this year’s Aviation News Airline Economics Sustainability Awards.

The awards celebrate the advancement in aviation sustainability and Marie-Louise was recognised for her leadership in driving the decarbonisation agenda in the aircraft leasing sector through ALI initiatives such as the first-ever Global Aviation Sustainability Day and the launch of the ALI Sustainability Charter.

Accepting the award, Marie-Louise said, “The signing of the ALI Charter saw the Irish aviation leasing community come together as one, committing to ten ESG principles. ALI were proud to deliver this Charter, consulting with our members to ensure we could all support the drive for sustainability in our sector. So many people worked so hard to make the ALI Charter happen, particularly our ALI volunteer team, I was honoured to accept the award on their behalf.”

ORIX Aviation today announces the appointment of Dean N. Gerber as Advisor to the Board of Directors of ORIX Aviation. Primarily based in the US, Mr. Gerber will work with the senior management team at ORIX Aviation across a broad range of commercial activities. Mr. Gerber previously served as General Counsel to ORIX Aviation from 2019 to 2021. Prior to that, Mr. Gerber was the Chair of the Global Transportation Finance team at Vedder Price. He currently serves as Board President of the International Society for Transport Aircraft Trading (ISTAT).

Commenting on the announcement, James Meyler, Chief Executive Officer of ORIX Aviation said;
“We are delighted to welcome Dean Gerber back to ORIX Aviation as an advisor to our Board. I feel certain that Dean’s vast industry experience, along with his working knowledge of ORIX Aviation, will prove invaluable to our Board and senior management as we continue to grow the ORIX Aviation platform.”

Dean Gerber commented;
“I am thrilled to be re-joining my ORIX Aviation colleagues in this advisory capacity and look forward to working closely again with James and all the team in a wide array of commercial matters. The continued recovery across aviation has presented us with both challenges and as well as significant opportunities. As a leading global lessor, ORIX Aviation has an ambitious growth strategy and is well positioned for success in this market environment, and I am most eager to assist ORIX with these endeavours.”

ORIX Aviation announce that S&P Global Ratings have affirmed our Strong overall ranking on ORIX Aviation Systems Ltd as an aircraft servicer in Ireland, the ranking outlook is stable.

According to S&P Global’s report, the Strong Aircraft Servicer Ranking for ORIX Aviation reflected the company’s solid track record of lease management, its experienced leadership team and ORIX Aviation’s delivery of key metrics on credit risk management throughout the recent pandemic.

ORIX Aviation CEO James Meyler commented; “We are pleased that S&P Global have reaffirmed our Strong Ranking, the highest ranking available, accompanied by a Stable Outlook. Coming as it does almost three years since our last ratings report, this affirmation endorses many of the actions we have taken to meet the difficult challenges brought by the pandemic. As the demand for global air travel rebounds, I remain confident that ORIX Aviation is well placed to benefit from the sector’s recovery.”