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1、Sustainable Aviation Fuels:Offtake ManualW H I T E P A P E RJ U N E 2 0 2 3Images:Getty Images 2023 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and

2、 retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum bu

3、t whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.ContentsExecutive summary 3Introduction 41 Key definitions 71.1 What are sustainable aviation fuels?71.2 How to account for SAF 101.3 What is a SAF offtak

4、e agreement?122 Considerations for airlines and other SAF buyers 142.1 Introduction 142.2 Environment and sustainability department 142.3 Fuel procurement 142.4 Finance 152.5 Maintenance,repair and overhaul 152.6 Government relations 152.7 Legal 152.8 Corporate communications 162.9 Executive committ

5、ee 163 Corporate buyer perspective 173.1 Introduction 173.2 Procuring and contracting SAF 183.3 Watchouts for SAF procurement 203.4 Risks involved in SAF scope 3 emissions reduction 234 Supplier perspective:SAF offtake template 254.1 Introduction 254.2 Potential changes to fossil templates 255 Polic

6、y examples:compliance 275.1 Introduction 275.2 CORSIA example 28Conclusion 29Appendices 30Contributors 31Endnotes 32Sustainable Aviation Fuels:Offtake Manual2Executive summary First Movers Coalition(FMC)aviation members have committed to adopting emissions reduction technologies,including sustainabl

7、e aviation fuels(SAF).It is estimated that SAF have the potential to contribute to 65%of aviation emissions reduction to achieve net zero by 2050.1 With the aim of accelerating decarbonization efforts in the lead-up to 2030,the FMC aviation community have produced this guide for purchasing SAF and S

8、AF certificates(SAFc).It highlights key considerations and resources for fuel producers,airlines and corporate buyers of SAF and serves as a manual illustrating how to procure SAF.The intended audience is non-procurement specialists or novice SAF buyers seeking insight into what SAF offtake discussi

9、ons entail.Making sense of SAFSAF offtake can be a complex venture.Although there is a lot of information available and relevant to SAF procurement and contracting,it is quite a fragmented knowledge landscape,and the process itself involves multiple players.The document contains a compilation of key

10、 resources and serves as a one-stop-shop for readers seeking information on SAF technology,SAF feedstock and sustainability,SAF economics and SAF policy and regulation.FMC aviation community members also feature practical experiences to call attention to gaps and address key questions.How to use thi

11、s documentFor suppliers,the report lends a better understanding of the fuel purchasers needs and also allows them to consider interests of corporate customers.For airlines,the report explains technical,feedstock,economic and policy related aspects of SAF to raise awareness and enable successful offt

12、ake agreements.Finally,for corporate buyers who have had varied experience in securing SAF scope 3 credits,the report shares best practices for procuring scope 3 credits by detailing key stakeholders,watchouts and accounting methods to make SAF offtakes more accessible especially for companies outsi

13、de of the aviation space.Ultimately,defining processes across the value chain and sharing best practice can contribute to decreased transaction costs and increased efficiency in securing SAF offtake.FMC aviations guide illuminates the path towards a 65%emissions reduction by 2050 via effective,strea

14、mlined sustainable aviation fuel procurement.Sustainable Aviation Fuels:Offtake Manual3IntroductionThe First Movers Coalition(FMC)is a group of companies that use their buying power to create strong demand signals for innovative green technologies in seven hard-to-abate sectors.These sectors account

15、 for 30%of worldwide emissions,and if substantial advancements in clean technology innovation are not made promptly,this percentage is projected to surpass 50%by the middle of the century.2 Details on each of the commitments can be found on the FMC webpage.Using demand signals to accelerate deep ind

16、ustry decarbonization.The FMC partners and enabling environmentFIGURE 1FMC support modelGovernment support for deep decarbonizationDevelopment of critical infrastructure Access to financing solutionsto catalyse supply developmentCollaborative communityof first moversAirlines and air transport compan

17、ies:“By 2030,we will replace at least 5%of our conventional jet fuel demand withsustainable aviation fuels(SAFs)that reduce life-cycle GHG emissions by 85%or more when compared with conventional jet fuel and/or zero-carbon emitting propulsion technologies.”Airfare and air freight purchasers:“By 2030

18、,we will partner with air transport operators to replace at least 5%of conventional jet fuel demand for our air transport with SAFs that reduce life cycle GHG emissions by 85%or more when compared with conventional jet fuel and/or zero-carbon emitting propulsion technologies.”Aviation commitmentThe

19、FMC has set ambitious commitments for airlines,airfare and air freight purchasers:Source:FMC;Boston Consulting Group Sustainable Aviation Fuels:Offtake Manual4The FMC partners with relevant initiatives,governments,financial institutions and other companies;and recognizes their actions to create an e

20、nabling environment.Although formulating purchase commitments and aggregating demand against them is core to the FMC,the coalitions activities go beyond this.Other activities focus on supporting members in delivering on their commitments and moving to bankable demand commitments.This SAF Offtake Man

21、ual is an example of the activities the programme offers to its aviation members.Using demand signals to create a bridge across the“valley of death”FIGURE 2First Movers CoalitionDemand signals from purchasing commitmentsResources available from governments and private sectorResearch and developmentD

22、emonstration and early deploymentDeployment and commercializationMaturity oftechnologyAdditional resources requiredResources“Valley of death”Source:Markham,S.K.,Moving technologies from lab to market,Industrial Research Institute,2002,p.32;FMC and BCG analysis.Sustainable aviation fuels essential ro

23、le in decarbonizing aviationSustainable aviation fuels(SAF)are derived from sustainable and renewable sources with low carbon footprints,such as used cooking oils,forestry residues and municipal solid waste.Efforts are under way to develop a pathway for producing synthetic SAF.When used as jet fuel,

24、SAF can reduce the carbon intensity of air travel by up to 100%(in fact,it can even go negative)over its entire life cycle,depending on the choice of feedstock and technological approach.SAF have some key characteristics that position them as the most viable technology in the near term for decarboni

25、zing the aviation sector,including:1.Immediate action:In line with the Intergovernmental Panel on Climate Changes(IPCC)findings,the period between now and 2030 is crucial for emission reduction if global warming is to be limited to below 1.5C.SAFs compatibility with existing aircraft and fuel infras

26、tructure eliminates the need for significant modifications to aircraft and airports,easing widespread adoption.2.Scalability:Given sustainable feedstock availability and adequate investment capital,SAF production has the potential to encompass 10%of total jet fuel sales by 2030.3.Integration within

27、the aviation value chain:Currently,SAF stands as the only viable decarbonization solution within the aviation Sustainable Aviation Fuels:Offtake Manual5industry.While hydrogen and electric flight technologies are expected to develop on a large scale in the coming decade,their suitability for long-ha

28、ul flights remains uncertain.4.Co-benefits:SAF production not only generates new high-quality green jobs but also introduces significantly lower levels of sulphur and particulate matter into the environment compared to fossil-based jet fuel.The SAF industry should use feedstocks to promote wider ado

29、ption,create employment opportunities and enhance energy security in many nations.However,a significant barrier to the rapid expansion of SAF is its current price,which is at least two times that of fossil jet fuel.Nonetheless,as economies of scale come into play,the cost of SAF is expected to decre

30、ase.Currently,the cost of feedstocks surpasses the price of finished fossil-based jet fuel.Unlike fossil fuels,feedstocks used in SAF production may require additional pre-processing before being refined.Moreover,higher transport costs,blending requirements with conventional jet fuel and fees associ

31、ated with additional safety testing and certification contribute to the premium cost of SAF.Sustainable Aviation Fuels:Offtake Manual6Key definitions1Critical insights to understand the path to a net-zero aviation sector.Sustainable aviation fuels are a safe replacement for conventional(fossil-based

32、)fuel that can reduce carbon emissions.It is almost chemically identical to traditional jet fuel and can be created using different combinations of technology and raw materials,some of which can absorb carbon dioxide(CO2).This process includes capturing CO2 from the atmosphere and utilizing renewabl

33、e electricity to produce SAF.Achieving a net reduction in CO2 emissions when compared to fossil fuels of between 60%and 100%is feasible.Today,SAF must be blended with conventional kerosene in ratios of up to 50%SAF to ensure compatibility with aircraft,engines and fuelling systems.The aviation indus

34、try is working towards understanding any modifications necessary for commercial aircraft to be certified as safe to fly with 100%SAF in the future.Further,sustainability is vital for assessing SAF and ensuring a thorough methodology for assessing emissions life cycle improvements and broader sustain

35、ability considerations.The economics of SAF remain one of the key challenges for faster adoption,and policy intervention is seen as important for building the global SAF market.These days,SAF is the widely used term,however,in some cases or older documents,terms such as biofuel,renewable aviation fu

36、el,renewable jet fuel,alternative fuel and biojet fuel may be used.These terms have similar intended meanings to SAF.SAF technologyThe technology for producing SAF has been actively worked on for more than 15 years.There are currently seven SAF production pathways approved by the American Society fo

37、r Testing and Materials(ASTM)International,with each pathway representing different processes for production depending on the type of feedstocks.A number of other pathways are also going through the rigorous assessment process for their viability for use in aviation.Each pathway has potential benefi

38、ts such as feedstock availability and cost,total carbon reduction or processing complexity and cost.Some SAF pathways may be more suitable than others in certain areas of the world,depending on feedstock availability and processing capabilities.All pathways,however,have the potential to enable the a

39、viation sector to reduce its carbon footprint significantly,assuming all sustainability criteria are met.SAF feedstockSustainable aviation fuel can be produced from a wide range of biogenic and non-biogenic feedstock.While the feedstock pool is diverse,strict criteria must be observed to be consider

40、ed sustainable.The aviation industry has been careful to promote only sustainably sourced alternative fuels,to avoid negative environmental impacts.Some of the feedstock used or expected to be used to produce SAF are listed in the following section.1.1 What are sustainable aviation fuels?Sustainabil

41、ity is vital for assessing SAF and ensuring a thorough methodology for assessing emissions life cycle improvements and broader sustainability considerations.Sustainable Aviation Fuels:Offtake Manual7SAF feedstock categoriesTABLE 1Conversion pathwayFeedstock categoriesFat-to-fuelWaste oils and fats:T

42、his typically comes from plant or animal fats and greases that have been used for cooking and are no longer usable for further cooking(used cooking oil),or as waste from food production(such as tallow).This is currently the most widely used feedstock for SAF production,but supply is not endless and

43、even though it will continue to play a role in SAF,other sources will grow to form a larger portion of the market.Cover crops or rotational oil seed crops such as camelina,carinata and pennycress that are grown in rotation with wheat and other cereal crops within the same year,when the land would ot

44、herwise be left fallow(unplanted)as part of the normal crop rotation programme.This provides growers with an opportunity to diversify their crop base and reduce monocropping(planting the same crop year after year),which has been shown to degrade soil and reduce yields and resistance to pests and dis

45、eases.With camelina,the leftover“meal”from the oil extraction can also be used as animal feed in small proportions.Carinata is a non-edible oilseed crop with similar promise.Waste-to-fuelMunicipal solid waste:Carbon-based waste that comes from households and businesses.Some examples include:product

46、packaging,grass clippings,furniture,clothing,bottles,food scraps and newspapers.There is great potential to use municipal solid waste as a sustainable feedstock,due to its vast supply.Rather than simply dumping municipal waste in a landfill site,where it will emit methane and other gases into the at

47、mosphere,it can be used to create jet fuel instead.Cellulosic waste:This comes from excess wood,agricultural waste(such as corn stalks),and forestry residues(branches and leaves that are not tradeable).These residues can be processed into synthetic fuel through proven chemical reactions(i.e.the Fisc

48、her-Tropsch pathway)or converted into renewable isobutanol or ethanol and,further,into jet fuel through the“alcohol-to-jet”(AtJ)pathway.Other pathways are also under development.Air-to-fuelNon-biogenic fuels:“power-to-liquid”(PtL)typically involves creating jet fuel from carbon sources such as indus

49、trial point source waste gases or,in the future,direct air captured carbon,combined with green hydrogen produced using renewable energy powered electrolysers.Alternatively,industrial waste gases can be converted into ethanol using biological conversion processes,and the ethanol subsequently converte

50、d into jet fuel.While direct PtL options are based on technically proven steps,the process is currently expensive and needs further technological and commercial development.Sun-to-fuelSolar jet fuel(or sun-to-fuel)uses highly concentrated sunlight to break up water and CO2 molecules.These processes

51、do not rely on waste resources or non-food crops,so there is theoretically an unlimited supply available,and this will likely make up a large proportion of SAF production in the future.Source:US Department of Energy,US Department of Transportation and US Department of Agriculture,SAF Grand Challenge

52、 Roadmap Flight Plan for Sustainable Aviation Fuel,2022.SAF economicsThe costs associated with producing SAF exceed those of conventional fossil jet fuel.Various economic frameworks exist for establishing a SAF production facility,including using diverse feedstocks and technology pathways and incorp

53、orating offtake structures or policy incentives.As a general guideline,the production cost of SAF is estimated between 1.5 times to 3 times that of conventional fossil jet fuel,depending on the maturity of the technology and feedstock logistics.ICAO has produced a SAF“rule of thumb”analysis,specific

54、ally generating results for estimated total capital investment(for pioneer and nth facility)and minimum selling price for the production facility to achieve the hurdle rate of return.3 What are the major challenges?The advancement and implementation of SAF face several challenges that restrict its p

55、rogress.These include the cost differential between SAF and traditional kerosene,the existing elevated production costs associated with SAF,the scarcity of cost-effective and sustainable feedstock for SAF and the inadequate infrastructure for feedstock production.Additionally,limited investment and

56、the high costs of financing the infrastructure for SAF fuel production pose obstacles.Moreover,competition for resources and incentives from other sectors like road transport and renewable power further complicates the development and deployment of SAF.There is also uncertainty on sustainability cri

57、teria and diverging views in different geographies(e.g.EU vs US).Uncertainty on advanced SAF technologies and first-mover dilemma everyone knows more technologies than hydroprocessedesters and fatty acids(HEFA)are needed.Still,investment into advanced technologies(especially power-to-liquid)is slow

58、due to the first-mover dilemma and uncertainty regarding the right sub-route.While SAFs production cost exceeds conventional fossil kerosene,feedstock and production infrastructure will struggle to attract debt and equity capital,and SAF risks not being prioritized.What can improve the economic viab

59、ility of SAF?Any new industry typically has untapped efficiency improvement potential.This is often called the learning curve or economies of scale opportunity.This is typically true for SAF,with improvements in production technology,lower-cost feedstocks and larger-scale production facilities being

60、 great opportunities to improve SAF economics.The largest potential to improve SAF economics is through policy support.Sustainable Aviation Fuels:Offtake Manual8Main key pathways to produce SAF,with unique challenges and potentialTABLE 2Source:FMC and BCG analysis.SAF policyThe purpose of a policy i

61、s typically to change behaviour or an outcome.In the case of SAF,production facilities are not being built because the risk of not achieving a return on the project is high.Some of these risks are whether there is a market for the SAF,how predictable the feedstock and construction costs are,the cost

62、 of capital or new technologies that might displace the long-run value of SAF.Long-term,stable policies are necessary to create a sustained market for SAF.The best policies for SAF development will likely vary for each state and region based on their unique climate,resources,political,social and eco

63、nomic factors.In the case of states with already well-developed renewable energy policies(e.g.for ground transport)or carbon legislation,there may be an opportunity to include SAF in those existing mechanisms.Any offtake agreement for SAF should carefully note the policy framework in the constructio

64、n jurisdiction and where the product may be used.Applying policy advocacy in the context of offtake discussion is often relevant to find the most optimal economic conditions for developing a SAF project.4HEFAAlcohol-to-jetGasification Fischer-Tropsch(FT)Power-to-liquidOpportunity DescriptionMature t

65、echnology:Safe,proven and scalable technologyTechnology in commercial pilot:Potential in mid-term,given higher greenhouse gas(GHG)reduction possible vs fossil jet fuel;however,significant techno-economical uncertaintyTechnology in development:Proof of concept 2025+,primarily where cheap high-volume

66、green electricity is availableFeedstockWaste and residue lipids,purposely grown oil energy plantsAgricultural and forestry residues,municipal solid waste,purposely grown cellulosic energy cropsCO2 and green electricity:unlimited potential via direct air captureCost driversPrice of feedstock accounts

67、 for majority of production cost and is market-driven,not likely to get cheaperCost of(green)hydrogen presents the biggest opportunity for HEFA production cost improvementRefining ethanol into jet fuel presents biggest cost bucketBoth steps(ethanol production and jet production)are capex-intensive w

68、ith decline potential in refining due to learning effectsGasification-FT production cost is largely driven by capital costThis process is highly flexible with regards to type of feedstock used,leading to wide projected range but high potential cost savingsMost uncertainty due to range of technologie

69、s and diverging cost of green electricity,as well as uncertainty on point-source carbon captureSynthetic fuels should enable significant cost reduction potential,driven mainly by lower-cost electrolysers and scale effectSustainable Aviation Fuels:Offtake Manual9Tracking the environmental benefits of

70、 SAF is important and must be considered before an offtake agreement.There are various established methods for doing this,but the four most common are:Identity preservation Physical segregation Mass balance Book and claim.Identity preservation is unrealistic for SAF at any scale.It is more suited to

71、 something boutique in the food industry,where one might like to know the exact paddock or piece of earth their food is from and everything about it.1.2 How to account for SAFSAF accounting approachesTABLE 3Physical segregation Mass balanceBook and claimDescription A physical segregation approach re

72、quires“separation”of different product streams(e.g.certified material from non-certified material)throughout the supply chain.This chain of custody approach delivers consignments that physically contain 100%of the specific product stream,but they can be from a variety of sources.It does not necessar

73、ily provide traceability back to the source of the feedstock(e.g.a specific farm or plantation)but could.Physical segregation can either be by location(e.g.separate storage or distribution channels)or by time(e.g.batch-wise processing or delivery)A mass balance approach allows products with differen

74、t characteristics to be physically mixed but kept administratively separate(think HEFA SAF from used cooking oil,where the oil has been collected from various restaurants).At each step in the supply chain,companies do not sell or produce more products with specified characteristics than they sourced

75、.Mass balance is required in the EU under REDII.5A book and claim approach enables the decoupling of the physical fuel from environmental attributes associated with the fuel.For the volume of SAF that is claimed to be used,it can be claimed that sufficient material with those characteristics has bee

76、n added to the system(considering relevant conversion factors).A more complex approach might involve applying value to scope 1 and 3 emissions,encouraging non-physical fuel users to participate in these transactions.Carbon Offsetting and Reduction Scheme for International Aviation(CORSIA)considerati

77、onsCORSIA recognizes eligible fuels.Mass balance is accepted under CORSIA with the“control point”being the blend location,typically the airport.CORSIA already includes some elements of book and claim chain of custody after SAF blending.Comparison Physical segregation is cost prohibitive due to green

78、 premium associated with SAF compounded by dual physical infrastructure.Mass balance means more control points compared to book and claim and more limited supply options for SAF producers resulting in some SAF(or feedstocks)being shipped around the world to demand geographies.Book and claim offers m

79、aximum flexibility for tracking the environmental benefits from SAF with an opportunity to accelerate uptake by injecting SAF into the aviation fuelling system at the most logical logistical locations(especially 2025-2035 while supply scales)in a manner suited to incorporate corporate demand.Sustain

80、able Aviation Fuels:Offtake Manual10Book and claim chain of custody modelFIGURE 3 SAF BCU*registrationNo claim SAF BCU*retirementSAF producerSAF supplierRegistryAirportJet fuel supplierAirportGHG/sustainability claim by airline(scope 1)and corporate end user(scope 3)SAF physicalFossil jetSAF book an

81、d claim transaction*Book and claim unit(BCU)1 million tonnes(MT)of neat,certified product i.e.1.25 SAF BCU 1.25 SAF MTSource:Roundtable on Sustainable Biomaterials,RSB Book&Claim Manual,2021.Sustainable Aviation Fuels:Offtake Manual11Potential global book and claim design conceptFIGURE 4Airport ASco

82、pe 1Scope 3 claim.Environmental claimSAF refineryFossil refineryScope 1Airport BCentralregistry data repository and transaction facilitation mechanismIdeally an airline can make a claim under the regulatory system of their choicePhysical fuel SAF and fossilGovernment$A SAF offtake agreement is an ag

83、reement between a supplier and a buyer to purchase a volume of SAF produced by a plant,either established or under construction.This agreement can take the form of a purchase agreement or a service contract.It should include several terms,but at the very least,it must cover:Record of the producer an

84、d the buyer Information on the airports where the product will be used Offtake production per year(SAF volume)provided Time horizon.It is not uncommon for major airlines to have offtake agreements with a range of different suppliers to make use of as many stakeholders as possible in the SAF producti

85、on industry.This helps to diversify risk while ensuring enough feedstock is available to suit their needs.ICAO maintains a comprehensive log of disclosed offtake agreements for SAF.This record includes details of the producer and the buyer,along with supplementary information regarding the airports

86、where the SAF will be used.When accessible,it also presents data on the annual offtake production.Figure 5 provides an overview of publicly disclosed offtake agreements involving global SAF producers and/or airlines.It is likely that the demand for SAF will only increase in the coming years,particul

87、arly as legislated SAF mandates in Europe enter into place.1.3 What is a SAF offtake agreement?Source:International Air Transport Association(IATA),2019Note:Once the fuel enters the airport it can be distributed to the wing via Joint User Hydrant Installation(JUHI),akin to a fuel farm book and claim

88、.Sustainable Aviation Fuels:Offtake Manual12SAF offtake agreements over the last decadeFIGURE 561116212631364111226220132014201520162017201820192020202120222023YearNumber of announced offtake agreements552342124*2023 ranks low because it only represents the first four months of the year.Source:“ICAO

89、 SAF Offtake Agreement Tracker”,ICAO,2023.Sustainable Aviation Fuels:Offtake Manual13Considerations for airlines and other SAF buyers2SAF have several unique characteristics that need to be considered by airlines during procurement.Entering into a discussion for the procurement of SAF can initially

90、seem straightforward.After all,airlines have deep experience buying conventional jet fuel while negotiating prices and logistics.However,SAF have several unique characteristics that need to be considered in an overall negotiation,and this will typically involve an expanded group of airline stakehold

91、ers relative to the traditional conventional fossil fuel procurement.When commencing research or preliminary discussion for a potential SAF offtake,it is valuable to include all the relevant stakeholders from the start.At a minimum,a basic level of the fundamentals of SAF is important and can be con

92、solidated into four major themes:SAF technology SAF feedstock and sustainability SAF economics SAF policy and regulation.This department should be involved from the start and will likely have identified the potential offtake opportunity.Specific expertise for understanding sustainability metrics and

93、 regulation will be essential.The sustainability expert should lead in assessing criteria such as the appropriateness of feedstock and what sustainability certification should apply.They will also be relevant for sustainability regulation and compliance.The sustainability expert will likely be the o

94、utward-facing expert to address why a particular offtake agreement was struck and how this contributes to the overall decarbonization strategy of the offtaker.This team will have the skills and experience for executing conventional fossil fuel offtake and logistics supply agreements.Some of the SAF

95、offtake considerations will be identical to a conventional fossil fuel offtake,and the fuel procurement experts will need to work closely with the sustainability experts throughout the offtake process.The fuel procurement experts will lead on traditional energy relationships,blending criteria and co

96、mpliance with technical fossil fuel specifications.Typically fuel procurement will negotiate fuel delivery terms,particularly where variable pricing applies to logistics.2.1 Introduction 2.2 Environment and sustainability department 2.3 Fuel procurementSustainable Aviation Fuels:Offtake Manual14Main

97、tenance,repair and overhaul(MRO)is often the overlooked department in a SAF offtake as they are typically not explicitly required for signing the agreement.However,it is likely that information about a pending agreement will be more widely shared before signing the agreement,which,if MRO has not bee

98、n adequately informed,can prompt questions including:Will this impact the maintenance cycle of the aircraft?Are there performance issues?Or,is this fuel safe?These are simple but important questions to address,and MRO leaders are important members to include in the offtake awareness from the start.I

99、ncreasingly,SAF use is being required or will be required in many jurisdictions.ReFuel EU is one example that will impact many aircraft operators from 2025.Further,SAF is included as an eligible method to reduce a compliance obligation under CORSIA.To date,many of these regulations have slight varia

100、tions regarding the eligibility of feedstock or thresholds for carbon intensity reduction or even accepted methodology for calculating the life cycle performance of the SAF.While government relations will not necessarily be involved in technical reporting and verification of SAF,they can play a valu

101、able role in policy-maker interactions and advocating for mutual recognition and harmonization of standards,reducing compliance complexity and inefficiency for aircraft operators.The airline legal experts will be essential in the SAF offtake process.Unlike a traditional fossil jet fuel offtake agree

102、ment,a SAF offtake can have significantly more negotiated variables such as feedstock conditions,sustainability conditions,volume and timeframe variables,compliance and regulatory conditions,and specific financial conditions,potentially including project equity and associated off-ramp clauses.The de

103、eper the subject matter understanding from the legal team,the faster the agreement will proceed.It is recommended that legal engage with the environment and sustainability experts early in the offtake process to build a basic SAF knowledge foundation.2.5 Maintenance,repair and overhaul2.6 Government

104、 relations2.7 LegalIncluding the airline finance team early in the potential offtake discussion is important as they will finance the transaction and want to understand potential supply or currency risks.Some airlines implement hedges to protect against fuel price volatility or exchange rate movemen

105、ts.West Texas Intermediate(WTI)or Brent crude is commonly used today as a proxy for jet fuel,and derivative or futures contracts can be structured to protect against large price movements in jet fuel.As SAF transactions become larger,treasury teams will likely seek to understand the price drivers of

106、 SAF and whether these can be hedged.Additionally,it is worth noting that the term of a SAF offtake agreement has the potential to be longer than that of a conventional fossil jet fuel offtake agreement.This aspect makes it an interesting consideration.2.4 Finance Sustainable Aviation Fuels:Offtake

107、Manual15When an airline procures its annual jet fuel needs as fossil fuel,it will not be accompanied by a press release.However,because SAF are so closely linked to the aviation industrys decarbonization strategy and because SAF are still relatively new and often involve less-known producers using n

108、ovel technology and feedstock,companies share this news via a press release.Furthermore,corporate communication will be the coordinating company voice for media enquiries or the inclusion of detail in annual reports or executive-level presentations.It is a major advantage if the corporate communicat

109、ion team has a foundational understanding of SAF,especially understanding sustainability and feedstock and how SAF align with the whole of the industry decarbonization strategy.2.8 Corporate communicationsIt can be easy to overlook the airline executive committee until the later stages of an offtake

110、 discussion,although with many airlines now having an executive-level chief sustainability officer and SAF generally being a core element of strategy,this is less likely but remains an important point.Particularly for an airline engaging in the first offtake discussion,it is vital to have senior man

111、agement support,especially the chief executive officer,chief financial officer,chief operations officer and chief sustainability officer.While the executive committee are unlikely to negotiate the fine print,they will be interested in some detail and a lot more than a conventional fossil fuel offtak

112、e.Helping the executive committee build foundational SAF knowledge early in the SAF offtake process will expedite the time to reach an agreement.2.9 Executive committeeSustainable Aviation Fuels:Offtake Manual16Corporate buyer perspective3Corporates looking to reduce their scope 3 emissions can demo

113、nstrate long-term durable demand for SAF and its environmental benefits.The involvement of the private sector is crucial in promoting the adoption of SAF.Corporate travellers represent businesses whose employees frequently engage in air travel using commercial airline-operated aircraft.As companies

114、seek ways to tackle scope 3 emissions within their supply chains,a growing number have demonstrated their willingness to contribute financially towards emissions reduction by using SAF.From offsetting to insettingIn contrast to offsetting,which focuses on emissions reduction or prevention through in

115、itiatives like tree planting or cleaner cooking methods,insetting offers a more direct approach to travellers.By purchasing SAF,travellers can directly contribute to eliminating emissions throughout the aviation life cycle.Using SAF in flights replaces conventional jet fuel,ensuring that carbon stor

116、ed in fossil fuels remains untouched underground.Furthermore,any CO2 generated during SAF combustion is absorbed during the production process itself.Insetting,as a result,directly supports the decarbonization of the aviation sector.7How to inset with SAF?A number of airlines provide passengers with

117、 the opportunity to buy SAF directly when making their bookings.Additionally,business jet users may be able to purchase SAF directly from their fuel supplier at select airports.Another avenue for SAF procurement is through specialized purchase platforms,where consumers can calculate their travel-rel

118、ated emissions and choose the percentage of emissions they wish to mitigate by purchasing SAF.These dedicated purchase sites offer a convenient means for individuals to actively participate in reducing their carbon footprint through SAF use.Best practices from FMC membersFirst Movers Coalition aviat

119、ion members have had varied experience in securing offtake for SAF generally and SAF85 in particular,a process which requires a clear understanding of production pathways,feedstock and life cycle analysis(LCA).Accelerating the uptake of SAF85 uptake is heavily dependent on streamlining member intera

120、ction with suppliers.Exchanging best practices from prior SAF purchases will help to decrease the associated transaction costs of securing new offtakes.In this section,best practices from FMC members have been sourced.3.1 IntroductionCompanies always ask how much SAF should I buy?And the answer,alwa

121、ys,must be what the climate science dictates.Convert carbon to gallons of SAF(1 million tonnes of CO2 equals 112 gallons of HEFA-based SAF)and replace approximately 50%of jet fuel with SAF by 2030 and 100%by 2050,depending on company-specific trajectories and science-based/net-zero targets.If SAF pr

122、ocurement at such high levels is not immediately feasible for your company,then start small and scale fast it is easier to build the business case based upon real-life experience.The ambitions set forth by Clean Skies for Tomorrow targeting 10%SAF by 2030 and First Movers Coalition targeting 5%of 85

123、+SAF by 2030 are great guideposts.There is no time like the present,to invest immediately,for high quantity and quality SAF to exist in future.Nora Lovell Marchant,Vice-President,Global Sustainability,American Express Global Business TravelSustainable Aviation Fuels:Offtake Manual17What is a scope 3

124、 credit for SAF?8By using scope 3 credits,companies can attain GHG emissions reductions for their air transport activities without taking ownership of the physical SAF or being responsible for its safety considerations and liabilities.This decoupling of the physical SAF from its environmental attrib

125、utes eliminates the need to manage administrative tasks,or bear transport costs related to delivering SAF from the production site to the airport aviation fuelling system.In essence,this approach allows firms to benefit from emissions reductions associated with SAF without the logistical and operati

126、onal burdens typically associated with its physical handling.These guidelines only apply to corporate travellers that make use of commercial airlines.In the case of companies with private aircraft,the methodology differs.This section provides recommendations and step-by-step instructions for corpora

127、tes willing to fly on SAF in exchange for scope 3 credits.How does a sustainable aviation fuel certificate(SAFc)scope 3 credit work?Example:Nestes corporate buying programmeBOX 1BOX 2 The fuel producer generates eligible SAF from sustainable feedstocks and is issued with a corresponding number of SA

128、Fc based on either a volumetric calculation or an emissions-based calculation.The producer can then sell the actual SAF produced and the virtual SAFc credit that was issued separately.The SAF buyer can claim the emissions reduction value of the sustainable fuel itself once consumed(scope 1),dependin

129、g on local regulations.The eventual buyer of the SAFc an air transport customer such as a corporate can retire the certificate and claim the related scope 3 emissions reduction.SAFc helps address the supply and demand deadlock that is limiting the growth of SAF,catalysing additional demand for SAF b

130、y generating new funding that can be used to cover this premium.Source:World Economic Forum,Sustainable Aviation Fuel Certificate(SAFc)Emissions Accounting and Reporting Guidelines,2022.Companies contract scope 3 credits with the fuel producer(Neste),pay the SAF premium,and then Neste will deliver i

131、ts SAF to partner airlines.While doing so,Neste provides visibility of impact to its customers through reporting and documentation.Source:Nestes corporate buying programme;Freed,Jamie,“Corporate travel propels boom in sustainable aviation fuel”,Reuters,8 December 2022,https:/ discussed in the previo

132、us section,the first step is distinguishing between what is being bought:the physical SAF or its environmental attribute through a scope 3 credit.The primary emphasis for most corporations will be on obtaining scope 3 credits for the environmental attributes of SAF,while the ownership of the physica

133、l fuel volume remains with the producers/suppliers and airlines.This preference arises from the recognition that involving organizations outside the aviation industry in the physical fuel supply chain is both impractical and burdensome.Therefore,corporations choose to focus on securing the environme

134、ntal benefits of SAF through scope 3 credits without assuming the complexities associated with managing the physical fuel supply.Corporate procurement of SAF is a complex process involving several players that range from high-level executives to legal departments.As such,an extensive internal alignm

135、ent is necessary for SAF investments,which can be time-consuming.3.2 Procuring and contracting SAFSustainable Aviation Fuels:Offtake Manual18Key stakeholders for corporate buyers of SAFTABLE 4Chief executive officer(and broader executive committee)Tone at the top mission is critical.If you dont have

136、 C-suite buy-in yet,then build the business case for your executives.Secure consensus among a small cohort of senior leaders before pitching to the chief executive officer.Chief sustainability officerSAF helps your company and the world achieve science-based and net-zero GHG emissions reduction targ

137、ets.Note that a chief sustainability officer would also have questions about biodiversity and community implications as well as sustainability criteria and food supply,for example.If you dont have this expertise,there are plenty of consultants and non-governmental organizations ready,willing and abl

138、e to help you,e.g.Sustainable Aviation Buyers Alliance(SABA).Involve at least one person from the reporting side of the company to ensure that proper emissions reduction accounting and disclosures occur(including audit trail).Chief financial officerSAF is a premium product that will require a signif

139、icant investment.One option to fund SAF is to implement an internal carbon pricing to create a self-sustaining budget and funding mechanism for SAF and other decarbonization solutions.Combine the premium price of SAF within your science-based/net-zero targets and carbon pricing to account and budget

140、 for reductions,offsets/insets and remaining removals.Procurement departmentSAF can be procured via airlines,fuel producers and service providers such as travel management companies or logistics service providers.A diversified portfolio can help mitigate procurement risk because SAF supply is scarce

141、 and projects can get delayed or cancelled.Depending on the volumes and LCA,SAF may not be available for 12 to 24 months further underscoring the importance of getting started as soon as possible on procurement and contracting due to limited supply and timing delays.Purchasing SAF does not necessari

142、ly require a formal bidding process as SAF can be immediately procured via your existing business partners.Commercial departmentsPerform a 360 review of your clients,investments and ventures,vendors and suppliers to identify parties already producing,supplying,financing or developing SAF and related

143、 technologies.Legal department SAF contracting is legally complicated.If it goes wrong in the first couple of instances,it may taint the whole market.It is worth taking the time to get it right.Engage the legal department from the very first moment.Travel department Your head of travel has probably

144、already sorted this,so be sure to engage them.Sustainable Aviation Fuels:Offtake Manual19Key considerations before purchasing SAF:BOX 3a.Not all SAF are the same:sustainability criteriab.Claiming emissions reduction is a multi-step processc.Emissions accounting and reportingd.Physical SAF are not av

145、ailable in all airports(yet)e.CO2 calculations varyf.The price may seem high(because it currently is)g.Stakeholder alignment3.3 Watchouts for SAF procurementa.Not all SAF are the same:sustainability criteriaSAF describes non-conventional(fossil-derived)aviation fuels produced from biological(plant o

146、r animal material)and non-biological sources(e.g.municipal waste or waste CO2).SAF are typically produced using a range of technological pathways and feedstocks.SAF are known as“drop-in”fuels because little to no change needs to be made to aircraft or infrastructure,and they can be blended with conv

147、entional jet fuel.To produce SAF,the industry needs to tap into a range of options,as no single sustainable feedstock will answer every need.Given the range of feedstocks,production methods and locations,the final emission reduction of a given batch of SAF may therefore differ.However,one of the ben

148、efits of purchasing SAF through a book and claim system is that all of this is considered.The volume of SAF purchased is adjusted to match the CO2 the flight generates.Consider getting third-party support to navigate complexity and improve transparency,given that this space is constantly evolving.b.

149、Claiming emissions reduction is a multi-step processMany travellers,especially corporate travellers and their organizations,will need to provide proof of CO2 reduction for mandatory or voluntary emissions reporting procedures.SAF certificates are the way to do that.Some SAF producers and airlines pr

150、ovide companies with the option of reducing air transport emissions through direct SAF credits purchase.A certificate of credit for the CO2 reduction should be available once the SAF order volume has been used.Corporates select and commit to paying for an annual SAF volume based on their targets.All

151、 delivery and emission claims are verified by an independent third-party auditor,with each member receiving an annual impact report.Purchasers should be aware that SAF supplies are limited,and as such,it may take several months for the SAF purchased to be delivered to an airport and used in an aircr

152、aft.It is,therefore,important that corporate travellers in particular check that the chosen supplier(airline or purchase platform)will:1.Issue a certificate2.Do so within a timeframe that meets corporate or personal reporting requirements.c.Emissions accounting and reportingCorporates should account

153、 for and report total business air travel emissions under scope 3 category 6,which should comprise LCA emissions of the associated airlines.The emissions calculation should be based on the consumption and life cycle emissions of conventional jet fuel.The data used in the calculation will be both act

154、ivity-based primary data as well as third-party-provided secondary data.Some sample calculations can be found in Appendix 1 of the Sustainable Aviation Fuel Certificate(SAFc)Emissions Accounting and Reporting Guidelines.Carbon accounting vs financial accountingSAF are accounted for upon consumption;

155、when the fuel is burned in an aircraft.Engage your audit and finance teams early and often to ascertain how your company plans to account for SAF on an annual basis with respect to consumption and expenditure on fiscal timelines.These analyses take time because carbon accounting and financial accoun

156、ting are not the same.Additionally,it is worth considering that SAF scope 3 reductions are not necessarily accounted Purchasers should be aware that SAF supplies are limited,and as such,it may take several months for the SAF purchased to be delivered to an airport and used in an aircraft.Sustainable

157、 Aviation Fuels:Offtake Manual20for when the SAF is burned you can carry the certificate to claim emissions reductions.In order to enable this,the development of standardized accounting and reporting guidelines is of utmost importance.This will facilitate the recognition and use of SAFs environmenta

158、l attributes while ensuring environmental integrity and preventing any potential adverse consequences.Incorporating SAF scope 3 credits into international GHG accounting standards such as the SBTi9 and Greenhouse Gas Protocol(GHGP)is important to accelerate the speed and scale of investment required

159、 to decarbonize the aviation sector and others.Ultimately,the expectation is that SAF scope 3 credits will become the go-to option for institutional air transport customers to address their air transport emissions,increasing the use of SAFs and driving down air transport emissions.d.Physical SAF are

160、 not available at all airports(yet)SAF are currently produced in a limited number of locations and not transported widely(doing so would increase its life cycle emissions).This means they are not available at all airports.As a result,the industry uses a book and claim system.This is similar to the c

161、ommon approach of purchasing“green”electricity.There are two impacts of purchasing via a book and claim scheme.1.While SAF may not be available for the travellers specific flight,the purchase puts the volume of SAF consumed into the global fuel supply.Therefore,this displaces the purchase of convent

162、ional fuel,reducing the volume of fossil fuels being burnt and the associated emissions.2.Any SAF purchased also helps strengthen demonstrable demand,ultimately leading to a systemic increase in the volumes of SAF produced.For further information on the purchase of SAF and how book and claim systems

163、 enable these kinds of purchases,refer to:World Economic Forum,Powering Sustainable Aviation Through Consumer Demand:The Clean Skies for Tomorrow Sustainable Aviation Fuel Certificate(SAFc)Framework,2021.World Economic Forum,Sustainable Aviation Fuel Certificate(SAFc)Emissions Accounting and Reporti

164、ng Guidelines,2022.e.CO2 calculations varyAirlines and purchase platforms typically estimate the CO2 emissions caused by the fossil fuel needed for a particular flight and bring the respective amount of SAF into airline operations to fully account for those emissions.However,the exact methods used t

165、o calculate CO2 and the volume of SAF to purchase for a given flight may differ across platforms or airlines based on the variables included in the calculations.Variables that may influence this include the type of SAF,fare class,routing and aircraft type to name a few.Be careful how much CO2 reduct

166、ion you claim SAF are currently produced in a limited number of locations and not transported widely(doing so would increase its life cycle emissions).Sustainable Aviation Fuels:Offtake Manual21Calculating scope 3 emissionsFIGURE 6Mass of fuel consumption allocated to organization by its aviation su

167、pplier(s)Emissions factor per fuel typeDepending on the type of fuel:1.Jet kerosene kgCO2/kg fuel*2.LCA SAF kgCO2/kg fuelHigher precisionCurrent considerations Data availability from suppliers Higher precision,but careful accounting required to avoid double claiming across scopes 1 and 3SUM per trav

168、el type(typically short,medium and long haul+economy,premium economy,business and first)of distance travelled(per employee)Emissions factor per travel typeEither:1.Primary carrier specified vehicle specific emissions factor(kgCO2e/vehicle-km*or passenger-km)2.Secondary emissions factor(e.g.ICAO)(kgC

169、O2e/vehicle-km or passenger-km)Absolute scope 3 emissions in kg/tonne of CO2Absolute scope 3 emissions in kg/tonne of CO2Absolute scope 3 emissions in kg/tonne of CO2Medium precisionFuel consumed(litres)Emissions factor(kgCO2e/litre)Depending on the type of fuel:1.Jet kerosene kgCO2/kg fuel 2.LCA SA

170、F kgCO2/kg fuelLower precisionCurrent considerations Low-to medium-precision for scope 3 emissions data as a result of actual fuel consumption not being considered Careful accounting required to avoid double claiming across scopes 1 and 3Source:World Economic Forum,Powering Sustainable Aviation Thro

171、ugh Consumer Demand:The Clean Skies for Tomorrow Sustainable Aviation Fuel Certificate(SAFc)Framework,2021.f.The price may seem high(because it currently is)As a nascent market entrant,SAF currently have a price premium of at least twice that of conventional jet fuel.However,as demand surges,concert

172、ed efforts are underway to develop novel technologies and establish new facilities aimed at enhancing production efficiency and expanding the availability of SAF.Budget is always an issue.Carbon pricing is recognized by the worlds leading economists as the best way to align profit motive with the im

173、perative to cut emissions and so unleash the power of markets to reallocate capital quickly and efficiently.Introduce a carbon price to create a budget to pay for SAF,which can be equally scaled to other decarbonization solutions.g.Stakeholder alignmentGrounding the SAF approach in a corporates purp

174、ose and strategy is highly important.Ultimately,with all uncertainties on accounting,quality and other standards,the key decision factor needs to be,“Is it the right thing to do for clients,the planet etc.?”more so than,“Can the impact be reflected in the footprint?”While it is necessary to invest i

175、n SAF,dont underestimate the time or politics be patient to build consensus and impatient to get the job done.*Kilograms of carbon dioxide per kilogram of fuel*kgCO2 equivalent per vehicle kilometreSustainable Aviation Fuels:Offtake Manual22Deloittes experience pioneering early SAF transactionsBOX 4

176、Deloitte purchased the right to claim scope 3 emissions reductions and avoided the emissions from over 15,000 metric tonnes of carbon dioxide.One challenge identified in the pilot was the lack of a standard for calculating emissions benefits something that could be useful for scope 3 SAF buyers.Futu

177、re SAFc guidance should provide a standard method for all airlines and customers on a well-to-wake basis.In addition to sustainability assurance,its critical to structure SAF transactions and their outcomes in a standardized way to enable this market to scale efficiently and credibly.Standardization

178、 and transparency of claims(and the data that underlie them)are important as they allow buyers to compare fuel attributes on an equivalent basis and send a clear signal for the highest integrity SAF through SAFc purchases.For instance,feedstock disclosure allows differentiated demand and favourable

179、pricing for the most sustainable options.This would let corporations interested in purchasing scope 3 emissions reductions,like Deloitte,credibly claim and disclose the sustainability attributes associated with their SAF certificate purchases.Source:Connell,Allison,Duncan Masland and Lisa Newman-Wis

180、e,Pioneering early SAF transactions:Takeaways and lessons learned,Deloitte,2021.a.Sustainability framework development Setting a robust framework to support high-integrity SAF by evaluating emissions over the entire life cycle of the fuel,establishing sustainability criteria,ensuring an emission red

181、uction impact and adopting a transparent accounting approach that prevents erroneous double counting.10 There is a need for added transparency and best practice difference in criteria of how sustainable the SAF is due to different choices in the upstream.b.Avoiding scope 1 and scope 3 erroneous doub

182、le counting To ensure the credibility of any climate solution,it is imperative to avoid the flawed practice of double counting emissions reductions.This occurs when multiple entities assert ownership over the same emissions reductions within the same scope.For instance,when an aircraft operator proc

183、ures SAF,the scope 3 benefits need to be distributed proportionally among all its customers.c.The use of SAF scope 3 credits presents a perceived risk of multiple claims to reductions in scope 3 emissions.For instance,erroneous double counting may transpire when an air transport customer reduces its

184、 scope 3 emissions through SAFc.In this scenario,the partnered aircraft operator benefits from the associated scope 1 emissions reduction enabled by SAFc.Consequently,the aircraft operators other customers who are not part of the SAF credits partnership might erroneously assume that they can assert

185、a portion of the scope 3 emissions reductions attributed to the SAF facilitated by SAFc.d.Tracking and registry development The implementation of a robust book and claim process,along with a registry system,is necessary to effectively scale,allocate and retire the entitlements associated with claimi

186、ng the environmental attributes of SAF.Such a system could help ensure the integrity of the process and safeguard the accurate tracking and management of SAFs environmental attributes.It is crucial to prioritize learning from other sectors and avoid duplicating their mistakes or complexities.In vari

187、ous sectors,multiple standards coexist,11 each maintaining its independent registry.However,this diversity of“standards”and“registries”has raised questions regarding effectiveness.Therefore,it is essential to draw lessons from these experiences and strive for a unified approach that ensures transpar

188、ency,reliability and credibility to mitigate these challenges.Currently,there is no centralized meta-registry for SAF certificate transactions,which creates challenges around transparent emissions reduction reporting and accounting which the industry is working to solve.The following are some exampl

189、es:Avelia is a blockchain-powered book and claim system powered by Shell Aviation and Accenture with support from Energy Web Foundation together with American Express Global Business Travel and used by airlines 3.4 Risks involved in SAF scope 3 emissions reductionSustainable Aviation Fuels:Offtake M

190、anual23Cathy Pacific,Alaska,Delta,Jet Blue,alongside corporate buyers.The SABA,RMI and Energy Web are building a digital SAFc registry.The SAFc Registry Rulebook outlines features of the registry system and provides details on application including“issuance,holding,transfer and retirement”of SAFc.RS

191、B Book&Claim Manuale.Price fluctuations and market volatility The SAF landscape is not yet a stable market as this is a relatively new innovation and prices are expected to fluctuate over time.However,demand aggregation and offtake contracts from corporate buyers through SAFc purchases will stimulat

192、e the market and incentivize suppliers to advance and accelerate SAF production,ultimately lowering the price premium.Sustainable Aviation Fuels:Offtake Manual24Supplier perspective:SAF offtake template4SAF offtake agreements are the best supply acceleration catalyser.In most cases,the seller of the

193、 fuel will typically be one of the following four parties:SAF producer Petroleum refinery Blender Airport fuel depot.In all cases,purchase agreements should list the agreed conditions for fuel specification,SAF tracking,sustainability certification and the assignment or ownership of any renewable en

194、ergy and carbon credits,including scope 3.Standard insurance is part of a fossil fuel offtake and should be the same as a SAF offtake and typically covers third-party liability and business-related risk.Some of the potential changes to the standard fossil fuel supply agreement(generally referred to

195、as the specimen agreement)could include the following:General terms and conditions Location agreements Safety,quality and operations terms and criteria Administrative arrangements Service agreementThe specimen agreement is a master agreement that establishes the overall framework of the agreement,in

196、cluding scope,parties,duration,pricing mechanism,point of delivery and insurance.In addition,it typically includes all annexes by reference.The advantage of this structure is that it allows for changes to the annexes without having to re-negotiate the entire agreement.This is particularly helpful wi

197、th respect to the location agreements as these are likely to be modified from year to year to reflect changes in the operation of the airline,such as contracted volumes and prices.Some of the changes that are expected to be incorporated into this type of agreement to include SAF are discussed below.

198、Potential changes to the specimen agreement:Changes in the specimen or master agreement could include the following:Scope:This section can serve to educate the nature of the inter-party dynamics,the projected timeframe,and the aggregate volumes of SAF to be negotiated,along with any overarching guid

199、ing principles that the parties wish to articulate.Prices and price adjustments mechanism:Typical price arrangements for conventional jet fuel include market prices and formula prices.Market prices are fixed for a period of time,while formula prices are based on a published market price index that v

200、aries periodically(e.g.daily,weekly or monthly).To the extent that the price for the SAF may be determined differently,4.1 Introduction 4.2 Potential changes to fossil templatesConventional jet fuel purchase agreements should structurally only need modest amendments to accommodate SAF,but the detail

201、 of these amendments will be important.Sustainable Aviation Fuels:Offtake Manual25those modifications could be incorporated here or directly into the location agreements.Point of delivery:This could be a good place to specify where delivery of the blended SAF would occur,for example,at the airport f

202、uel farm(e.g.into-storage)or at the wing of the aircraft(e.g.into-wing).The point of delivery may also be different at different airports;therefore,it could also be specified in each location agreement.A key consideration that is not currently contemplated in the aviation fuel supply model agreement

203、(AFSMA)is how and where blending will take place.12 In particular,it should be determined which party will be responsible for blending and for ensuring that the blend meets the ASTM D7566 specification.The blend ratio should also be indicated;in addition,the party responsible for procurement of the

204、conventional fuel component should be specified.Under certain circumstances,airlines may be better positioned to procure conventional fuel,given that they already purchase it from conventional providers at the airports they serve.The location for blending should also be considered.This decision,howe

205、ver,could depend on a number of factors that can vary from location to location.This is another item that can be incorporated into each location agreement.A main reason for an airline to procure the SAF is to receive environmental and other credits associated with the use of SAF.It should be noted t

206、hat SAF production can potentially generate credits to both the producer and the user of the fuel.Thus,the master agreement should specify how any credits associated with production and the consumption of the SAF will be allocated.In the case of credits accrued to the user of the SAF,the agreement s

207、hould specify the type of documentation(e.g.a certificate of sustainability)that the seller needs to provide to the user.Potential changes to the location agreement:The location agreements are a good place to reflect elements that depend on the particular circumstances at individual airports,such as

208、:Delivery point Quantity(also,whether the SAF will be delivered neat or blended)Price in addition,the location agreement can be modified to include other elements,such as:Party responsible for blending Party responsible for sourcing conventional fuel Blend ratio.Potential changes to safety,quality a

209、nd operations managementIn principle,safety,quality and operations management should not represent major change,as the blended fuel must still meet ASTM D1655 or Def Stan 91-91 and will not require any additional procedures.However,ensuring there is a document trail of the neat SAF certification und

210、er ASTM d7566 and the recertification under ASTM d1655 is advised.Airlines may need to spend additional time with suppliers,third-party service providers and stakeholders to ensure everyone is comfortable with handling and storing the blended SAF.Administrative changesInvoicing may be adjusted to re

211、flect the type of information that the airline would want to receive with respect to the purchase of SAF.This information could include:Volume and mass of SAF purchased Feedstock used for the production of the SAF Blend ratio Quality documentation such as a refinery certificate of quality(RCQ)or a c

212、ertificate of analysis(COA)demonstrating physical compliance with ASTM D7566(or equivalent such as Def Stan 91-91)shall be provided for each batch of SAF blend.The RCQ or COA should clearly indicate the SAF blend percentage in volume,as well as the density of the SAF component,to ensure proper track

213、ing.Documentation of any environmental or other credits associated with the purchase of the fuel,such as a certificate of sustainability(CoS).The CoS is generally required if an airline intends to claim credit for SAF use under various renewable energy incentive programmes(e.g.EU-ETS).A main reason

214、for an airline to procure the SAF is to receive environmental and other credits associated with the use of SAF.Sustainable Aviation Fuels:Offtake Manual26Policy examples:compliance5Long-term,stable policies are necessary to create a sustained market for SAF.Each policy that includes SAF(obligated or

215、 voluntary compliance)should be a trigger for review in advance of executing an offtake agreement.In particular,consideration should be given to the documentation trail expected to be necessary for compliance and this should be stipulated in the offtake agreement.Some 40 countries have a policy incl

216、uding SAF in place or under development.It is beyond the scope of this document to assess each example;however,CORSIA is relevant,given that it will potentially apply to all aircraft operators.The monitoring,reporting and verification methodology for CORSIA was developed by hundreds of international

217、 experts over several years and,while potentially not exhaustive,is a comprehensive guide for the type of considerations and document requirements expected to demonstrate compliance.5.1 IntroductionSustainable Aviation Fuels:Offtake Manual27Under the CORSIA scheme,aircraft operators must purchase an

218、d cancel“emissions units”to offset the growth in CO2 emissions covered by the scheme.The aim of the scheme is to address any annual increase in total CO2 emissions from international civil aviation above 85%of 2019 levels.An aircraft operator may reduce its offsetting requirements based on life cycl

219、e emissions saving from SAF,provided the SAF meets the defined sustainability criteria.As of 2023,there are 12 separate sustainability criteria,of which seven are mandatory and must be verified by an approved sustainability verification scheme,three can be assessed by national attestation,and two ar

220、e voluntary.It is essential to have appropriate documentation for the seven compulsory sustainability criteria.Detailed sustainability information can be found in the key reference documents.Additionally,fuel production verification data is necessary.The data references listed below from the Chicago

221、 Convention Annex 16-4 serve as a useful guide for the type of requirement to consider explicitly requesting in an offtake agreement.5.2 CORSIA exampleSAF supplementary information to the aeroplane operators emissions report to the stateFIGURE 7 Purchase date/producer identification/fuel production

222、information Type of fuel/feedstock/batch number/mass of batch/valid sustainability certification document Intermediate purchaser(details)/transport and shipping information/blending location Name and contact information of responsible blending party/date neat fuel was received by blender/mass of nea

223、t SAF Blend ratio of SAF and aviation fuel(AF)/supporting documentation demonstrating that batches of SAF were blended with AF Mass of neat sustainable aviation fuel claimedNeat SAFLogisticsFinishedSource:CORSIA,Annex 16 Environmental Protection Volume IV,2018.Information collection by the aircraft

224、operator from intermediariesFIGURE 8Aircraft operatorIntermediaryIntermediaryBlending informationLogistic information/blender/neat fuel/info/massSAF type(feedstock,conversion process,jet A1/aviation gas)Sustainability certificationBatch(number/mass)Production(who/when)SAF:aviation fuel ratio/mass cl

225、aimedSource:CORSIA,Annex 16 Environmental Protection Volume IV,2018.Sustainable Aviation Fuels:Offtake Manual28The concept of early market commitment applied to groundbreaking technologies within the challenging sectors of heavy industry and long-distance transport forms the core of the First Movers

226、 Coalitions approach.Remarkably,the coalition has generated an unprecedented demand signal,with the private sector pledging a remarkable$12 billion by 2030 to procure innovative green technologies.Moreover,the First Movers Coalition has gained substantial support from various government partners who

227、 not only endorse the coalitions endeavours but also strive to implement policy agendas that facilitate the expansion of transformative technologies championed by the First Movers Coalition.Navigating the climate crisis will require the largest capital deployment in history,driving at least a yearly

228、 investment of$3 trillion.While relevant progress can be made with existing and deployed technologies to reach net zero,the global cost curve of innovative green technologies must be brought down.This is particularly critical for the seven hard-to-abate sectors:aluminium,aviation,cement and concrete

229、,chemicals,shipping,steel,and trucking.Public-private partnerships,like the First Movers Coalition,enable companies to move together and make greater progress while reducing risk and cost.Companies should partner closely with other companies,governments and everyone across the value chain to acceler

230、ate the decarbonization journey.SAF is essential to aviations decarbonization pathway,and while a rapid scale-up is required to meet the net zero target,global progress needs speed and scale that can be achieved through offtakes.Through collaboration across its members,the First Movers Coalition is

231、working to accelerate the decarbonization of the sector,harnessing the purchasing power of its members to accelerate the deployment of high-quality SAF while bringing the global cost curve down.The First Movers Coalition is a compelling example of how aggregated demand for innovative green technolog

232、ies through demand commitments can achieve ripple effects at the global scale.Through the collaborative work within the First Movers Coalition,aviations more sustainable future is closer than before.ConclusionSustainable Aviation Fuels:Offtake Manual29AppendicesSAF technologyMission Possible Partner

233、ship,Making Net-Zero Aviation Possible,2022Air Transport Action Group(ATAG),Waypoint 2050,2021International Climate Fund(ICF),Fuelling Net Zero:How the aviation industry can deploy sufficient sustainable aviation fuel to meet climate ambitions,2021Frontiers in Energy Research,“Sustainable Aviation F

234、uels”,2022SAF feedstock and sustainabilityUS Department of Energy,“Alternative Fuels Data Centre”,2023International Civil Aviation Organization(ICAO),CORSIA Default Life Cycle Emissions Values for CORSIA Eligible Fuels,2022SAF economicsICAO,“SAF Rules of Thumb”,2023Renewable Fuel Standard Program Un

235、ited States,SAF Grand Challenge Roadmap Flight Plan for Sustainable Aviation Fuel,2022PwC,“The Real Cost of Green Aviation”,2022SAF policy and regulationAtlantic Council,Sustainable Aviation Fuel Policy in the United States:A Pragmatic Way Forward,2020Government of Canada,“What are the Clean Fuel Re

236、gulations?”,2023European Commission,“Fuel Quality”,2023European Commission,“Renewable Energy Directive”,2023ICAO,Guidance on Potential Policies and Coordinated Approaches for the Deployment of Sustainable Aviation Fuels,2022ICAO,Sustainable Aviation Fuels Guide,2018Clean Skies for Tomorrow,Joint Pol

237、icy Proposal to Accelerate the Deployment of Sustainable Aviation Fuels in Europe,2020Clean Skies for Tomorrow,Sustainable Aviation Fuel Policy Toolkit,2021International Air Transport Association(IATA),IATA Guidance Material for Sustainable Aviation Fuel Management,2015A1 Key documents Sustainable A

238、viation Fuels:Offtake Manual30ContributorsAcknowledgementsLead authors Laia Barbar Lead,Industry Decarbonization,Aviation,World Economic ForumRobert Boyd FMC Aviation Champion,Boeing Rosa Esi Ennison FMC Freight Decarbonization Specialist,World Economic ForumNancy Gillis Programme Head,First Movers

239、Coalition,World Economic ForumThe proposed SAF Offtake Manual is the result of an extensive review of leading practices from the First Movers Coalition members.The interpretations and suggestions herein were refined through stakeholder consultations facilitated by the First Movers Coalition for Avia

240、tion.We would like to express special gratitude to the below organizations and individuals for their contributions and support,this collaborative effort would not have been possible without their substantial contributions:American Express Business Travel,Bank of America,Boston Consulting Group(BCG),

241、Breakthrough Energy,Deloitte,Deutsche Post DHL Group,PwC,Rio Tinto,Salesforce,United AirlinesMariano Berkenwald Senior Associate,Aviation and Shipping,Breakthrough EnergyMaarten Dansen Senior Manager,PwCWineke Haagsma Chief Sustainability Officer,Partner,PwCJan-Marcus Lueckhof Senior Expert,Sustaina

242、ble Aviation,Deutsche Post Kristen Loria Manager,Internal Sustainability,Deloitte GlobalNora Lovell Marchant Vice-President,Sustainability,American Express Global Business TravelSandrine Maury Procurement Sustainability Manager,DeloitteTom Michels Director,Government Affairs,United Continental Holdi

243、ngsAndreas Muendel Senior Vice-President,Strategy and Operations Programs,Deutsche Post Lisa Newman-Wise Senior Manager,Internal Sustainability Leader,Deloitte USAntoine Poulallion Manager,Global Internal Climate Strategy,Boston Consulting Group(BCG)Rohini Sengupta Director,Sustainability and Decarb

244、onization,United AirlinesLisa Shpritz Environmental Operations Executive,Bank of AmericaKaren Swemmer Acting Manager,Travel and Expenses,Rio TintoBrian Sylvester Sustainability Manager,BCGHenrik von Storch Communications and Sustainability Strategy Team Lead,GoGreen,Deutsche Post Jamila Yamani Senio

245、r Manager,Climate and Nature Research,SalesforceProductionStudio MikoLaurence Denmark Creative DirectorMartha Howlett EditorOliver Turner DesignerSustainable Aviation Fuels:Offtake Manual31Endnotes1.“Developing Sustainable Aviation Fuel(SAF)”,International Air Transport Association(IATA),n.d.,https:

246、/www.iata.org/en/programs/environment/sustainable-aviation-fuels/.2.Alcorta,Andrew,Michel Frdeau,Patrick Herhold,Cornelius Pieper,Keshav Rastogi and Tina Zuzek-Arden,Harnessing Purchasing Power to Drive Decarbonization Through the First Movers Coalition,Boston Consulting Group,2023,https:/web- rules

247、 of thumb”,International Civil Aviation Organization(ICAO),n.d.,https:/www.icao.int/environmental-protection/Pages/SAF_RULESOFTHUMB.aspx.4.“Beginners Guide to Sustainable Aviation Fuel”,Air Transport Action Group(ATAG),4 April 2023,https:/aviationbenefits.org/downloads/beginners-guide-to-sustainable

248、-aviation-fuel/.5.“Directive(EU)2018/2018 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources(recast)”,European Commission,21 December 2018,https:/eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0082.01.

249、ENG&toc=OJ:L:2018:328:TOC.6.Smart Freight Centre(SFC)and Massachusetts Institute of Technologys Center for Transportation&Logistics(MIT CTL),Sustainable Aviation Fuel Greenhouse Gas Emission Accounting and Insetting Guidelines,2021,https:/www.flexmail.eu/f-1f3f332f2c34b17a.7.Smart Freight Centre and

250、 Deutsche Post DHL Group,Carbon Insets for the Logistics Sector,2020,https:/ is however worth noting that the GHGP is not yet clear on accounting,so risks should be considered.9.According to SBTi:“SAF may be used by consumers of aviation services to achieve science-based targets set against jet fuel

251、-related emissions.Use of SAF by consumers of aviation services could follow a book and claim approach if consistent with the GHGP accounting framework”.It is however worth noting that the GHGP is not yet clear on accounting,so risks should be considered.Engage an expert to help navigate the SBTi pr

252、ocess and build buffers of time because the backlog is months long.10.Piris-Cabezas,Pedro,“The High-Integrity Sustainable Aviation Fuels Handbook”,Environmental Defense Fund,2022,https:/www.edf.org/sites/default/files/2022-08/EDF%20HIGH-INTEGRITY%20SAF%20HANDBOOK.pdf;Sustainable Aviation Buyers Alli

253、ance(SABA),Sustainability Framework for Sustainable Aviation Fuel(SAF),2022,https:/www.flysaba.org/files/2022/12/SABA-SAF-Sustainability-Framework_12.9.22.pdf.11.For example,carbon offset projects have several standards like Verra,Gold Standard or Climate Action Reverse;and each of them operates its

254、 own registry.12.IATA,Aviation Fuel Supply Model Agreement,2017,https:/www.iata.org/contentassets/ebdba50e57194019930d72722413edd4/afsma-2017.docx.Sustainable Aviation Fuels:Offtake Manual32World Economic Forum9193 route de la CapiteCH-1223 Cologny/GenevaSwitzerland Tel.:+41(0)22 869 1212Fax:+41(0)2

255、2 786 2744contactweforum.orgwww.weforum.orgThe World Economic Forum,committed to improving the state of the world,is the International Organization for Public-Private Cooperation.The Forum engages the foremost political,business and other leaders of society to shape global,regional and industry agendas.