Directional joins new SAF partnership powered by blockchain
Directional Aviation, Alder Fuels, 4Air and Flexjet have teamed up to launch a new type of next-generation Sustainable Aviation Fuel (SAF), backed by blockchain technology to prove its carbon-reducing credentials.
Private investment firm Directional Aviation revealed an undisclosed financial investment in SAF producer Alder Fuels yesterday (September 15). The investment will enable Alder to scale up production of the second-generation SAF and supply it to Flexjet and other private aviation operators.
Kenn Ricci, Principal, Directional Aviation said: “Our investment in Alder Fuels and partnership to advance the use of digital technology to document SAF use is an example of private aviation leading the way on sustainability commitments and identifying solutions to reduce carbon emissions that help the entire aviation industry.”
The new renewable fuel, Alder Fuels’ Alder Greencrude (AGC) SAF, uses sustainable biomass such as regenerative grass, forest residues and agricultural waste products instead of using fats, oils and greases.
According to Alder Fuels, AGC reduces greenhouse gas emissions by more than 80% compared to petroleum jet fuel and can be converted to SAF using existing bio and petroleum refinery infrastructure.
Shared ownership operator Flexjet will become its first business jet user and has committed to source 12% of its annual fuel consumption from SAF by 2030.
Flexjet CEO Michael Silvestro said that over the past two years, the company has achieved carbon-neutral flight operations through offsetting initiatives. “But we’ve wanted to take the next step, not just offsetting emissions, but actually reducing them directly in our operations by taking concrete steps today,” he said.
Flexjet will also pilot the blockchain transparency tool. “Using SAF produced with Alder’s pioneering Greencrude will help us achieve this goal, and the transparency tool developed by Alder Fuels and 4Air will serve as a real-world proof of concept,” Silvestro added.
4Air and Alder Fuels will collaborate on the deployment of the blockchain-powered tool to track the use of SAF from source to wing tank. It will provide transparency on the production of SAF and document compliance with regulatory programs, environmental, social and governance (ESG) targets and carbon reduction milestones for business aviation.
Kennedy Ricci, President, 4Air said: “The use of blockchain technology to transparently and permanently record the use of sustainable aviation fuel is an innovative application that will assist users with regulatory and voluntary compliance and provide greater transparency about SAF’s benefits as a way to reduce climate-changing carbon emissions from aviation.”
The need for industry-wide use of SAF has become increasingly clear. Earlier this year, the US government launched the ‘SAF Grand Challenge’ which set US SAF production targets of 3 billion gallons by 2030 and 35 billion gallons by 2050.
The recent inflation reduction law also supports this. The US government will provide a tax credit for each gallon of SAF produced that demonstrates a 50% or greater reduction in life cycle greenhouse gas emissions relative to petroleum jet fuel.
The process for AGC has been validated by the Department of Energy’s National Renewable Laboratory (NREL), and Alder claims the fuel has the potential to be carbon negative when using regenerative crops. The blockchain technology tool is designed to verify sustainability claims for the new fuel and to help users qualify for US government tax credits.
According to Alder Fuels, AGC SAF meets current aviation specifications and is in the process of being certified globally as a 100% drop-in replacement for petroleum-based jet fuel.
Bryan Sherbacow, CEO and President, Alder Fuels said: “As we make the transition from fossil fuels to sustainable energy throughout our economy, transparency is essential. That’s how we create trust and integrity to strengthen the adoption curve – and that’s exactly what we’re working towards.”
