In a groundbreaking move, the European Union (EU) is actively seeking opportunities in Africa to bolster clean jet fuel initiatives through its Global Gateway infrastructure fund. This strategic move aligns with the projected surge in demand for eco-friendly air travel solutions.
Underlining its commitment, the EU has earmarked half of its colossal 300 billion euro ($324 billion) infrastructure blueprint, intended as a counterpoint to China’s Belt and Road Initiative, for investment in Africa. Previous successes of the fund encompass renewable energy plants, green hydrogen initiatives, and crucial healthcare and education ventures across the continent.
Now, the EU is turning its attention towards sustainable aviation fuel (SAF) as the next frontier. Stefan De Keersmaecker, a spokesperson for the European Commission, confirmed that the Commission is exploring co-financing mechanisms and guarantee instruments within the context of the Global Gateway. This reflects the EU’s conviction in the substantial potential of SAF production within Africa.
SAFs, which offer low-carbon alternatives for aviation fuel, can be derived from diverse sources, including crops. The EU is poised to launch a 4 million euro initiative by December 31, aimed at supporting SAF feasibility studies and certification in 11 African nations as well as India. The Global Gateway could subsequently provide funding for selected projects post their feasibility assessments.
The aviation sector, contributing over 2% of global energy-related emissions, faces stringent emissions reduction mandates from the EU. This mandate is anticipated to generate a demand of 450 billion liters of SAF annually by 2050, as reported by the International Air Transport Association. Africa’s extensive underutilized agricultural expanses have gained newfound allure against this backdrop.
While Africa currently lacks SAF production, challenges lie ahead in establishing feedstock supply chains due to infrastructure deficiencies, refining capacity limitations, and regulatory gaps. Industry experts highlight the potential of local manufacturing to mitigate costs and ensure sustainable production.
Prominent companies such as Italy’s Eni, South Africa’s Sasol, Germany’s Linde, and Denmark’s Topsoe are undeterred, investing in African SAF and biofuel ventures. Environmental manager Frankline Omondi of the African Civil Aviation Commission envisions SAF production launching in at least two African countries within a few years, with strong potential for a third. South Africa, Kenya, and Ethiopia are frontrunners in this pursuit.
Photo Source: Google
August 28, 2023
Delino Gayweh
Serrari Financial Analyst
