Last week, Dutch energy corporation SkyNRG announced they will begin constructing a new biogas plant in Washington State. The refinery will produce sustainable aviation fuel (SAF), a critical factor in the industry's drive toward decarbonization.
The announcement came last week during a conference on aviation sustainability in Renton, Washington which featured investment groups, airline representatives, and government officials organized by Boeing. There, SkyNRG CEO Philippe Lacamp indicated that the plant would likely be operational by the end of the current decade.
SkyNRG's US division, based out of Bend, Oregon, had been looking to open a new plant somewhere in the Pacific Northwest. Ultimately, the firm found its ideal location after Washington Governor Jay Inslee signed new business-friendly legislation.
Another SAF event this year
This move comes on the heels of many other developments regarding sustainable aviation fuel. Recently, Finland's Neste, the world's leading producer of SAF, announced the expansion of its refinery near Changi Airport.
Demand for SAF, including a 100% increase in the amount purchased by the Washington-based airline manufacturing giant itself, has also skyrocketed this year. Airlines around the globe continue to demand more and more of the fuel in hopes of moving closer to net-zero flying.
Furthermore, carriers have continued to encourage customers to help support the push towards SAF, including a unique policy adopted by ITA Airways for its freight transport.
One challenge that remains, however, is the higher price of SAF, which has caused many airlines to delay a complete rollout of the fuel given the current economic conditions. Washington has attempted to combat this challenge, with the state legislature approving a $2 per gallon subsidy earlier this year in a bill sponsored by State Senate Majority Leader Andy Billing. In a statement regarding the opening of SkyNRG's new plant, Billing said:
This is what we hoped would happen. It’s rewarding to see this bill pay dividends for the state so quickly.
A substantial opportunity for the State of Washington
Despite serving as an obvious benefit for the aviation industry as a whole, the plant brings a variety of different benefits to both Washington and its residents.
For starters, the construction of the plant is set to bring 600 jobs to the area, with 100 permanent positions to be established once the plant is operational. Furthermore, the plant, which aims to produce 90,000 metric tons of SAF (around 30 million gallons), will bring between $600 and $800 million in investment to the area.
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Additionally, the recently passed SAF subsidy will make operating sustainable flights to Seattle even more affordable, which will likely encourage airlines to increase service to the state. And as air connectivity improves, further economic development should certainly follow.
Thus, Washington has positioned itself as the most supportive location in the United States both for SAF usage and production, allowing the state to lead the charge toward carbon-neutral flying.
Likely, more states will soon adopt similar measures to draw investment from airlines and energy firms, but until then Washington residents, more than others, will reap the economic benefits of supporting green aviation.
Source: The Seattle Times