Financing Sustainable Aviation Fuels 2025

5. Carbon capture and storage (CCS): Given the large volumes of CO2 generated during gasification, integrating CCS technology is becoming increasingly important for achieving negative or near-zero lifecycle emissions. Implementing CCS requires additional capital investment in gas separation, compression and storage infrastructure. In some cases, the CO2 removed can be reused in other industrial processes, which could offset some operational costs. Power-to-Liquid The Power-to-Liquid (PtL) pathway, which produces fuels also known as e-fuels or eSAF, comes at a significantly higher CapEx compared to other SAF pathways. This is driven by the complexity and energy intensity of the process, which involves multiple steps to convert renewable electricity, water and CO2 into synthetic fuels. Significant innovation will be needed over the years for this pathway to become cost competitive with traditional jet fuel. The benefit however is that this pathway, unlike the bio-fuels alternatives, could be easily scaled-up. The main infrastructure components that drive CapEx for PtL are: 1. Electrolysers for hydrogen production from water electrolysis: These are powered by renewable electricity (e.g. solar or wind). These are currently expensive and require significant energy, resulting in the largest contributor to overall CapEx. 2. Renewable energy infrastructure: PtL facilities depend on renewable electricity for electrolysis and other processes. Some projects can use existing grids via power purchase agreements (PPAs), reducing upfront costs. Others may need to build onsite solar or wind farms, where feasible, increasing CapEx but improving long- term energy security. As electrolysers need continuous operations and renewable energy is intermittent, energy storage solutions, such as batteries, can further raise CapEx. 3. CO2 capture and conditioning: PtL pathways need a reliable CO2 source, which can come from industrial emissions, biomass or direct air capture (DAC). Industrial CO2 capture usually involves lower CapEx due to higher CO2 concentrations but requires proximity to emitters. In addition, there are regulatory limitations if CO2 is captured from industrial processes originated from burning fossil fuel. DAC offers location flexibility but involves significantly higher CapEx due to its energy-intensive process and advanced filtration systems. 4. Reverse water gas shift and Fischer-Tropsch (FT) synthesis: After hydrogen and CO2 are produced and captured, they are converted into syngas and further into hydrocarbons. Unless facilities can rely on existing capacity in close proximity, this will also contribute to overall CapEx . The PtL pathway comes at a significantly higher CapEx than other SAF pathways, but unlike the bio- fuels alternatives, it could be easily scaled-up. 12 Financing Sustainable Aviation Fuels