The project lifecycle and funding needs of a SAF refinery2 Financing for a SAF refinery faces a range of policy, market, technology and feedstock risks. This mix of high risks and long payback periods makes for a challenging combination. 2.1 Overview of the SAF project lifecycle To fully operationalize a SAF refinery, an operator must navigate through five critical phases (see Figure 7): 1. Conceptualization and pre-feasibility, during which an initial SAF plant idea is explored and a conceptual design completed. 2. Feasibility and front-end engineering and design (FEED), to complete technical project specifications and evaluate the likelihood of project success from a techno- economic perspective. 3. Project financing and final investment decision (FID), when budgets, costs and returns are scrutinized to decide whether to progress to construction. 4. Construction and implementation, during which a SAF facility is built. 5. Commissioning and operation, during which all SAF plant components are installed and tested according to requirements, and fuel production is gradually ramped up to nameplate capacity. The journey from conceptualization to final investment decision typically spans two-and- a-half to five years. Following this, it generally takes an additional two to three years to reach the commissioning stage, with another couple of years required to achieve full-scale operations. As of August 2024, there were 90 refineries, both greenfield and retrofitted, that had produced at least one batch of SAF. In addition, around 60 refineries had passed FID and were under construction. More than 200 additional refineries have been announced and find themselves between conceptualization and preparing for the FID. The funding requirements associated with each project development phase vary. Conceptualization does not often require significant funding. The first significant capital expenditure that a SAF refinery needs is usually for the front-end engineering and design. FEED is a major undertaking as it results in detailed documents needed for creating the engineering, procurement and construction (EPC) contracts, and the costs depend significantly on the complexity of the technology. Once that has passed, fees are limited to legal and advisory fees to help inform and pass the investment decision. This investment decision is the moment where the multi-million or billion dollar investment, depending on capacity and technology, is confirmed. The journey from conceptualization to final investment decision typically spans two-and-a- half to five years. 14 Financing Sustainable Aviation Fuels

Financing Sustainable Aviation Fuels 2025