Funding Source Public funding Industry funding Institutional funding Pathways (relevance of guideline by pathway, low = nice to have vs. high = must have) HEFA Alcohol-to-Jet G-FT Power-to-Liquid High High High High Lifecycle (relevance of guideline by pathway, low = rarely applicable vs. high = very common) Pre-feasibility Feasibility + FEED FID Construction Commissioning Low Low High High High Structure investment through a tolling model to attract more debtLever 9 To reach the required scale, SAF projects need to raise significant debt. To facilitate these investments, an emerging investment structure is through a tolling model. Under this model, a SAF facility would provide their refinery capacity to customers (tollers) in turn for a fixed tolling fee. The toller would supply the feedstocks and retain the risks and title to the molecules through the conversion process. The toller would be responsible for shipping and marketing the SAF produced with their feedstocks. A tolling model may mitigate market risk and provide stable, predictable cash flows as the SAF project would receive a fixed tolling fee without being exposed to fluctuations in feedstock costs and SAF prices. It is important to note that no tolling agreements have been concluded in the SAF space at the time of writing. The claims presented here are thus theoretical and based on the experience of the liquified natural gas (LNG) and electricity industries.From a lender’s perspective, this structure may be appealing. The reduced risk exposure would allow the SAF project to maximize debt financing and secure it at lower interest rates, as lenders would have more confidence in the project’s ability to generate steady cash flows, regardless of market conditions. This, in turn, would lower the overall cost of capital for the SAF project, improving its financial viability. Alternative risk-sharing pricing models could also be introduced, should investors have a higher appetite towards exposure to the low-carbon fuel. The tolling model would also enable a greater role for intermediaries in the value chain. Commodity traders are likely to take on this role as they could source the feedstocks, blend and sell the SAF, depending on the infrastructure they own. They could also leverage risk management tools to hedge their exposure to SAF. The latter option depends on the development of SAF into a liquid and tradable commodity akin to crude oil or LNG, a process which make take several years to come to fruition. A tolling model may mitigate market risk as the SAF project would receive a fixed tolling fee without being exposed to fluctuations in feedstock costs and SAF prices. Financing Sustainable Aviation Fuels 35 35 Financing Sustainable Aviation Fuels

Financing Sustainable Aviation Fuels 2025