Energy

SAF can be seamlessly incorporated into existing jet engines and airport infrastructure. (Image source: Canva)

The International Air Transport Association (IATA) called on South Africa to mobilise its experience, resources, and infrastructure to accelerate the development of Sustainable Aviation Fuel (SAF) production. The call came as government and industry officials gathered in Johannesburg for the IATA Wings of Change Focus Africa conference.

“South Africa has vast potential to become a leading Sustainable Aviation Fuel (SAF) producer in the region. And there is a waiting market for SAF as airlines work to achieve net zero carbon emissions by 2050. More than a strategy in support of aviation’s decarbonisation, it is a strategy for economic development and should be a top priority for the new South African government. Across agriculture, energy, and transportation, new jobs and industries are waiting to be created that would not only help fight poverty but also contribute to greater energy independence,” said Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist.

Growth in Africa and across the world

South Africa chaired the 2022 ICAO Assembly at which governments agreed to a long-term goal aligned with the aviation industry’s net-zero carbon emissions by 2050 commitment. The role of SAF in achieving this goal was emphasised by the ICAO CAAF/3 objective of a 5% average global reduction in aviation’s carbon emissions by 2030. As decarbonising aviation will require global collaboration, it is critical that global or regional stakeholders like States, development banks, industry, academia and other relevant parties bring forces together to help countries with SAF potential to develop their industry.

“Airlines are ready and waiting to purchase SAF as evidenced by the fact that every drop of SAF produced has been purchased and used. But the production volumes are a minute fraction of what aviation needs. That’s why it is essential for governments of countries with production potential, such as South Africa, to embrace what is a unique win-win-win opportunity for economic development, energy transition, and decarbonised air transportation,” said Thomsen.

E-fuels can reduce greenhouse gas emissions in the energy and transportation sectors. (Image source: Adobe Stock)

Synergy Consulting discusses the advantages and challenges of e-fuels, and how a favourable environment can be created for their growth

E-fuels, or electro fuels, are synthetic fuels produced using electrolytic hydrogen. They are considered low-emission fuels when both their hydrogen and carbon inputs are derived using methods that result in minimal life-cycle greenhouse gas emissions. The production of e-fuels involves combining hydrogen with other elements to create different types of fuel products, each with specific applications and infrastructure requirements. Various different fuel types can be produced along this basic route.

Different fuel products can be further categorised by their ease of use. Drop-in e-fuels such as e-kerosene, e-diesel and e-gasoline are compatible with existing refuelling infrastructure and can be blended with limited constraints with petroleum-derived counterparts. By contrast, alternative e-fuels such as e-ammonia and e-methanol require investments in distribution infrastructure and end-use equipment to enable their use in the transport sector.

These types of fuels present yet another avenue in our quest towards a cleaner future by reducing greenhouse gas emissions in the energy and transportation sectors given that they utilise renewable electricity for their production. Drop-in e-fuels offer an easier transition due to their compatibility with existing infrastructure, whereas alternative e-fuels, despite their potential, require significant upfront investments.

E-fuels offer significant advantages in terms of reducing greenhouse gas emissions and utilising existing infrastructure, but they also face substantial challenges, particularly related to production costs, energy efficiency, and the need for substantial investments in new infrastructure. Balancing these factors is essential for the successful development and deployment of e-fuels.

• Reduction in greenhouse gas emissions: E-fuels can significantly lower life-cycle greenhouse gas emissions when produced using renewable energy sources and sustainable carbon capture methods
• Compatibility with existing infrastructure: e-fuels like e-diesel, e-gasoline, and e-kerosene can be used with existing refueling and distribution infrastructure, reducing the need for significant changes or new investments
• Energy storage and transport: can store energy from intermittent renewable sources (like wind and solar) in a stable, transportable form, addressing the challenge of renewable energy storage
• Energy security: By producing these fuels domestically, countries can reduce their dependence on imported fossil fuels, enhancing energy security

However, there still exist significant challenges in a greater adoption of such fuels. The current cost of producing e-fuels is relatively high compared to conventional fossil fuels due to the energy-intensive nature of the processes involved and the need for advanced technologies.

The overall energy efficiency of e-fuel production can be low, as significant energy is required for electrolysis and subsequent synthesis processes, leading to higher overall energy consumption.

In addition, alternative e-fuels such as e-ammonia and e-methanol require new investments in distribution and refuelling infrastructure, as well as modifications to end-use equipment, posing a financial challenge. Many technologies related to e-fuel production are still in the development or early commercialisation stages, requiring further research, development, and scaling up to become viable.

Given these challenges, accelerated deployment of e-fuels thus requires a comprehensive approach that includes policy support, infrastructure investment, cost reduction of key technologies, R&D promotion, and exploitation of synergies with other sustainable technologies.

Integrating e-fuels with biofuels and carbon capture utilisation and storage (CCUS) can lead to maximising benefits.

By addressing these areas, host countries and governments can create a favourable environment for the growth of the e-fuel industry, driving down costs and making e-fuels a viable alternative to conventional fossil fuels.

This article is authored by Synergy Consulting IFA

The partners will merge their respective gH2 projects in Egypt. (Image source: bp)

bp has entered a Joint Development Agreement (JDA) to join the existing consortium of Masdar, Hassan Allam Utilities, and Infinity Power to explore developing a multi-phase green hydrogen (gH2) project in Egypt.

As per the JDA, bp will serve as the main developer and operator of the project on behalf of the consortium. The partners will merge their respective gH2 projects in Egypt and consider the potential for a large-scale, multi-phase project focused on producing gH2 and its derivatives, primarily for export.

The newly established consortium has signed a Framework Agreement (FWA) with the Egyptian government to begin a series of studies and activities to assess the project's technical and commercial feasibility. 

Stakeholders weigh in

"We are pleased that the signing coincides with our celebration of 60 years in Egypt, which clearly reflects our ongoing commitment to the country. Over the decades, we have been a key supplier of energy in Egypt, consistently working to meet its increasing energy demands while supporting its endeavours for a more sustainable energy future. The diverse experiences of partners in energy projects present a great opportunity for regional cooperation and accessing global markets, fundamentally supporting Egypt's energy transition plans." said Nader Zaki, bp's regional president for the Middle East and North Africa.

Mohammad Abdelqader El Ramahi, Masdar’s chief green hydrogen officer, said, “We welcome the addition of bp to the consortium, building on the well-established existing relationship between our companies and supporting Masdar’s ambition to drive the development of green hydrogen around the world. We already have plans to develop green hydrogen projects in Egypt and this agreement reinforces Masdar and the UAE’s commitment to Egypt to realise its massive clean energy and green hydrogen potential, alongside our Africa renewable energy champion IPH.”

Amr Allam, co-CEO Hassan Allam Holding, said, "Joining forces with bp, Masdar, and Infinity Power in this consortium is a significant step towards advancing the development of green hydrogen and anchoring Egypt as a key player in this sector. Our combined local and global expertise will create economic opportunities and contribute to a cleaner and greener future for Egypt and help to decarbonize hard-to-abate sectors globally relying on fossil fuels.”

Felipe Arbelaez, bp’s SVP Hydrogen and CCS said, “Hydrogen has a role to play in the future of global energy. We look forward to working with our partners to try to unlock hydrogen’s potential in Egypt’s energy story.”

Mohamed Ismail Mansour, chairman of Infinity Power said, “Bringing another partner on board highlights the ambition of our consortium and our commitment to collaborating and innovating to bring about new green investment in Africa. Our track record delivering large scale projects in Egypt and across the continent will give us essential experience to help deliver on this exciting and innovative project.”

Nayer Fouad, CEO of Infinity Power said, “We know Africa has abundant renewable resources, and this hydrogen export hub will take advantage of these resources and bring environmental and economic benefits to Egypt and other nations. Hydrogen power is an incredibly exciting technology, and this export hub can help to power green industry in Africa and beyond and strengthen Egypt’s role as a leader in green power.”

This partnership aims to enhance sustainable development and advance climate action initiatives throughout the continent. (Image source: Adobe Stock)

The International Renewable Energy Agency (IRENA) has formed a significant partnership with Africa50, a leading pan-African infrastructure investment and asset management firm

As part of this agreement, Africa50 has committed up to US$100mn to support and co-finance renewable energy transition projects and infrastructure across Africa through IRENA’s Energy Transition Accelerator Financing (ETAF) platform. This partnership aims to enhance sustainable development and advance climate action initiatives throughout the continent.

The agreement was signed on the margins of the OPEC Fund Development Forum in Vienna by IRENA director-general, Francesco La Camera and Africa50 CEO, Alain Ebobissé.

"For the first time in a decade, the most recent data show that the number of people without access to electricity has increased significantly," said La Camera. "With Sub-Saharan Africa representing the majority of those impacted, we must be diligent and committed to urgently addressing this growing issue. Renewables represent the most effective, climate-safe solution available, and this partnership with Africa50 will be pivotal in strengthening the ETAF Platform’s impact across Africa."

Alain Ebobissé, CEO of Africa50 said, “The continent must focus on the dual goals of reducing emissions and accelerating economic development. Investing in and developing transformational renewable infrastructure is a critical step to achieving net-zero. The IRENA ETAF platform will be an important launchpad to scaling and accelerating our investments into renewable projects that will ultimately reduce the negative impact of climate change on our people and help build a more sustainable future”.

Established in 2021 with backing from the United Arab Emirates, the Energy Transition Accelerator Financing (ETAF) platform aims to scale up renewable energy projects that align with developing countries' Nationally Determined Contributions (NDCs). It seeks to enhance energy access and security for communities, promote economic growth, and foster diversification.

Africa50's recent involvement has expanded the ETAF Platform to include 14 partners, collectively pledging US$4.15bn. This growth underscores its status as a leading inclusive financing platform for transitioning to renewable energy. The partnership capitalises on IRENA's global membership to attract project proposals through the ETAF Platform and Africa50's expertise in project development and equity financing.

In September 2024, IRENA plans to co-host the Accelerated Partnership for Renewables in Africa (APRA) Investment Forum with the Kenyan government. This event aims to facilitate connections between project developers and potential financiers through a curated matchmaking program. It will showcase projects from APRA partners and other international organisations in support of APRA's development objectives.