Aviation will not decarbonise at the pace required unless Sustainable Aviation Fuel (SAF) projects can reach final investment decision (FID) far more rapidly, industry leaders warned during a recent Sustainable Aviation Futures webinar, hosted in partnership with technology company Johnson Matthey.

The session brought together voices from across the value chain: technology provider Johnson Matthey, airline group IAG, energy major Repsol, lender Santander, and insurer AXA.

The webinar host noted that while around 50 SAF plants are operational globally and roughly 40 more have secured financing, over 150 projects remain stuck in planning, with at least 50 abandoned or paused in recent years. “SAF is essential to decarbonise aviation, but getting projects from paper to FID is by no means guaranteed,” she said.

Defining FID readiness

For Paul Ticehurst of Johnson Matthey, being “FID ready” means a project is “fully defined” with clear capital and operating costs, timelines, production volumes, revenues and, crucially, a deep understanding of its risk portfolio. That includes off‑taker risk, feedstock risk, policy risk, construction risk, operational risk and technology risk. Early engagement with all stakeholders – investors, EPC contractors, insurers and off‑takers – is, he argued, essential to build confidence.

Sponsor strength, technology choice and regulation

From a developer’s perspective, Alfonso García of Repsol stressed that overall project risk hinges on three pillars: the sponsor’s financial strength and operating track record, the maturity and flexibility of the chosen technology, and the regulatory environment. In Europe, he described the policy framework as both “more material” and “more complex”, driven by multiple overlapping mandates. He underlined the importance of policy‑agnostic designs and product flexibility, allowing plants to switch output – for example, between SAF and renewable diesel – when market conditions shift.

Finance and insurance: putting risks on the right balance sheet

Urbano Pérez of Santander highlighted that most SAF plants to date have *not* been project‑financed, and that moving to true non‑recourse finance dramatically raises the bar for risk assessment. Lenders, he said, are “buying into the predictability of cash flows”, which in turn depends on robust off‑take agreements, secure and affordable feedstock, proven technology performance and disciplined construction.

Katie Lennon of AXA described SAF as a “relatively immature” industry that is unusually open about risk. She urged developers to bring insurers in “at the pre‑conception stage” so that technical risk consultants can help engineer out problems before construction. Insurance, she added, can absorb technology performance, credit, political and even weather risks – so long as the “right risk sits on the right balance sheet”.

Airlines’ long‑term role

Representing demand, Jonathan Counsell of IAG said SAF is “absolutely critical” to the group’s net‑zero plans, with up to 70% of its fuel potentially coming from SAF by 2050. IAG has already signed 10‑ to 14‑year off‑take agreements with power‑to‑liquid producers, but only after extensive due diligence on technology, pricing and policy exposure. Counsell backed SAF mandates in the EU and UK, but warned that sub‑targets – particularly for emerging e‑fuel technologies – must be realistic to avoid large‑scale buy‑outs that would signal “policy failure”.

Across the panel, one message was consistent: only early, coordinated engagement between developers, airlines, financiers, insurers, technology providers and policymakers will unlock the scale of investment needed to take SAF from niche to norm.

Electric mobility firm Ampere has signed a joint development agreement with Spanish battery technology company Basquevolt to accelerate the development of lithium metal-based batteries for future electric vehicles.

The collaboration will focus on advancing and validating a new generation of battery technology designed to improve energy density, charging performance and overall efficiency in electric cars. The project will be carried out in Spain and forms part of wider efforts to support innovation within Europe’s rapidly evolving electric mobility sector.

Basquevolt’s lithium metal-based batteries are based on polymer electrolyte technology, which differs from the liquid electrolyte systems used in most current lithium-ion batteries. According to the company, this design could significantly increase the amount of energy stored in each battery while also enabling lighter and more compact battery packs.

Industry specialists say such improvements are essential for the next generation of electric vehicles, where manufacturers are seeking longer driving ranges, faster charging times and improved thermal safety.

By combining Basquevolt’s advanced battery research with Ampere’s engineering and vehicle integration expertise, the two companies aim to accelerate the path towards commercial deployment of the technology in passenger vehicles.

Pablo Fernández, Chief Executive Officer of Basquevolt, said the agreement represents an important step in bringing polymer electrolyte battery technology closer to large-scale production. He noted that working with Ampere will help validate the performance of the batteries under real-world automotive conditions.

Nicolas Racquet, Vice President for Vehicle and Powertrain Engineering at Ampere, added that the partnership highlights the growing role of collaboration in the development of next-generation energy storage systems.

“Together we aim to accelerate the development of advanced EV batteries capable of meeting the evolving expectations of customers,” Racquet said.

The two companies have already worked together for more than a year to refine the technology. Early tests indicate that the batteries could achieve high energy density while also reducing the cost of battery packs compared with traditional lithium-ion solutions.

Basquevolt says its polymer electrolyte approach simplifies the battery cell manufacturing process, potentially lowering production costs and energy consumption at gigafactories. The company estimates that facilities producing the cells could require around 30% less capital investment per gigawatt-hour of capacity, while energy use per kilowatt-hour of battery output could fall by a similar margin.

If successfully commercialised, the technology could help manufacturers produce more efficient and affordable electric vehicles, supporting the broader transition to low-emission transport across global markets.

Energy storage has moved to the forefront of global innovation activity. (Image source: Adobe Stock)

Energy security is emerging as a leading driver of innovation, according to a new IEA report

More than 150 technology breakthroughs are identified in the IEA’s latest State of Energy Innovation report, which finds that the energy sector is increasingly becoming an innovation powerhouse, with around one in 10 patents worldwide relating to energy, underlining the sector’s central role in national security, industrial strategy and economic performance.

Innnovation highlights

Innovation highlights include solid-state air conditioning, perovskite solar cells, fusion energy, sodium-ion batteries and next-generation geothermal systems. These advances contributed to 50 upgrades in technology readiness levels among emerging energy technologies tracked by the IEA. Innovations mentioned in the MENA region include thyssenkrupp Uhde’s cutting-edge hydrogen recovery unit (HRU) at Fertiglobe’s Fertil plant in Ruwais, UAE, which enables advanced hydrogen recovery from the ammonia synthesis purge gas, allowing for increased feedstock utilisation and a 6% increase in ammonia output. Also highlighted is the partnership between ADNOC Gas, Baker Hughes, and Levidian to deploy Levidian’s patented LOOP technology at ADNOC’s Habshan Gas Processing Plant. This captures carbon from methane and turns it into graphene and hydrogen.

The report highlights the shift in policy towards energy security, ahead of affordability and emissions reduction, with new initiatives such as the US Genesis Mission and the EU Competitiveness Fund reflecting growing emphasis on strengthening domestic technological capabilities and securing critical supply chains.

However, markets for some clean energy technologies weakened, the report says. For example, project delays and cancellations reduced expectations for the deployment of low-emissions hydrogen this decade. The IEA’s renewables deployment forecast for 2030 was downgraded by 5% in 2025 in response to policy and regulatory changes. Several major first-of-a-kind energy technology projects under construction, in areas such as near-zero emissions steel and direct air capture, were hit with higher costs and policy uncertainty.

“Energy innovation has become a strategic priority for governments around the world,” said IEA executive director Fatih Birol. “With energy security and industrial competitiveness at the top of the agenda, countries that sustain investment in research, demonstration and early deployment will be best positioned to lead the next generation of energy technologies.”

Energy storage tops global innovation activity, with batteries accounting for 40% of all energy patenting in 2023. China, Korea, and Japan remain leading sources of lithium-ion battery patents, with China’s share rising sharply over the past decade. In solar innovation, patenting has shifted toward perovskite solar cells, which now account for over 70% of solar cell patents by material.

The report underscores the importance of public support for energy innovation, but notes a decline in public and corporate R&D in 2025 as well as a drop in venture capital investment in energy technology, with high interest rates, macroeconomic uncertainly and competition from artificial intelligence ventures impacting energy capital flows. In the corporate sector Aramco is highlighted as a major R&D spender, with annual average R&D spending of US$1,300mn from 2022-2024.

Nevertheless, new growth areas are emerging. Funding for fusion, nuclear fission, critical minerals, geothermal, carbon dioxide removal and low-emissions industry has grown significantly, offsetting much of the decline in electric mobility investment. The report also highlights regional approaches to energy innovation, with China for example continuing to expand its footprint across corporate R&D and patenting, particularly in energy storage and industrial efficiency.

With shifting policy priorities and financial cutbacks, the report stresses that sustained and well-targeted public support remains critical, highlighting the transformative benefits brought about by energy innovation. Successful energy innovations can have major economic and social outcomes, impacting industrial competitiveness, trade, environmental health, infrastructure investment and security, the report notes. Aligning energy innovation strategies with broader competitiveness and resilience goals will be essential, particularly where technologies can strengthen domestic supply chains or reduce strategic dependencies. Ensuring access to funding across all stages of development – especially as private capital becomes more selective – and reinforcing partnerships across research, industry and finance will be key to maintaining momentum.

In its recent white paper, The State of Global Sustainability Disclosures, Sprih Inc. analysed more than 200,000 reports from over 80,000 companies worldwide, creating one of the largest repositories of corporate sustainability data ever assembled. The findings show that sustainability reporting is no longer a fringe exercise.Yet comparability and consistency remain mainly out of reach for many businesses. 

According to Sprih, this is where artificial intelligence must move from being a reporting tool to becoming the backbone of ESG intelligence.

Increasing visibility

The white paper, powered by SustainSense, Sprih’s climate AI engine, reveals a paradox. Disclosure rates for Scope 1 and Scope 2 emissions are relatively mature across many regions and sectors and near-term targets are widely adopted. Energy consumption is commonly reported in aggregate.

Yet when we move beyond headline figures, fragmentation becomes obvious.

Scope 3 emissions, which are often the largest share of a company’s footprint, remain inconsistently disclosed. Water reuse and rainwater harvesting data are scarce and waste categorisation varies widely. Smaller firms, particularly those under US$100mn in revenue, lag significantly in both completeness and consistency.

The paper explains that without standardisation, sustainability disclosures risk becoming a patchwork of narratives rather than a coherent dataset. This makes investors struggle to benchmark risk, while regulators face uneven compliance landscapes. Moreover, procurement leaders lack visibility across supply chains and executives are left navigating strategy with incomplete maps.

But AI can help change this equation.

Teaching machines the language of sustainability

One of the most powerful insights from the white paper is methodological. SustainSense does not merely collect documents; it extracts, classifies, validates and normalises data across languages, formats and reporting frameworks. In other words, it teaches machines to understand sustainability.

This matters because ESG data is not structured by default. It sits inside PDFs, integrated annual reports, regulatory filings and standalone sustainability documents. Terminology can differ across jurisdictions and definitions evolve. Units can vary and even the placement of data within reports is inconsistent.

Agentic AI architectures, as described in the paper, create a structured layer on top of this chaos. They identify emissions figures, distinguish between location-based and market-based Scope 2 data, harmonise water metrics and align targets to recognised definitions such as near-term, long-term and net zero.

The result is not just a larger dataset, but a comparable one.

When thousands of disclosures are translated into a common analytical framework, patterns emerge. Europe’s leadership in comprehensive target-setting becomes quantifiable. Asia’s relative lag in Scope 3 transparency becomes measurable. The maturity gradient between large enterprises and SMEs becomes visible at scale.

According to Sprih, this is not anecdotal ESG, but rather "it is systemic ESG intelligence."

A strategic asset

For many companies, sustainability reporting continues to feel like a compliance obligation. But the white paper offers some hope. 

Executives can use AI-driven benchmarking to understand where their disclosure quality signals strength – or exposes weakness. Investors can assess governance resilience by examining not just target announcements, but the consistency of underlying metrics. Regulators can identify sectors where harmonisation efforts must intensify.

Crucially, AI can also surface blind spots. The analysis shows that while total energy consumption is widely reported, the breakdown between renewable and non-renewable energy is less consistent. Water withdrawal is commonly disclosed, but treatment and reuse metrics are rare. Waste generation is more visible than circularity performance.

These gaps, it seems, are not simply technical. They represent risk. In a climate-constrained world, incomplete value-chain data or poor resource visibility translates into financial exposure. AI could help transform ESG into static into dynamic risk management.

Better AI systems

Perhaps the most compelling idea in the white paper is the call for a global climate intelligence layer. If corporate disclosures are the raw material, AI is the infrastructure that makes them usable.

Imagine a landscape where investors can benchmark Scope 3 intensity across sectors in seconds; where procurement teams can map supplier emissions maturity; where policymakers can evaluate regional adoption of net-zero commitments with precision rather than estimates. Sprih says that this is not speculative, as it is already emerging. 

However, the technology community must recognise that scale alone is insufficient. AI systems must be transparent, auditable and continuously learning. They must adapt as reporting frameworks evolve and new regulatory requirements emerge. They must balance automation with validation to ensure trust.

Equally, companies must view AI not as a shortcut to green credentials, but as a tool for accountability. The question for the market is no longer whether AI will shape ESG. It is whether organisations are ready to operate in a world where sustainability performance is no longer hidden in footnotes, but illuminated by intelligence at scale.