Sustainable Aviation Fuel Facility in Houston, Texas

TX – One of the hottest topics in aviation is sustainable aviation fuel. It’s estimated that SAF will reduce greenhouse gas emissions by up to 80 percent. The endeavor to switch from fossil fuels in aviation to SAF is aided by the U.S. Department of Energy Bioenergy Technologies Office (BETO), which spearheads research advancements and the development of these biofuels. One of the companies hoping to expand the availability of aviation biofuels is World Energy, which is based in Boston, MA. They’ve recently applied for a 2 billion dollar loan from the federal government to help convert a Ship Channel plant into a SAF plant.

What is World Energy doing in Houston?

World Energy owns a biodiesel plant in Houston, TX, on the Ship Channel at what is considered mile zero for all the major United States pipelines. Their goal is to convert the biodiesel plant to a sustainable aviation fuel plant, and they expect that plant to be online and operational by 2027. World Energy expects the plant to be able to produce up to 250 million gallons of SAF along with some hydrogen fuel.

How did World Energy purchase the plant, and what type of federal loan are they applying for?

World Energy purchased the plant with the help of Biox Corp, a Canadian firm that specializes in renewable energy. Biox Corp is known for operating a 15 million gallon (60 million liters) biodiesel plant in Ontario.

Currently, World Energy is applying for a Title 17 clean energy loan for 2 billion dollars. The Department of Energy manages the Clean Energy Financing Program, which contains multiple stages. It is a form of guaranteed loan funding that contains two parts to the application process. After submitting Part 1, World Energy was invited to submit Part II of the application in March 2024. If they’re approved, they’ll be invited to start the due diligence and term sheet negotiations.

What is SAF, and why are companies looking to repurpose existing plants?

SAF is a biofuel, meaning it uses renewable sources and waste products. Biofuel can be manufactured from corn, oil seeds, algae, energy crops, and wood mill waste. It can also be made from agricultural and forestry residues and municipal solid waste streams. Existing plants are often the best choice when it comes to creating SAF plants. From an environmental perspective, it means that fewer new materials are needed to convert an existing plant than to build a new one. It’s often less expensive to convert an existing oil refinery into a biodiesel fuel plant.

What are the benefits of using an existing plant?

Existing plants have the infrastructure in place, and this is especially true of the Houston plant. The Houston plant already has access to the deep water infrastructure and distribution systems. The plant is also directly connected to two of the nearby international airports, which makes piping the SAF to the airports easier. The site also has all the tankage, racks, and connections needed to pipe and store the SAF. In other words, once the Houston plant is converted and online, getting the SAF to where it needs to go will be fairly easy.

What opportunities does SAF present to the environment and energy sectors?

It’s estimated that the energy sector is responsible for up to 73 percent of all the greenhouse gases produced across the Earth. Greenhouse gases are considered to be carbon dioxide, nitrous oxide, methane, ozone, and water vapor. Of course, when we talk about reducing the greenhouse gases produced by the energy sector, we’re primarily talking about reducing the CO2 emissions produced by burning fossil fuels. By switching from standard aviation fuels, like Jet A and 100LL, and using SAF, it’s estimated that CO2 can be reduced by as much as 80 percent in the short term. The better news is that most modern aircraft can burn 50/50 mixtures of SAF and traditional fuel without having to retrofit the aircraft’s fuel systems.

Currently, the production, distribution, and use of SAF are valued at 72 million dollars. However, by 2030, it’s projected to be a 6 billion dollar market. That’s a growth rate of slightly more than 56 percent per year for the next 10 years. With those estimates, it’s no wonder that World Energy, Biox Corp, and other energy companies are investing in the biofuel sector.