July 7, 2022
Avfuel to buy 1 billion gallons of sustainable fuel in Alder investment
Avfuel Corporation made a multimillion-dollar investment in Alder Fuels, described as a clean tech company pioneering first-of-its-kind technologies for producing sustainable aviation fuel (SAF) at scale. Avfuel is making the investment through its subsidiary, Avfuel Technology Initiatives Corporation (ATIC).
Alder Fuels converts abundant biomass, such as regenerative grasses and forest and agricultural residues, into sustainable, low-carbon crude oil that replaces fossil crude in existing refineries producing aviation fuel. Avfuel explains, that when calculating the fuel production carbon life cycle from field to wingtip, Alder’s technology has the ability to produce an ultra-low to negative carbon crude oil that, when refined, meets current jet fuel specifications. Alder’s biocrude refined into SAF is currently in the process of global certification as a 100 per cent drop-in replacement for petroleum-based jet fuel and anticipates the SAF will become available in the first quarter of 2024.
As part of the agreement, Avfuel will purchase 1 billion gallons of SAF over a 20-year period, and use the SAF to supply both business and commercial aviation globally. Avfuel’s purchase agreement is the first ever long-term offtake from a fuel supplier, explains the company, making this partnership the largest publicly-announced SAF agreement in business aviation history.
“Avfuel is committed to providing sustainable solutions for its customers, including business aviation, fixed based operators and airlines,” said C.R. Sincock, executive vice president of Avfuel.
“We have been a forerunner in supplying SAF to business aviation and this transformative agreement builds upon our commitment to lead its adoption,” said C.R. Sincock, executive vice president of Avfuel. “Avfuel is making investments via ATIC to ensure SAF is available and we are excited to partner with Alder in scaling the fuel globally.”
According to the U.S. Department of Energy (DOE), Avfuel explains U.S. forestry residues and agricultural residues alone could provide enough biomass energy to generate more than 17 billion gallons of jet fuel and displace 75 per cent of U.S. aviation fuel consumption.