Sustainable
Aviation Fuel
(SAF)
Study Session
April 27, 2021

1

What is Sustainable Aviation Fuel (SAF)?
Drop-in fuel made from sustainable
sources that can be blended with fossil
jet fuel
Produced from waste oils from a
biological origin, agriculture or forest
residues, municipal waste, etc.
SAF sustainability standards set by
International Civil Aviation
Organization (ICAO)
2

Volumes & Availability
Still only one production facility (World
Energy) in the US
More volume imported via Neste
Facility in Nevada nearing completion
Facility in Oregon under construction
Image courtesy: Fulcrum Bioenergy website                                                       Worldwide volumes ~ 5 million gal




3

Impact of California's Low Carbon Fuel Standard
Sustainable aviation fuel can generate credits under the LCFS
as of Jan 1, 2019
Credit value is $1.25-$1.50 per gallon
Since 2019, more SAF volume at LAX and SFO
Incentives remain higher for on-road fuels (e.g., renewable
diesel), so fuel producers focus on highest revenue-generating
fuels

4

Worldwide SAF production capacity forecast
oo
&
=  Worldnergy            NESTE #8EVO (muy Rodeo
g   Rrainout     Fulcrum       Singapore &   Lemme  (66)  ELLY
s               #1, Sierra
n  NESTE     7         Rottyam
ToTAaL
v       oRYo0                  "-                 Gohe
Delfzijl          Sunshine
9                                      New Orleans     Grardpuits
33                             5
SkyNRG
ate         oo               "
=  3%gevo      REDROCK                             Gothenburg
o      Silsbee
ae  Lanzajet>  Fulcrum   ~70
3   Demo quant's       6      Freedom Pines   #2,
a                               10           ary, IN
Lanzajet
5      TT                     >
energy                3 International
y        Mede                      Paramount      2 locations       locations
9       ;                       150          24          90
~59+M         ~72+M         ~746+M        ~830+M     ~990 - 1336 M       1B+
2020            2021            2022            2023            2024            2025    a.
* Not comprehensive; CAAFI estimates (based
on technology used & public reports) where production slates are not specified CAAF

30 September 2020                                                                              9


5

Strategic Plan
Review:
Progress toward
10% SAF Goal

6

Commission SAF Goal (Dec 2017)
By 2028, 10 percent of jet fuel available at Sea-Tac will be
produced locally from sustainable sources
Equivalent to 75 million gallons of "neat" SAF
By 2035, 25 percent
By 2050, 50 percent +

7

SAF Strategic Plan (2018)
Four Key Strategies
1.    Airline-Airport Cooperative Model (aka "the MOU Group")
2.    Support local, state, federal policy to incentivize SAF use
and in-state production
3.    Obtain FAA approval to use airport funds/grants for SAF cobenefits
or infrastructure
4.    Enhance awareness of, and support for SAF use

8

SAF Strategic Plan (2018)



9

Airline-Airport Cooperative Model - Update
Developed a SAF-emission-reduction
equivalent strategy with airlines
Evaluated ability to meet
local/regional fuel goal - WSU Study


10

GHG Reduction Goal

80,000                  (10% SAF for LTO)
73,000 MTCO,e
|
ERSESwES oe  essingOptions
70,000



60,000                                Reduce Emissions from Curbside
Passenger Drop-off and Pick-up Trips
16,000 MTCOe
(MTCO,e)  50,000                                        Bptimize Cargo Activity
3,100 MTCOze
Benefit
Reduction  40,000
GHG
30,000
Annual
[oT ORTEY
LameEL Tg
34,000 MTCOe



11

SAF Policy Update
Powerful advocate for passing LCFS in WA
Bill passed House and out of Senate Ways/Means
Committee [future unclear].
Continue to work with WA Commerce to
identify legislation that promotes SAF
production and use
New opportunities at federal level with
Biden Administration and focus on clean
energy infrastructure
12

Meeting the 10% SAF Goal
Requires near-parity or better than incentives offered in
California and on-road fuels
Airlines at SEA also operate in California and will favor CA prices if trying
to meet a SAF target
Requires dedicated production facility being brought online
quickly
Incentives to speed permitting
Incentives to bring down capital and operational costs

13

Developments Since 2018
Private business aviation interests
Corporate "SAFc" (corporate SAF-
seat on commercial jet) concept
European nations setting SAF
percentage targets

14