Smartenergy, a Swiss-based renewable energy investment firm, has entered a sustainable aviation fuel (SAF) production partnership with state-owned Kuwaiti firm Q8 Aviation.
Under the agreement, Q8 Aviation will serve as a long-term offtake partner for Smartenergy’s planned production of electro-SAF (eSAF), receiving a “substantial share” of future eSAF output.
In a statement, the two companies said the partnership will help customers to comply with the SAF mandates of both the EU and UK.
Under the REFuelEU Aviation initiative, aviation fuel suppliers are expected to blend an increasing percentage of eSAF into their overall fuel supply at EU airports.
By 2030, the EU SAF mandate requires at least 1.2% of the total fuel mix must be eSAF, rising to 5% by 2035 and 35% by 2050.
The UK SAF mandate imposes a 2% target in 2025, rising to 10% in 2030 and 22% in 2040.
The partnership will initially focus on Smartenergy’s two flagship eSAF projects in Portugal, Project Galileu and Project Leca.
Both facilities are being developed to comply with the EU’s renewable fuels of non-biological origin (RFNBO) standards, as outlined under the bloc’s third renewable energy directive (REDIII).
Q8 Aviation, a subsidiary of Kuwait Petroleum International (KPI), said the partnership will build on its existing logistics and distribution network, which supplies fuel to over 70 airports worldwide.