SAF One Energy secures up to $30 million to accelerate Middle East sustainable aviation fuel project

Dubai-based SAF One Energy Management has recently announced that it has secured, in stages, up to $30 million from the SAFFA Fund I to support the development of a sustainable aviation fuel (SAF) facility in the Middle East. The company mentioned that the fund has already invested $10 million into the project, and as construction progresses and SAF becomes available to airlines, the fund plans to increase its stake.

According to Greenair News, the project is expected to kick off site preparations later this year, with commercial production aiming to start by the end of 2028. Industry sources suggest that actual construction is set to begin in 2026. The timeline indicates that the plant could be operational roughly three years after construction officially starts, quite a rapid schedule in the grand scheme of such large-scale projects.

SAFFA Fund I is managed by Burnham Sterling Asset Management, which pulls together capital from a variety of investors in the aviation and finance sectors. Some of the notable co-investors include Airbus, Air France-KLM Group, BNP Paribas, CMA-CGM, Mitsubishi HC Capital, and Qantas Airways. Overall, the commitments from all eight partners amount to approximately $208 million, the fund disclosed. Michael Dickey Morgan, the Executive Managing Director of Burnham Sterling, commented positively on the partnership, emphasizing: “Scaling SAF globally needs cooperation across the board, and SAF One is a great partner that’s made impressive progress with its project in the Middle East.”

Additionally, SAF One revealed that it has selected two main partners for the technology and construction aspects of its first plant. Tata Projects Limited, an engineering, procurement, and construction (EPC) company from India and part of the Tata Group, will handle the EPC responsibilities and will orchestrate project integration, design, and readiness for construction. Tata Projects explained that their plan is to combine proven process technologies for feedstock pre-treatment and hydroprocessing, which will let the plant process waste oils and fats while meeting ASTM D7566 specifications for aviation fuels. “As the EPC partner, we’re committed to delivering an integrated, scalable project solution, utilizing standardized designs, cutting-edge construction methods, and modular strategies,” Tata Projects said.

Rajiv Menon, President & COO of Tata Projects’ Energy & Industrial Business division, added: “By working with standardized design concepts and modular construction techniques, along with disciplined project management, we want to accelerate the deployment of SAF projects around the globe.” SAF One also indicated that it’s in ongoing discussions with Tata Projects about a second SAF plant in India, as part of their broader international expansion plans.

For the actual conversion technology, SAF One will rely on Honeywell UOP’s Ecofining™ process, originally developed with Eni, that uses hydroprocessing to convert waste fats, oils, and greases into renewable diesel and SAF. Honeywell and SAF One highlighted that this process broadens the variety of feedstocks that can be used, offering operational flexibility as feedstock markets evolve. Rajesh Gattupalli, President of Honeywell UOP, explained: “Our Ecofining technology expands the range of feedstocks for SAF and allows producers to adapt to shifting market conditions and resource availability. By leveraging our experience and ongoing technological improvements, we’re aiming to make SAF production more economical.” Honeywell also pointed out that its technology has been used commercially for SAF since 2016.

SAF One sees this collaboration as a stepping stone for replicating similar projects elsewhere. Deepak Munganahalli, the co-founder and CEO, said: “Our mission is to deliver tailored solutions to those in aviation, understanding full well that customer adoption and support are crucial to scaling SAF production on a global level.” He further highlighted the strategic importance of their partners as well: “Their technical and commercial know-how supports SAF One’s ‘design once, build many’ approach across our pipeline of projects. This partnership not only boosts our platform but also helps us work with clients on scalable, long-term decarbonization efforts.”

The planned plant will produce HEFA-based SAF. This pathway involves hydroprocessing fatty feedstocks to produce paraffinic kerosene compatible with current jet engines and fuel infrastructure. Typical feedstocks include used cooking oils, fats, and greases. While HEFA is considered one of the most mature commercial SAF tech options, it faces challenges such as limited low-carbon feedstock supply and competing demands from other transportation sectors, which can restrict growth.

The investment from the SAFFA Fund comes as airlines are under increasing pressure to secure offtake agreements and ramp up SAF production to meet their climate goals. Industry groups have called for rapid expansion of SAF volumes to help the sector reach its long-term carbon reduction targets. That said, the economics of SAF continue to be sensitive, mostly dependent on feedstock prices, capital costs, and supportive policies. SAF One and its partners believe that using standardized modular designs and proven technologies will help reduce delivery risk and allow for quicker expansion across different regions.

Keeping an eye on this project will be many industry watchers. Key metrics will include the final site selection, offtake agreements with airlines or fuel buyers, the plant’s capacity, and the specific mix of feedstocks used. However, SAF One has not yet revealed where the plant will be located or its exact production capacity.

This initiative highlights the rising interest from investors in building fuel decarbonization infrastructure in the Middle East, a region better-known for its fossil fuels. If everything stays on schedule, SAF One’s plant could become one of the first commercial SAF facilities in the area. It might even serve as a model for export-style projects elsewhere, potentially in India, as the company looks to replicate this successful design and methodology in other markets.

Source: Noah Wire Services