Why are we doing this?
Society demands a shift towards sustainable production and reduced reliance on CO2 and other pollutant emitting processes. Sitting above this the United Nations have defined 17 Sustainable Development Goals (SDG) with target achievement by 2030. Transport fuels impact upon a number of these SDG's.
Governments have developed various frameworks to encourage/force the production of cleaner transport fuels. These set the economic and legislative structure that our project was designed to meet. Across Europe this is regulated through the Renewable Energy Directive (RED).
In the UK the focus is on delivering a Net Zero carbon economy by 2050. Reducing transport's emission impact is implemented through the government’s Road Transport Fuel Obligation (RTFO) scheme. This provides a legislated (cross-Party) mechanism to incentivise the UK fuel sector to decarbonise their fuels through provision of a certificate trading scheme based on biofuel supply to the market.
The RTFO legislates that an annually increasing percentage of advanced sustainable fuel is added to every litre of vehicle fuel sold. This is moderated through the provision of a certificate entitlement for every litre of qualifying fuel supplied. Under the system there will be market demand for 1.4 billion certificates by 2032 and beyond, which, at the buyout price per certificate equates to a £1.12bn UK market by 2032.
A separate "SAF Mandate" is currently being developed that will account for the impacts from the hard to decarbonise aviation sector and will be implemented in the UK by 2025. It will require the equivalent of at least 10% of jet fuel (around 1.5 billion litres) to be made from sustainable sources by 2030, with a ramp up to well in excess of 30% of jet fuel (>5 billion litres by 2050). This market will follow a similar certificate approach with a UK buyout price market of up to £3bn by 2030.
Sustineri intend to maximise the deployment of their process throughout mandated territories that support advanced sustainable fuel production to assist in decarbonising the local fuel supply whilst delivering excellent financial returns to our investors – a true win-win situation which meets both the tenets of “Sustainable Development” and the “Circular Economy”.