Key facts
- Nova Pangaea urges the UK to accelerate support for sustainable aviation fuel (SAF) producers.
- The company is developing a UK project to convert biomass residues into second-generation ethanol for SAF.
- Delays in policy, particularly the revenue certainty mechanism (RCM), risk pushing final investment decisions (FIDs) to 2027-28.
- Nova Pangaea's technology produces a biochar co-product, enabling carbon-negative SAF.
- The UK project is a reference plant, with larger global deployment opportunities anticipated.
The UK must accelerate its support for sustainable aviation fuel (SAF) producers to unlock crucial investment, meet its existing mandates, and bolster energy security, according to Jonathan Wood, Chief Commercial Officer at Nova Pangaea. The company is developing a project in the UK aimed at converting biomass residues into second-generation ethanol, which will then be used by LanzaJet to produce SAF for International Airlines Group (IAG).
Wood highlighted that, similar to many other UK SAF proposals, Nova Pangaea's Project Speedbird is experiencing delays, partly due to policy uncertainties. He emphasized that recent jet fuel price volatility reinforces the need for diversified energy supplies, with domestic SAF production being a key component. While acknowledging that feedstock availability varies by region, Wood asserted that the UK can increase its production capacity.
Regarding the supply chain, Nova Pangaea has secured agreements for domestic woody biomass residue, but also recognizes the need to source from agricultural residues and nearby regions like the Nordic countries. Wood stated that current UK policies are moving in the right direction, but stressed the critical need for supply-side mechanisms, such as the revenue certainty mechanism (RCM), to enable final investment decisions (FIDs).
He expressed concern that delays in the RCM legislation, expected by the end of 2026 with availability in early 2027, could slow down the most advanced projects. This could push FIDs to 2027-28 and operational start-up to around 2030, potentially jeopardizing the UK's ability to meet its 2027 HEFA cap. Wood noted that while advanced SAF imports from regions like the US and China are possible, local production is essential for a resilient portfolio.
Nova Pangaea's technology offers a unique advantage through its biochar co-product, which enables carbon-negative SAF with approximately double the greenhouse gas savings compared to typical HEFA SAF. The biochar has potential applications in soil enhancement, compost, concrete, and even lightweight materials. The UK project is intended to serve as a reference plant, demonstrating the technology's commercial-scale viability, with larger deployment opportunities envisioned globally in regions rich in biomass.