LATAM Airlines Colombia and Bio-D, a leading company in the search for sustainable energy solutions in Colombia, have formed a partnership to advance and promote the development of sustainable aviation fuel (SAF) projects in the country.
The ultimate goal of the two companies is to establish the conditions for a future commitment to purchase SAF from Bio-D by LATAM Airlines Colombia.
Initially, the agreement involves joint efforts to increase knowledge about SAF among production and logistics stakeholders, sharing relevant technical information for SAF development through collaborative efforts between the aviation and biofuel industries, and promoting collaboration with the public sector and various interest groups to define public policies and a roadmap for SAF production in Colombia.
See Also: Sustainable Fuel: LATAM’s First International Flight with SAF
Bio-D to Build SAF Production Plant in Colombia
Bio-D plans to construct an SAF production plant in Colombia, with an initial investment of USD$700 million and an estimated production of 50 million gallons made from raw materials such as agricultural, forestry waste, and energy crops in Colombia.
The company claims to have advanced technology that enables the conversion of this waste material into biofuel, which can reduce carbon emissions in air transport by around 70% compared to fossil fuel use.
“At Bio-D, we believe in Colombia and its vast agricultural potential that has enabled biofuels in our country for over 16 years and now, thanks to the energy transition, opens up the possibility of evolving towards the production of advanced fuels such as SAF.» – Javier Ospina, CEO of BioD.
Several companies have expressed interest in establishing biorefineries in South American countries due to their high utilization of raw materials and their large agricultural production. In 2022, LATAM stated that Colombia could become the major regional producer of biofuel (SAF), as it generates more than 67 tons of waste that could be used for SAF creation.
“Grupo LATAM sees Colombia as a strategic country for its energy transition, given its unparalleled potential for SAF production not only for the country but for the region. We believe that SAF represents an excellent opportunity for Colombia to achieve a rapid gain in its energy transition goals,” said Santiago Álvarez, CEO of LATAM Airlines Colombia.
Latin America’s Potential to Boost Biofuel Production
According to IATA figures, Latin America and the Caribbean have the potential to produce between 130 billion and 200 billion liters of alternative aviation fuels, which would represent 37% of consumption that includes not only regional airlines but also European and Asian airlines operating flights to Latin America and the Caribbean.
See Also: SAF Production to Grow by at Least 200% in 2022
However, transitioning to this fuel requires aligned efforts between the industry and government, in order to develop public policies that allow for investments and infrastructure development that generate competitiveness.
This announcement marks an important milestone for LATAM Group in achieving its energy transition goal and becoming carbon-neutral by 2050. The Group aims for 5% of its fleet, which currently consists of 310 aircraft, to use SAF by 2030, prioritizing production generated in South America.
Taking this into account, by that date, the airline projects to consume around 80 million gallons of sustainable aviation fuel.
