Biofuels and SAF – Advancing Energy Transition Through Digitalization and Electrification

Biofuels and Sustainable Aviation Fuel (SAF) are essential for decarbonizing the global energy mix, especially in the transportation sector, which contributes nearly 15% of global GHG emissions. While road transport is advancing through electrification, aviation and maritime sectors still rely heavily on conventional fuels due to current technological limitations.

With air travel expected to double by 2050, aviation emissions are set to rise, challenging net-zero targets. The SAF market is projected to grow rapidly (CAGR of 40–50%), primarily driven by government mandates. Countries like the U.S., Brazil, and India support alcohol-based SAF from feedstocks like sugarcane, corn, and oilseeds to strengthen their agricultural economies.

Many SAF projects are approaching Final Investment Decisions (FID), but face cost and technical barriers. Established oil and gas companies are leading due to their infrastructure and capital, while smaller producers seek investment to scale.

One of the biggest barriers to SAF adoption is cost. Biofuel-based SAF is currently 2–3 times more expensive than traditional jet fuel, while eSAF can be 6–8 times higher. In an industry with tight margins and strict safety regulations, this level of spending is unsustainable unless it represents a small portion of overall fuel costs.

Europe’s initial mandate of a 2% SAF blend may seem modest, but it will rise over time. Airlines may pass these costs to consumers—for example, a $500 (₹41,500) ticket could increase by $10 (₹830) with just a 2% SAF blend. The key question: will passengers accept this added cost for sustainability?

The industry hopes SAF costs will drop over time, eventually reaching parity with fossil fuels in some regions. SAF can cut emissions by 80–90%, but scaling up to meet 2050 net-zero targets will require tackling CAPEX, OPEX, and technical barriers.

Digitalization and electrification strategies can help reduce SAF project costs and improve efficiency—crucial steps toward realizing its full climate potential.

Digitalization and electrification are critical enablers for accelerating the adoption of biofuels and SAF by improving operational efficiency and reducing costs. Unified power and process management systems—long siloed—are now converging, enabling better integration of renewable energy sources with process automation. For example, in the production of eSAF, green hydrogen generated by energy-intensive electrolyzers accounts for a majority of operational costs. Optimizing both power and process through digital tools is essential to drive down these costs.

By adopting advanced digital twins and predictive analytics, facilities can simulate and optimize operations virtually, reducing downtime and improving energy usage. Electrification of industrial processes, such as boilers, compressors, and pumps, powered increasingly by renewable electricity, further drives emissions reductions. The integration of AI-powered microgrid optimization helps balance energy supply and demand, leveraging renewable generation and battery storage to maximize efficiency and profitability.

Standardization and modularization of SAF production units also help reduce costs by enabling scalable, repeatable deployments closer to feedstock sources. Meanwhile, carbon tracking technologies ensure transparency and certification of SAF’s carbon intensity, meeting regulatory and market demands for sustainability.

AEPL focuses on delivering industrial automation and integrated power management solutions tailored for energy-intensive sectors including manufacturing, chemicals and utilities. Our expertise supports clients’ sustainability journeys through:

• Integrated Power and Process Automation: AEPL helps unify power management and process automation, enhancing energy efficiency and enabling real-time, data-driven decision-making that reduces waste and emissions.
  
• Electrification Solutions: AEPL assists in transitioning industrial processes from fossil fuels to electrical energy, particularly renewable sources, by upgrading automation and integrating smart energy management systems.
  
• Energy Efficiency Consulting: Beyond technology, AEPL provides tailored consulting to identify energy savings and create roadmaps aligned with business goals and environmental regulations.

While AEPL may not directly produce biofuels or SAF, its automation and power management expertise enable the manufacturing and processing plants in this sector to operate more efficiently and sustainably, thereby supporting the wider energy transition.

Biofuels and Sustainable Aviation Fuel are vital to decarbonizing sectors where electrification faces limits, such as aviation and maritime transport. However, their successful adoption depends on overcoming cost and technical challenges. Digitalization and electrification technologies—especially integrated power and process management, digital twins, AI optimization, and electrification of industrial equipment—play a pivotal role in enhancing operational efficiency and reducing costs.

AEPL is committed to supporting industries in this transition by delivering advanced automation and power management solutions. Through these efforts, we help enable more sustainable industrial processes that contribute to global net-zero goals.

• Uptime Institute, 2023 Survey on Data Center Outages
  
• International Energy Agency (IEA) Reports on Biofuels and SAF
  
• Economic Times, 2023, Industry Downtime Costs in India
  
• Adaptive Engineering Pvt. Ltd. Official Website: https://adaptive-engg.com/