Fortum on powering a groundbreaking cross-industry ecosystem.

Synthetic aviation fuel brings together several parts of the energy system that are usually considered separately. Renewable electricity is used throughout the eSAF production process: to convert CO2 into green carbon monoxide (CO) and to produce green hydrogen. And eventually to synthesize green CO and green hydrogen to create synthetic crude.

This is where Fortum’s core expertise comes in. As Satu Sipola, VP, P2X & Project Execution at Fortum, explains, the company brings expertise in electricity markets, energy solutions and the emerging hydrogen economy.

Fortum already has a broad and diverse electricity generation portfolio and is developing more than 8 GW of solar and onshore wind projects across the Nordic countries towards ready to build status. Its first own hydrogen production facility has also recently been commissioned at Kalla in Loviisa, Finland.

These developments reflect a broader shift in the energy system: electricity, hydrogen and transport are becoming increasingly interconnected. For Fortum, eSAF is a practical example of how low-emission electricity can help decarbonise sectors that cannot simply switch to direct electrification.

“eSAF is a good example of how electricity, hydrogen and transport become part of the same value chain, demonstrating industrial decarbonisation through electrification” Sipola says.

Making the economics work

As said, synthetic fuel production is highly energy-intensive, which means energy solutions have a direct impact on both production costs and the profitability of future investments.

This is why Fortum sees its role as broader than simply supplying energy to an individual project. The ambition is to help create the conditions for a new, competitive low-emission industry in Finland – one where low-carbon and affordable energy is available to projects at the scale they need.

“What makes this ecosystem interesting is that it brings together companies that have not traditionally operated in the same field. When aviation, the energy sector, technology providers and infrastructure operators come together, there is an opportunity to solve challenges that a single organisation couldn’t solve on its own.”

The beginning of a whole new industry

The eSAF challenge is multidimensional, but reducing production costs is what matters the most at the moment. eSAF remains significantly more expensive than conventional aviation fuel, making cost competitiveness essential for scaling up production.

EU renewable aviation fuel mandates can play an important role by creating demand and certainty for the emerging market. At the same time, new industrial projects will require more fossil-free electricity generation and a strong electricity grid to support them.

The first projects will also carry significant technological and execution risks. That makes collaboration across the ecosystem particularly important: different partners need to bring together their expertise while sharing and managing the risks involved in building something that has not yet been done at industrial scale.

“If we succeed in building a functioning ecosystem, Finland has all the prerequisites to become a significant producer of sustainable aviation fuels. We want to be part of enabling that development from the beginning”, Sipola states.

Next in the series: Finavia on the infrastructure connecting eSAF production with the aviation ecosystem.