BUSINESS: 515 PRACTICES
Founded in 1998, HELLENiQ ENERGY (https://www.helleniqenergy.gr/en) is one of the leading energy groups in South East Europe, with presence in 6 countries and activities spanning across the energy value chain, namely: oil refining and fuel marketing, exploration and production, renewable energy sources, petrochemicals, power and gas.
The action to provide Greece with sustainable aviation fuel (SAF) blended with conventional aviation fuel is an initiative that aims to put Greece on the map of green air transports, initially through Thessaloniki Airport, from where all AEGEAN Airlines flights are supplied with SAF. This action paves the way for the timely adaptation of our country to the objectives of the forthcoming European legislation for the mandatory use of SAF 2% in 2025 in all flights from EU airports, and lays the foundations for creating the necessary conditions to include the country in the map of sustainable air transports.
At the same time, with this action, HELLENiQ ENERGY Group contributes to the achievement of the sustainable development objectives of the aviation industry without requiring modifications to aircraft engines or significant changes to airport infrastructure. As stated in a relevant press release by the CEO of HELLENiQ ENERGY Group Mr . A.Shiamishis, “The cost of this new fuel is four times higher and the international production is very small. The inclusion of SAF in the national energy planning can provide the necessary supportive and institutional framework and provide additional incentives for the significant investments that will be required for its production on a large scale".
The action of providing sustainable aviation fuel from an airport in Greece is addressed to social partners such as:
- The airlines, which are now informed about the possibility of reducing their carbon footprint by supplying their aircraft in Greece
- The business partners
- The State and the Regulatory Authorities
- Investors
- The international organizations of the aviation industry
- The general public
- The suppliers of HELLENiQ ENERGY
- The employees of the business units of HELLENiQ ENERGY, HELPE DEPPP and EKO ABEE; and
- Future generations.
EKO's cooperation with AEGEAN for the supply of sustainable aviation fuel (SAF) in a blend with fossil aviation fuel is being implemented at MAKEDONIA airport and started in March 2022, providing 2% SAF until 31/12/2022.
This partnership was renewed for the period 1/1/2023 to 31/12/2023 providing for an increased SAF content of 4% SAF on a yearly basis.
HELLENiQ ENERGY, through its subsidiary EKO ABEE, has undertaken to provide Sustainable Aviation Fuel (SAF) in Greece and specifically at Macedonia Airport for AEGEAN Airlines flights departing from its base in Thessaloniki.
Sustainable Aviation Fuel (SAF) is produced by various chemical treatments, depending on the raw materials used. What makes SAFs sustainable is that they are produced either by using as raw materials , ones that have already produced carbon (waste of biological origin or recycled carbon fuels), or by capturing carbon for their production (synthetic SAF produced by capturing carbon dioxide (C02) and hydrogen from renewable electricity).
The contribution of SAF to the reduction of CO2 emissions is determined over the entire life cycle of the fuel, from the production of the feedstock to the emissions from its combustion.
Today, the most widespread SAF production pathway is the processing of fatty acids (HEFA) derived from 100% sustainable feedstocks of biological origin, applying the principles of the circular economy, i.e. from waste cooking oils and animal fats from which biofuel is produced with very low life-cycle emissions compared to conventional fossil hydrocarbon aviation fuel.
The physico-chemical characteristics of SAF, based on the relevant international standards that have been established, are similar to fossil fuels and allow it to be blended with conventional aviation fuels and used by aircraft engines without requiring changes or modifications to the engines, as certified by major aircraft engine manufacturers.
The sustainable aviation fuels with which EKO supplies AEGEAN's flights from Macedonia airport are produced in modern SAF production units from which the HELPE DEPPP refinery in Thessaloniki imports.
EKO's cooperation with AEGEAN for the supply of SAF to its flights from Macedonia Airport started on 1 March 2022 and provided for a 2% SAF rate on all its flights from Macedonia Airport until 31 December 2022.
In 2023 the cooperation between EKO ABEE and AEGEAN for the supply of SAF to its flights from Thessaloniki airport was renewed, anticipating an increased SAF rate, which will reach an annual average of 4%.
For the 9 months January-September 2023, the addition of SAF to AEGEAN's flights from Thessaloniki airport has contributed to the reduction of the carbon footprint of aviation by 557.84 tn CO2 in the period January-September 2023.
On a full year basis, it is estimated that in 2023 the CO2 emissions reduction from this action will be between 750 to 770 tn CO2.
Regarding the production mode of SAF and the certification of its sustainability characteristics:
- EKO ABEE through ELPE DEPPP ensures the supply of SAF from large producers implementing a certified sustainable renewable fuel system (mainly biofuels, as non-biological renewable fuel technologies are not yet generally mature).
- The renewable part of aviation fuel is produced in a sustainable way using best practices and production routes by applying a corresponding certified sustainability system.
The feedstock used for the production of the renewable fuel is produced in accordance with the sustainability criteria set out in the Renewable Energy Directive (2018/2001/EU) ("RED II") and the methodology for calculating the GHG emission reduction. As required by the RED II Directive, the renewable fuel should have a CO2 emission intensity reduced by at least 50% compared to fossil fuel. Depending on the date of commissioning of the renewable fuel production installation, the minimum emission reduction requirement is set at 60% for installations commissioned after 5 October 2015 and until 31 December 2020 , and up to 65% for installations commissioned from 1 January 2021.
- For all deliveries of aviation fuel containing renewable aviation fuel (SAF), EKO ABEE shall issue a Proof of Sustainability (PoS) of the renewable part (SAF) indicating the type of raw material, the country of origin , the quantity delivered in a blend with the fossil fuel, the emission intensity of the renewable fuel and the percentage of emission reduction achieved.
To date, EKO delivers to AEGEAN SAF with an emission reduction of more than 80%, choosing SAF produced from raw materials that do not come from food crops and which do not compete with the food chain, nor from forest degradation (first generation biofuels). The choice is exclusively between advanced biofuels (second generation), and this is what the forthcoming ReFuelEU Aviation Regulation, which has been consulted since July 2021 as part of the Fit for 55 package of measures to reduce greenhouse gas emissions by 55% in 2030, is expected to establish.
- EKO ABEE implements all of the above within the framework of its certified sustainable biofuels system. The certification of EKO ABEE has been obtained from a specialized body approved by the European Commission, while the implementation of the certified sustainable biofuels system is audited annually by an independent accredited body.
In the above context, EKO, as well as HELPE DEPPP, with this initiative in cooperation with AEGEAN, is preparing to face the challenges of the implementation of the upcoming ReFuelEU Aviation Regulation for mandatory addition of SAF on all flights from every airport in Europe from 2025.
The implementation of the sustainable aviation fuels action to reduce the carbon footprint of aviation is a recognition and support of the new emerging market for sustainable aviation fuels (SAF) by HELLENiQ ENERGY and its subsidiaries HELPE DEPPP and EKO ABEE.
- This action contributes to the reduction of the carbon footprint of air transport by 750 to 770 tn CO2 according to the following 9 months 2023 data, the and SAF rate of 4% averaged over all deliveries to AEGEAN for its flights from Thessaloniki airport.
Average SAF emissions intensity (January-September 2023): 12.05 gCO2 eq/MJ
Mean average CO2 emissions reduction (January-September 2023): 87.2%
Total CO2 emissions reduction through SAF (January-September 2023: 557,84 tn CO2
For the period March-December 2022 and with a SAF 2% rate on all AEGEAN flights from Thessaloniki airport, an emissions reduction of 235.58 tn CO2 has been achieved.
- This action highlights the need to integrate SAF into national energy and climate planning in order to trigger the necessary investments for domestic SAF production.
The action of supplying all AEGEAN flights with 4% SAF in a blend with fossil aviation fuel for 2023 is implemented at MAKEDONIA airport where EKO delivers to AEGEAN's base aviation fuel with a reduced carbon footprint due to the SAF content.
At the ELPE DEPPP facility at its refinery in Thessaloniki, SAF is received and imported accompanied by a Proof of Sustainability (PoS) certificate based on the sustainability system that is also required to be implemented by the SAF supplier.
Taking into account the sustainability characteristics of its SAF inventories, HELPE DEPPP issues monthly sustainability certificates to EKO ABEE. EKO ABEE, with a corresponding mechanism for transferring the sustainability characteristics of the SAF batches received in a mixture with fossil fuel, shall then issue a monthly sustainability certificate to AEGEAN for the SAF deliveries made.
The certification of SAF sustainability is carried out at the headquarters of the operators HELPE DEPP and EKO ABEE, with the application of a mass balance for sustainable fuel (SAF), in accordance with the provisions of Directive 2018/2001/EU) ("RED II").
In addition, EKO SA, as a fuel supplier in accordance with the provisions of the RED II Directive, includes the quantities of SAFs handled and their sustainability characteristics in the annual biofuels sustainability statement submitted to the Ministry of Environment through its authorized representative - Biofuels Sustainability Officer.
The implementation of the sustainable aviation fuels action to reduce the carbon footprint of air transport was carried out in cooperation with AEGEAN Airlines.
As stated in a press release by AEGEAN's President Mr. Efthimios Vassilakis "At AEGEAN we have been working systematically in recent years for more green and environmentally sustainable transport, both through our fleet renewal program and through the implementation of sustainable and innovative solutions, such as the extended use of sustainable fuels on our flights."
For the implementation of this action, employees of HELLENiQ ENERGY and HELPE's subsidiaries DEPPP and EKO ABEE worked as a team, with awareness and focus on the available technologies and the determination of the emission intensity that determines the sustainability of SAFs. The SAF promotion project implementation team is composed of employees and executives from the fields of energy policy, supply , refining, facilities, aviation fuel marketing and sustainable renewable fuel certification.
With this action, HELLENiQ ENERGY and its subsidiaries HELPE DEPPP and EKO ABEE contribute to the achievement of their objectives for sustainable development, particularly with regard to climate and clean energy.
These objectives are also in line with the targets for the use of renewable fuels in the transport sector, which EKO ABEE has as a fuel supplier in this sector under the provisions of Directive 2018/2001/EU) ("RED II") .
At the same time , through the agreement between EKO ABEE and AEGEAN Airlines, the foundations are laid to create the necessary conditions to include the country in the map of sustainable air transports in order to maintain the competitiveness of Greek airports and HELLENiQ ENERGY and EKO ABEE in the aviation fuel sector.
Finally, through this action, EKO ABEE, as well as HELPE DEPPP are preparing to manage the requirements of the forthcoming ReFuelEU Aviation Regulation for mandatory addition of SAF to all flights from every airport in Europe at a rate of 2% in 2025, 5% in 2030 and progressively increasing to 38% in 2045 and 63% in 2050, with a parallel mandatory synthetic SAF content of 0.7% in 2030, 5% in 2035 and progressively increasing to 28% in 2050.
