American company LanzaTech has chosen North Sea Port in Ghent as the site for its first European plant to produce sustainable aviation fuel (SAF) using alcohol-to-jet technology.
The project involves an investment of 500 million euros. The plant is expected to create 50 permanent jobs, in addition to approximately 300 jobs during the three-year construction period.
ArcelorMittal’s ethanol as feedstock
LanzaTech is a publicly traded American technology company specializing in converting carbon from industrial waste streams into new raw materials, sustainable fuel, and chemicals.
According to CEO Jennifer Holmgren, Ghent was chosen because of its existing industrial ecosystem and the logistics infrastructure along the Ghent-Terneuzen Canal.
The plant would be located directly across from ArcelorMittal’s Steelanol plant. The steel producer manufactures ethanol from captured industrial waste gases. That ethanol will now serve as feedstock for LanzaTech’s new plant, where a chemical process converts it into sustainable jet fuel.
The role of Steelanol, which uses LanzaTech-developed technology, in the new project is striking. As recently as late last year, questions were being raised about the economic viability of the facility, which cost some 200 million euros and has been operational for barely 3,5 years. At that time, there was open talk of a possible closure.
The regulatory framework was a particularly significant factor: the ethanol produced was not yet recognized as an advanced biofuel or recycled fuel, which meant that the climate benefits were not adequately reflected in the emissions balance.
According to ArcelorMittal, without a solution, the facility was at risk of becoming economically untenable. But now, LanzaTech’s planned SAF plant could provide an additional market for the ethanol produced in Ghent.
Annual SAF production of 79,000 tons
The facility is expected to produce 79,000 tons of SAF and 9,000 tons of renewable diesel annually. SAF is currently considered one of the most important alternatives to conventional kerosene in the aviation sector, where pressure is mounting to reduce CO2 emissions. European regulations also require airlines to increase the proportion of sustainable fuels in their fuel mix in the coming years.
The SAF plant is part of the FLITE consortium (Fuel via Low carbon Integrated Technology from Ethanol) and receives support through the European Horizon 2020 program. The facility must comply with international standards for SAFs, including CORSIA and the European ReFuelEU Aviation regulations.
Currently, there is only one commercial LanzaJet plant in operation worldwide, located in Soperton, Georgia (US). The plant has a capacity of approximately 10 million gallons of fuel per year.
In the UK, LanzaJet – the LanzaTech subsidiary that commercializes Alcohol-to-Jet technology – also has plants, specifically in Teesside. The facility will produce more than 90,000 tons of SAF and renewable diesel annually. All SAF produced is destined for British Airways, which would reduce the airline’s CO2 emissions by 230,000 tons per year.
No start date has been announced yet
At present, the preliminary studies are reportedly largely complete, the letters of intent for raw material supply have been signed, and the outlines of the off-take agreements have been finalized.
However, the investment is still subject to further permitting procedures and a final investment decision.
The notification for the environmental impact assessment (EIA) will soon be submitted to the relevant authorities, marking an important step in the project’s next phase. A specific timeline for the start of construction has not been announced.
‘Impact 2030’
According to North Sea Port, the project also demonstrates why the Port of Ghent remains an attractive location for new energy and chemical projects. The port offers extensive storage facilities for liquid bulk, existing fuel infrastructure, and multimodal connections via maritime shipping, inland waterways, rail, and road.
The presence of major industrial players also plays an important role, as does the ‘Impact 2030’ strategy, which fully commits to the energy transition, the circular economy, and alternative fuels such as hydrogen and biofuels. The port area is home to 550 companies and creates direct and indirect employment for 106,000 people.
SAF is already being produced in Belgium, although this is a relatively recent development. Last August, TotalEnergies began producing SAF at its Antwerp refinery. The SAF is produced via co-processing, an integrated method in which renewable feedstocks are processed alongside petroleum within an existing refining facility.
The raw materials used are cooking oil and animal fats. The company was already aiming to reach 50,000 tons of production by 2025, enough to make Belgium self-sufficient under the current European SAF mandate.
