March 5 (Renewables Now) - Sweden is proposing a 27% greenhouse gas (GHG) reduction mandate for aviation fuel sold in the country in the year 2030 and the plan is to reach that level step by step, starting with a 0.8% reduction in 2021.
Finnish group Neste Corp (HEL:NESTE) applauded the move on Monday, saying that Sweden is showing the direction the aviation sector must take to reach its emission reduction target. Peter Vanacker, chief executive of Neste, added that the country is creating the necessary predictability in demand for renewable jet fuel producers to invest in additional capacity.
The aviation industry aims at carbon-neutral growth from 2020 and it has also set itself a target to reduce by 50% net aviation carbon emissions by 2050.
Achieving the GHG emission reduction goals of Sweden is estimated to require 11,000 tonnes of sustainable aviation fuel in 2021, 56,000 tonnes in 2025 and 340,000 tonnes in 2030, Neste said. The company is confident there will be enough capacity to meet renewable jet fuel demand from Sweden and neighbouring Norway, where a 0.5% biofuel blending mandate enters in force in 2020.
At the end of 2018, Neste announced that it will invest some EUR 1.4 billion (USD 1.6bn) to boost its renewable products manufacturing capacity in Singapore and reach almost 4.5 million tonnes in 2022. Neste’s annual renewable products manufacturing capacity stood at 2.7 million tonnes at the time, with Singapore and the Netherlands home to production bases for over 1 million tonnes each. The rest was in Finland.