November 20, 2024
Last week at the ERTC event in Estoril, Portugal, Alder Renewables connected with old friends and partners while meeting some new ones, too. ERTC is the premier annual conference for European refiners, and a great event for learning about energy transition activities and new technologies for decarbonization. Our goal was to better understand the industry's needs for low carbon transport fuels and continue to educate key audiences about our biomass-based pathway to sustainable fuels and biochemicals.
Economic and political changes are positioning the EU to become the world leader in the clean energy transition. While existing regulatory programs are a great start, a strict long-term focus will be required to meet mandates beyond 2030. Unfortunately, project development momentum has slowed and investment decisions are delayed. This is particularly acute in e-fuel projects as long-term competitiveness is brought into question with estimated fuel production costs above €5,000/MT (McKinsey).
Stateside, political turbulence and unpredictability will settle, but for now we await clarity on the path ahead from the incoming administration. While we wait, consistency and clarity are moving the market forward in the EU despite the macro conversation on the bloc's long-term economic resiliency.
With SAF mandates beginning in 2025, refiners seem comfortable that existing plans for dedicated HEFA production and co-processing can meet ReFuelEU SAF targets. However, deployment of next stage technologies to meet steadily increasing production requirements in 2030 and beyond are less clear. During the Biofuels Roundtable at ERTC, refiners, like Repsol, Galp, and Versalis, commented that higher expected fuel costs combined with technology readiness challenges are slowing decision making.
Further clouding the issue is the fact that project development activity and timelines are typically five years minimum. Making large investment decisions is a challenge because policy and regulatory changes can often occur during that timeframe. Refiners seem focused on strategic plans that use existing infrastructure to be in a strong position to win. Sustainable processes that utilize local resources, such as biomass and circular plastics, will have a competitive advantage over companies that import feedstocks.
Even though the US market has strong incentives for SAF delivered through the IRA, a structured mandate program in the EU will likely increase SAF exports from the US to the bloc. To encourage US-produced SAF to be consumed on home soil, only minor changes to policy are necessary.
First, by adding simple language to the IRA regarding repayment of the 45Z Clean Fuels Production Credit for any SAF exported, we can harness the fuel's decarbonization impacts at home. This concept is similar to the obligation for exporters to retire the RIN credit when transporting ethanol or biodiesel outside the country. Second, the structure of the Department of Energy and Department of Agriculture's grant and debt financial support processes can require more than 50% of annual SAF production to be consumed within the US market. These straightforward changes would dramatically accelerate production nationally. We don't suffer from a demand side issue; the investment must be on the supply side.
Overall, EU refiners and regulators are years ahead of the US when it comes to decarbonization. Energy market participants that ignore this dynamic will be at a disadvantage and must flex their muscles to influence policy direction.
At Alder Renewables, we are working closely to ensure the transition to sustainable fuels optimizes existing infrastructure and delivers competitive cost of CO2 abatement to end users. We will continue to make our voice heard to ensure that the race to decarbonize is competitive and viable – on both sides of the Atlantic.
November 13, 2024
Today, we're thrilled to announce the addition of three distinguished industry leaders to the Alder Renewables Board. Each brings their own unique blend of expertise and insight to our work, and is committed to our mission to replace fossil-based products and help rebalance our relationship with the planet.
C.R. Sincock, II joins our board with an extensive background in aviation fuel and services. As Executive Vice President of Sincock-family owned Avfuel Corporation, the largest supplier of sustainable aviation fuel (SAF) in business aviation, C.R. brings Avfuel's 50+ years of logistics expertise to Alder Renewables.
C.R. leads Avfuel's focus on innovative sustainable solutions, including expanding the availability of physical SAF across Avfuel's network of airports, deploying robust book-and-claim programs, and making investments in next generation SAF technologies. He also serves as President and CEO of Avflight (26 FBOs globally) and sits on NATA's board. His operational leadership will be vital as we advance the Alder Renewable Crude (ARC) platform. Along with an undergraduate degree in economics from Harvard College and an MBA from Harvard Business School, C.R. is also completing a master's degree in biotechnology from Johns Hopkins University. Furthermore, C.R. is the founding investor and senior strategic advisor of Kriya Therapeutics, a leading gene therapy company developing long-term cures for chronic diseases.
Kennedy Ricci brings a unique blend of aviation heritage and sustainability expertise to our board. As the President of 4AIR, Kennedy has been at the forefront of facilitating the decarbonization of the aviation industry.
A passionate pilot himself, Kennedy comes from a family dedicated to aviation. He launched 4AIR to create programs that cater to the industry's unique needs while promoting transparency and making sustainability more accessible. These programs can include carbon offsets, new sustainable fuels, contrail mitigation, research around novel technologies, and tracing SAF through the Assure SAF registry.
Kennedy's perspective on the intersection of aviation and sustainability will be crucial as we continue to trial and test SAF derived from our core ARC platform.
We're also excited to welcome Darren Fuller, our very own Chief Commercial Officer, to the company board. Darren joined Alder Renewables in May 2022 and oversees our commercialization strategy, financial and customer engagement.
With nearly two decades of experience in aviation, Darren has spent his career at the intersection of business development, aviation, and sustainability. His extensive background includes roles at World Fuel Services, where he managed their exclusive relationship with Dow Chemical for aircraft deicers and over $350m in fixed assets to support branded dealership and airport relationships. Prior to joining Alder Renewables, he found a passion for sustainability and led efforts to introduce carbon reduction and accounting products to business and commercial aviation customers.
He is a past member of the Environmental Committee at the National Air Transportation Association, and a current member of the SAF Coalition, the goals of which are to advance sustainability initiatives across the aviation sector in the United States. Darren is a private pilot, avid golfer, and a graduate of Hamilton College.
The addition of these three industry leaders to our board comes at a crucial time for Alder Renewables. As we continue to develop our technology and pursue pilot scale development, their combined expertise and deep sector-specific experience will be invaluable.
Welcome aboard, C.R., Kennedy, and Darren. We look forward to the impact your collective experience will have on our work to unlock decarbonization for refiners and maximize their commercial optionality.
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