PtX Lab Lausitz publishes study on book & claim for green jet fuel

A reorganisation of the production and supply chains in line with a book & claim (B&C) approach has several advantages for ensuring a sufficient market supply of synthetic sustainable aviation fuel (SAF) in the future. This is the conclusion reached by the team of authors of the recently published PtX Lab Study "Book & Claim for Green Jet Fuel. Trading in Certificates for Climate-Neutral Aviation". As part of the PtX Lab Talk series of events, the authors, led by Anita Demuth, Deputy Head of the PtX Lab Lausitz, and Dr Sören Schwuchow, Coordinator of the PtX Lab Working Group on Regulation & Policies, provided an insight into the results of the study.

Advantages of a Book & Claim approach: reduced risk of strategic dependencies and a particular sustainability

B&C is based on the separation of the physical product from its production method, i.e. the isolation of conventional aviation fuel and sustainability in the form of a certificate. Sustainable aviation fuels (SAF) are therefore created by combining a certificate with aviation fuel of any origin.

The employees of the think and do tank and the authors of the study recognise several advantages in this. In addition to cost savings, they predict a reduced risk of strategic dependencies between countries and a particular sustainability through production sites in locations with optimal resource availability.

Study identifies concrete political steps

"In order to support the SAF market ramp-up and thus climate protection, European policy-makers need to carefully design the institutional and organisational structure of the B&C system. Only then can unintended consequences and misplaced incentives be avoided," explains Anita Demuth.

In order for more efficient market transactions to have a positive impact, it is also necessary to find the optimal balance between standardisation, climate protection and (additional) sustainability. To this end, the study proposes initially limiting implementation to the European Union. It also identifies the following concrete political steps, among others:

• Inclusion of B&C systems in existing EU legislation and international bodies (RefuelEU Aviation, CORSIA, Greenhouse Gas Protocol)
• Measures to strengthen voluntary B&C markets and the possibility of using them in mandated markets
• Adequate consideration of electricity-based aviation fuels, possibly through two separate systems

About the study

The PtX Lab Study "Book & Claim for Green Jet Fuel. Trading Certificates for Climate-Neutral Aviation" was prepared by the PtX Lab Working Group on Regulation & Policies. The working group deals with entrepreneurial and political risks, questions regarding their hedging, as well as regulatory and economic aspects of the market ramp-up of PtL pilot plants. The 89-page publication was produced under the leadership of Anita Demuth, Deputy Head of PtX Lab Lausitz, and Dr Sören Schwuchow, Coordinator of the PtX Lab working group.