Boeing executive sees sustainable aviation fuel as ‘key to airline industry’s decarbonization’

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Updated 13 November 2022
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Boeing executive sees sustainable aviation fuel as ‘key to airline industry’s decarbonization’

  • Sustainability Policy region lead Robert Boyd tells “Frankly Speaking” the industry is committed to decarbonization over next 30 years
  • He calls for investment in sustainable fuel, replacement of old fleets, and operational and traffic-management improvements

DUBAI: The aviation industry is committed to decarbonizing, but with air travel set to triple by 2050, alternative energies such as electric and hydrogen will not solve the challenge; airlines must replace old fleets, airports should improve air traffic management structures and industry must invest in sustainable aviation fuel.

However, there is a “huge amount of work” needed to drive down SAF prices, including more research and development, and technological development on feedstock. Also, SAF must be available to developing countries to make an impact beyond the largest aviation hubs. This is according to Robert Boyd, an expert in SAF and the regional lead of aircraft manufacturer Boeing’s global sustainability policy and partnerships.

Appearing on “Frankly Speaking,” the Arab News weekly current-affairs talkshow that dives deep into regional headlines and speaks with leading policy makers and business leaders, he said: “The good news is that there are several pillars of action that the aviation industry has at its disposal, and these are working to essentially execute the decarbonization challenge over the next 28 years.”




Boeing executive Robert Boyd being interviewed by Katie Jensen on Frankly Speaking.

But given that “technology limitations do not allow for hydrogen or electric to power wide-body, long-haul aircraft, SAF is the key.”

With climate change taking center stage at the UN Climate Change Conference in Egypt, many people are wondering whether the aviation industry — currently responsible for 2.5 percent of global emissions — can really go green, or if real progress is still decades away.

“In a decarbonizing world, if all sectors are not doing it at the same pace, then the relative scale of emissions for aviation or shipping makes it hard to decarbonize,” he said. “So, it is absolutely critical to decarbonize. There is a clear plan to achieve net zero by 2050. And that can be done through various pillars.

“The obvious one is new aircraft. A new aircraft can be anywhere from 20 to 25 percent more fuel efficient than its predecessor.”

Boyd called them “significant numbers,” pointing out that something like 25 tons of carbon dioxide can be saved per day saved by using the best-in-class modern fleet. “That can be a couple of hundred thousand tons of CO2 over its lifetime. So, we need to ensure that we are using the most efficient modern fleet, which might get 15 to 25 percent CO2 dividend globally. It is not small.”




An Airbus A350-900 is refueled with sustainable aviation fuel produced by French energy group Total at France's Roissy airport on May 18, 2021. (AFP file)

He cited operational efficiencies as another opportunity for improvement. “Aviation has been on this for several years or even decades. A lot of the easy operational improvements are already there. They’re embedded in the technology that we use today,” he said.

Improvements in air traffic management offer yet another opportunity, but these solutions have limitations, according to Boyd, will not fix the aviation emissions problem. “The major one is replacing the energy source with something sustainable. That’s where we put significant emphasis on sustainable aviation fuel as it is doing to do the heavy lifting on decarbonization till 2050.”

What about ideas of electric or hydrogen as a potential replacement for kerosene? “These are really exciting, and there has to be continued work on this, but they won’t, by themselves, solve the decarbonization challenge,” Boyd told “Frankly Speaking” host Katie Jensen.

“Today about three quarters of all of the international emissions are from wide-body long-haul travel, and technological limitations don’t allow for hydrogen or electric in that space just yet. Maybe it may be in due course, but today it’s not a viable solution. So, SAF is the key over the next 30 years.”

The problem with SAF is of course the price: More than double the price of regular jet fuel, plus it is in short supply. Figures from 2019 show that SAF accounted for just 0.1 percent of global fuel use for jets, while the 2025 target was to have 2 percent of global jet fuel come from SAF.




Surging jet fuel prices have hampered airline efforts to rebound from two years of the COVID-19 pandemic. The cost of sustainable aviation fuel is currently double that of regular jet fuel.  (AFP)

Under the circumstances, should governments step in and subsidize, or will travelers be forced to pay with higher airfares?

“We do talk in a very positive way about sustainable aviation fuel and the potential. But that realism around where we are at today is really important because it shows what degree of challenge lies ahead,” said Boyd. “What is going to be needed is exponential growth. We are on track for around somewhere between 4 and 6 billion liters of SAF by 2025. But it still leaves a huge mountain to climb in terms of scaling up.”

Having said that, Boyd acknowledged there are big barriers to scaling up faster. “Definitely cost. If SAF was at cost-cost parity today and it was available, every airline would use it. We need to benefit from the efficiencies of getting scaled. That is really just starting. There is a huge amount of work, sort of research and development and technology, pure technology work on feedstock, which can bring some of these prices down,” he said.

He cited the US as a good example where the Inflation Reduction Act of 2022 “provides a huge incentive to develop green hydrogen and renewable fuels for (uses in) both ground and in air especially. There is a wave of supply coming along. And with that, I expect we will see price improvements.”




A Hop (Air-France low cost company) plane is refueled at Roissy-Charles de Gaulle Airport, north of Paris, on August 6, 2018. (AFP file) 

Boyd said he is optimistic about SAF supplies too. “There is expansion of existing facilities and new facilities are being developed. Some of these are starting to come online now, 2022,” he said. “There will be more in 2023 going right through to 2025 and beyond. We have visibility, with some respectable granularity, out to about 2027.”

There is talk about hydrogen-powered planes, but hydrogen requires a large volume to store it which would require a complete redesign of a plane. What does Boyd think of the potential of the zero-emission fuel?

“Certainly, there is a lot of work going on with hydrogen. There is still a lot of learning to do there. It is accurate to say we can do it,” he said. “But what if you have a drastically different-looking plane? Moreover, trying to totally redesign airports could change the whole efficiency of aviation in terms of restrictions for how you refuel a hydrogen plane. There are trillions of dollars of fuel infrastructure already, either in the ground or pipelines going to airports.”

He described these as “really complex questions” that need answers before you can have a sort of a sensible discussion on whether hydrogen is actually realistic as a solution for aviation in a 2050-2100 timeframe. This is “certainly not to say that there should not be continued work going on there, but it really will not be the silver bullet.”

Does Boyd think the carbon reductions that are being talked about COP27 and other big events will change the future of airports such as Saudi Arabia’s NEOM Airport? “If you are building a brand new airport, (you have to) think 10 or 15 years into the future. What is likely to be feasible, plausible or actually implemented, things like, should you have hydrogen supply built into the airport? It is much easier to do this when you are building the airport than to do a patched-up effort.”

Boyd does not rule out the idea of retrofitting carriers, something in which Ryanair has invested about $200 million. He cited the example of the eco demonstrator, a program by which Boeing buys back an existing aircraft from an operator. “We set it up as an experimental lab, putting all sorts of technology on board to test anything and everything. There have been about 300 different technologies tested on the eco-demonstrator over the past decade. Many of these you now see being introduced into planes today.”

He also talked about how Boeing is trying to make planes lighter and more fuel efficient, and whether these will change travelers’ experience. “People may not appreciate the amount of carbon fiber that in a Boeing in a Dreamliner or a 787. But that is tremendous in terms of weight,” he said. “It is incredibly strong and incredibly light, allows the appropriate amount of flex, which can give better aerodynamic properties from the wings.”

As of now, most of the aviation emissions are coming from developed nations, but the future of growth is expected be in developing countries. Will they have the deep pockets of nations like the US and Europe to fund emission reductions? “This comes to the crux of why decarbonization is critical,” Boyd said. “You need to decouple carbon dioxide from aviation itself.

“If we just focus on a couple of (advanced industrial) countries and think the job is done, then it is not at all. The same momentum needs to translate to China, India, parts of Asia, all of Asia. There are some fast-growing areas like Indonesia, Bangladesh, South America and Africa. (It is important) to make sure no country is left behind.”

 


Saudi Arabia to offer 5k sq. km of mining exploration opportunities in 2025: Alkhorayef

Updated 5 sec ago
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Saudi Arabia to offer 5k sq. km of mining exploration opportunities in 2025: Alkhorayef

RIYADH: Saudi Arabia is promoting upcoming exploration opportunities across 5,000 sq. km mineralized belts in 2025 as the Kingdom continues its steadfast growth in the mining sector, according to a minister. 

Speaking at the Future Minerals Forum in Riyadh on Jan. 15, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef said that the Kingdom’s mining sector is the fastest growing globally, with a mineral potential estimated at $2.5 trillion. 

This allocation of new exploration sites to tap mineral wealth is part of Saudi Arabia’s efforts to establish mining as the third pillar of the Kingdom’s industrial economy. 

Earlier this month, Saudi Arabia allocated five sites for establishing mining complexes in the Makkah and Asir regions as part of the nation’s strategy to attract quality investments, enhance transparency, and support local communities.

“Guided by our Vision 2030, Saudi Arabia’s mining sector has become the fastest growing globally, with a mineral potential estimated at $2.5 trillion. Our focus on regulatory frameworks, innovation, and infrastructure development has helped the Kingdom to become the top-tier destination for mining investment and exploration,” said Alkhorayef. 

He added: “This year also, we are promoting upcoming exploration opportunities across 5,000 sq. km of promising mineralized belts. Our exploration incentives program, launched only last year, is already giving results with six companies receiving funding.” 

Alkhorayef said that Saudi Arabia has also launched the Mining Innovation Studio aimed at turning Riyadh into a global hub for the industry and accelerating cutting-edge technologies.

“This is just one step toward realizing Riyadh’s vision of becoming the Silicon Valley of mining,” added the minister. 

During the speech, Alkhorayef said that events like FMF are crucial to elevating the mining sector and ensuring sustainable growth of the industry. 

Highlighting the progress of the forum, the Saudi minister added that the FMF has evolved and grown, with the number of attendees increasing from 3,500 in 2022 to over 20,000 in 2025. 

“Within a few years, we could make FMF the most prominent international platform for minerals around the world, contributing to forming the future of the sector and achieving sustainable growth,” said Alkhorayef. 

He added: “This year, under the theme, ‘The Year of Impact,’ we gather with a shared commitment to tackle some of the most pressing challenges of our times; ensuring a sustainable energy transition, addressing critical mineral shortage, and fostering economic prosperity for all.” 

During the talk, the minister added that this year’s FMF will also witness the launch of the first-ever regional leadership roundtable focussing on Africa, Central Asia, and Latin America to create a “powerful global minerals impact.”

He further said the forum will also witness several debates featuring industry leaders tackling issues such as resource depletion, sustainability, and stakeholder engagement. 

“Future Minerals Forum 2025 is promising to be a catalyst for actionable solutions and transformative change,” said Alkhorayef. 


Saudi Arabia’s annual inflation rate rises by 1.7% in 2024: GASTAT

Updated 5 min 39 sec ago
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Saudi Arabia’s annual inflation rate rises by 1.7% in 2024: GASTAT

  • Inflation rate remained among the lowest in the Middle East and globally,nflation rate remained among the lowest in the Middle East and globally
  • GASTAT highlighted a 0.8 percent year-on-year increase in food and beverage prices in 2024

RIYADH: Saudi Arabia’s annual inflation rate for consumer prices increased by 1.7 percent in 2024 compared to the previous year, driven primarily by higher housing costs, official data revealed. 
According to the General Authority for Statistics, housing rental prices rose by 10.6 percent year on year in 2024, significantly contributing to the overall rise in inflation. Costs for housing, water, electricity, gas, and other fuels collectively increased by 8.8 percent last year compared to 2023. 
Despite the uptick, Saudi Arabia’s inflation rate remained among the lowest in the Middle East and globally, reflecting the Kingdom’s effective measures to ensure economic resilience and mitigate global price pressures. 
The rate also fell short of projections made by the World Bank in October 2024, which had estimated Saudi Arabia’s inflation to remain steady at 2.1 percent last year and 2.3 percent in 2025, both below the Gulf Cooperation Council average. 
In its latest report, GASTAT highlighted a 0.8 percent year-on-year increase in food and beverage prices in 2024. Costs for restaurants and hotels rose by 2 percent, while education expenses increased by 1.3 percent over the same period. 
The report noted declines in several categories. Clothing and footwear prices dropped by 3.4 percent, led by a 5.8 percent decrease in ready-made clothing prices. Similarly, furnishing and household equipment costs fell by 3.4 percent, and transport prices declined by 2.4 percent. 
Prices for entertainment and culture decreased by 1.3 percent, largely due to a 5.9 percent decline in audio-visual equipment prices, further emphasizing the nuanced shifts in consumer price indices across different sectors. 
Annual inflation holds steady in December 
In a separate report, GASTAT noted that Saudi Arabia’s annual inflation rate remained stable at 1.9 percent in December 2024 compared to the same month in 2023. 
Housing rents increased by 10.6 percent yearly in December, with villa rental prices rising by 9.9 percent during the same period. 
“The increase in this section (housing) had a significant impact on the continuation of the annual inflation pace for December 2024 due to the weight formed by this section, which amounted to 25.5 percent,” GASTAT stated. 
Costs for housing, water, electricity, gas, and other fuels rose 8.9 percent compared to the previous year, underscoring the sector’s influence on inflation. Food and beverage prices increased by 0.8 percent year on year in December, driven by a 2.8 percent rise in meat and poultry costs. 
Personal goods and services expenses grew by 2.2 percent in December, influenced by a 20.2 percent surge in jewelry, watches, and precious antiques prices. Education costs also rose by 1.1 percent, primarily due to a 1.8 percent increase in fees for intermediate and secondary education. 
Furnishing and home equipment prices dropped by 2.8 percent in December, while clothing and footwear expenses declined by 2.2 percent. Transportation saw a 2.5 percent decrease year on year, largely attributed to a 3.9 percent reduction in vehicle purchase prices. 


Oil Updates — crude inches up, but uncertainty over sanctions impact caps gains

Updated 15 January 2025
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Oil Updates — crude inches up, but uncertainty over sanctions impact caps gains

SINGAPORE: Oil prices rose on Wednesday trimming losses from the previous day, as the focus turned back to potential supply disruptions from sanctions on Russian tankers, though gains were capped as the market awaited more clarity on their impact.

Brent crude futures edged up 11 cents, or 0.1 percent, to $80.03 a barrel by 8:15 a.m. Saudi time, after dropping 1.4 percent in the previous session. US West Texas Intermediate crude climbed 23 cents, or 0.3 percent, to $77.73 a barrel after a 1.6 percent decline.

Prices slipped on Tuesday after the US Energy Information Administration predicted oil would come under pressure over the next two years as supply would outpace demand.

“The dominant driver has been all about the Russian oil sanctions lately, compounded by a streak of stronger US economic data,” said Yeap Jun Rong, market strategist at IG.

“The key question remains on how much Russian supply will be lost in the global market and whether alternative measures can offset the shortfall,” said Yeap, adding that in the near term oil may give up some of its sharp gains from the past week.

The market also found some support on Wednesday from a drop in crude stockpiles in the US, the world’s biggest oil consumer, reported by the American Petroleum Institute late on Tuesday.

“Oil prices are trading firmer in early morning trading in Asia today after API numbers showed that US crude oil inventories fell more than expected over the last week,” said ING analysts.

The analysts added that while crude oil stocks in the country’s flagship storage hub Cushing, Oklahoma, increased by 600,000 barrels, inventories were still historically low. Cushing in the delivery location for WTI futures contracts.

The API reported US crude oil stocks fell by 2.6 million barrels in the week ended Jan. 10, according to market sources citing the API figures. They added that gasoline inventories rose by 5.4 million barrels while distillate stocks climbed by 4.88 million barrels.

A Reuters poll showed analysts expected US crude oil stockpiles fell by about 1 million barrels in the week to Jan. 10. Stockpile data from the Energy Information Administration, the statistical arm of the US Department of Energy, is due at 6:30 p.m. Saudi time.

On Tuesday, the EIA trimmed its outlook for global demand in 2025 to 104.1 million barrels per day, while expecting supply of oil and liquid fuel to average 104.4 million bpd.

It predicted Brent prices would fall 8 percent to average $74 a barrel in 2025, then fall further to $66 a barrel in 2026, while WTI would average $70 in 2025 and fall to $62 next year.


World Economic Forum adds Aramco facility to its Global Lighthouse Network

Updated 15 January 2025
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World Economic Forum adds Aramco facility to its Global Lighthouse Network

  • The network recognizes industrial sites that use advanced technologies to boost performance, operations and sustainability
  • North Ghawar Oil Producing Complex is the 5th Aramco facility to earn a place in the network

LONDON: The World Economic Forum has added Aramco’s North Ghawar Oil Producing Complex to its prestigious Global Lighthouse Network.

It is the fifth Aramco facility to earn a place in the network. The company said the addition honors its efforts to enhance operational and environmental performance.

Nasir K. Al-Naimi, the company’s upstream president, described the achievement as testament to the company’s focus on innovation and operational excellence.

“It validates our journey towards a truly digital and lower-carbon-emissions future, where technology empowers us to optimize our processes, reduce our environmental impact, and deliver exceptional value to our customers and shareholders.”

The Global Lighthouse Network, established by the forum in 2018 in collaboration with management consultancy McKinsey & Company, recognizes industrial facilities worldwide that have leveraged Fourth Industrial Revolution technologies to achieve measurable improvements in financial performance, operations and sustainability, and reduce environmental impacts.

The Aramco facility was one of 17 industrial sites worldwide added to the network on Tuesday. It now comprises 189 facilities worldwide, and Aramco is the only energy company represented by more than three facilities. The North Ghawar site is located in Al-Ahsa Governorate in the Eastern Province.


Four Seasons Beirut to reopen in 2026 after reconstruction

Updated 14 January 2025
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Four Seasons Beirut to reopen in 2026 after reconstruction

JEDDAH: The Four Seasons Hotel in Beirut is set to reopen in the first quarter of 2026 after undergoing a comprehensive rehabilitation, according to a statement from Kingdom Holding Co.

“On the occasion of a new era for Lebanon, and under the leadership of His Excellency President Joseph Aoun, I am pleased to announce that the Four Seasons Hotel, Beirut, which Kingdom Holding built, will be entirely reconstructed and refurnished by Kingdom Beirut S.A.L and will reopen to the public in Q1 of 2026,” Prince Alwaleed bin Talal, chairman of KHC, wrote on his X account on Tuesday.

Prince Alwaleed further noted that the hotel, located adjacent to Beirut’s Zaitunay Bay marina, would be upgraded to the highest international standards. The revamp is expected to position the property as one of the premier urban resorts worldwide.

The timing of the announcement follows recent diplomatic developments, including a call from Saudi Crown Prince Mohammed bin Salman to congratulate Lebanon’s new president, with an invitation to visit the Kingdom.

The Four Seasons Beirut was severely damaged in the 2020 Beirut Port explosion, which devastated much of downtown Beirut, an area once popular with Gulf tourists.

The region has since been affected by geopolitical tensions, including Hezbollah’s involvement in the Syrian war and its support for Houthis in Yemen.

Four Seasons, one of the world’s leading luxury hotel chains, has been privately owned by KHC and Cascade Investment, the investment vehicle controlled by Bill Gates, since 2007. Both KHC and Cascade own 47.5 percent stakes in the company, with the remaining 5 percent held by Triple Holdings, which represents Four Seasons’ founder, Isadore Sharp, according to KHC’s website.

KHC’s relationship with Four Seasons dates back to 1994, when the company first recognized the brand’s potential and invested in a minority stake through a private equity deal.