Avia Solutions Group to Build the Largest and Most Advanced SAF Factory in Northern Europe

Avia Solutions Group, the world's largest ACMI (Aircraft, Crew, Maintenance, and Insurance) provider, and Latvian partners via joint venture NorSAF, are launching an ambitious project – building the largest sustainable aviation fuel (SAF) plant in Northern Europe in the Liepaja Free Economic Zone, Latvia. The manufactured fuel will be supplied to aviation companies in Northern Europe and exported to other markets around the world.

NorSAF will be the largest SAF production plant in Northern Europe producing approximately 100,000 tons of SAF annually once operations begin in 2030. The scope of the project is estimated at 500-600 million euros, depending on the selected technological solution. As this project will have to compete on a global scale, its successful implementation depends on the aid and support it receives from the European Union, institutional investors and local authorities.

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Often referred to the future of aviation, SAF generates significantly less greenhouse gas emissions than conventional jet fuel. Starting this year, the European Union has implemented a requirement that at least 2% of all fuel consumed at larger airports must be SAF. This mandate will gradually increase, reaching 6% by 2030, 20% by 2035, and 70% by 2050.

Jonas Janukenas, CEO of the Group, emphasizes that the development of the aviation industry itself is now directly linked to new sustainability standards.

"The number of SAF production projects currently planned will likely be insufficient to meet the growing demand for sustainable aviation fuels in the coming years. EU regulations are mandating the increasing use of SAF, which will only ramp up year after year. Once complete, NorSAF will play a crucial role in ensuring that there is enough SAF available to the aviation industry," he says.

The ambitious project is the Group's first foray into the field of aviation fuel production. The Group’s subsidiary Baltic Ground Services was chosen to implement the technological part of the project because of their extensive experience with SAF supply and distribution.

The new facility in Latvia will use PureSAF technology, developed by Swedish Biofuels AB and exclusively licensed via the US engineering firm KBR. This technology has been proven to reduce GHG emissions by up to 93% compared to conventional jet fuels.

"It's important to understand that by 2030, there will be another important condition – 1.2% of all supplied SAF will have to be synthetic. This type of fuel is produced without the use biological components. Instead, green energy is used to produce hydrogen, which is then mixed with carbon dioxide. This mandate will also gradually increase, and by 2050, half of all SAF fuel will have to be synthetic. So, changes in the aviation sector are already happening at full speed," says Vytautas Cekanavicius, CEO of Baltic Ground Services and Board Member of NorSAF.

Using PureSAF technology, NorSAF will be able to produce both SAF and eSAF (a synthetic fuel derived from renewable energy) from bioethanol, hydrogen, and captured CO2. A complete green energy cycle will be a key feature of the completed project. Green electricity will power electrolysis for green hydrogen production, which will then be combined with captured CO₂ and ethanol to create both SAF and eSAF. The use of extracted CO2 in the production of the fuel will be particularly beneficial to the environment.

KBR is undertaking the feasibility study, which is expected to be completed by the second half of 2025. Work on the project is expected to commence shortly after that.

"A large part of the infrastructure we require is already present at the Liepaja Free Economic Zone. It has gas pipelines and railway lines, ethanol transshipment is already taking place here, and there are plans for a green hydrogen plant. Currently, negotiations are also underway with one large company from which we would purchase carbon dioxide and use part of it for synthetic SAF production," explains Vytautas Cekanavicius, Board Member of NorSAF.

Janis Kisiels, Board Member of NorSAF, is confident that the results of the feasibility study done by KBR will enable the start of work on the project this year, with the aim of being operational by 2030.

"This plant is a very good example of how companies from the region, working together, can implement large and truly ambitious projects contributing to aviation’s green transition. We aim to produce much more SAF fuel than will be needed for the entire Baltic countries' market, so we intend to export the majority of our produced SAF," he says.

It is estimated that the new Liepaja plant will produce 100,000 tons of SAF annually. For comparison, at the moment approximately 400,000 tons of aviation fuel are consumed across airports in the three Baltic states. According to the current 2% EU mandate, the local market now needs only about 8,000 tons of SAF.

"We are working with potential suppliers, partners, investors, and EU institutions. Our plan and ambition is to start break ground in 2027, and to be producing SAF fuel by 2030. The scope is enormous, but we believe that our efforts will bring tangible results and will significantly impact the sustainability of the aviation industry," says Vytautas Cekanavicius, Board Member of NorSAF.