Saldanha Bay eSAF Project Could Position South Africa as a Future Aviation Fuel Hub

As airlines around the world face mounting pressure to reduce carbon emissions, South Africa is preparing to enter the rapidly emerging sustainable aviation fuel (SAF) market with what could become one of the world's first commercial-scale electro-sustainable aviation fuel (eSAF) production facilities.

Energy company Phelan Green has announced that its clean fuels subsidiary, Phelan eFuels, will use Honeywell's Fischer-Tropsch (FT) Unicracking technology at its planned eSAF facility in Saldanha Bay, Western Cape. Construction of the facility is expected to begin during the fourth quarter of 2026.

For the aviation industry, the announcement represents far more than another green energy project. It signals South Africa's intention to become a significant supplier of next-generation aviation fuels at a time when global demand is expected to increase dramatically.

The facility will employ Honeywell UOP's FT Unicracking process, converting Fischer-Tropsch liquids and waxes derived from captured carbon dioxide into aviation fuel that meets international jet fuel specifications. Unlike conventional SAF, which is primarily produced from waste oils, agricultural residues and other biological feedstocks, eSAF is produced using renewable electricity, green hydrogen and captured carbon dioxide, offering one of the lowest-carbon pathways currently available for aviation fuel production.

Once operational, the Saldanha Bay plant is expected to produce more than 140,000 tonnes of eSAF annually, with much of the output destined for airlines operating in the European Union and the United Kingdom. These markets are introducing increasingly stringent SAF blending mandates as part of broader aviation decarbonisation strategies.

The timing is significant. European airlines are already facing requirements to incorporate increasing percentages of sustainable aviation fuel into their operations, while aircraft manufacturers, airport operators and regulators continue to identify SAF as the most practical near-term solution for reducing aviation emissions without requiring major changes to aircraft or airport infrastructure.

Unlike hydrogen-powered or electric aircraft, which remain years away from widespread commercial adoption, SAF can be used in existing turbine engines and fuel systems with minimal modification. This makes it a critical component of the aviation industry's pathway toward achieving net-zero carbon emissions by 2050.

For South Africa, the project could create opportunities that extend well beyond fuel production. The country possesses some of the world's best solar and wind resources, a key requirement for producing green hydrogen and, ultimately, eSAF. Combined with established port infrastructure at Saldanha Bay and access to international shipping routes, these advantages could position South Africa as a competitive exporter of sustainable aviation fuels.

The project forms part of the broader R47-billion Phelan Green Hydrogen Project, which has been designated by the government as a strategic green industrial development initiative. Beyond supporting aviation's environmental goals, the development has the potential to stimulate investment, create skilled jobs and establish a new industrial sector focused on advanced fuel production.

Phelan Green Chairperson Paschal Phelan described the technology selection as a major milestone for both the company and South Africa's emerging e-fuels industry. Honeywell UOP President Rajesh Gattupalli noted that the company's FT Unicracking technology offers a scalable and proven pathway for commercial SAF production.

For airlines operating in Southern Africa, the long-term implications could be substantial. While the initial production is earmarked primarily for export markets, the establishment of local eSAF production capacity could eventually support regional carriers seeking to meet future emissions targets and sustainability commitments.

The aviation industry has long identified SAF availability as one of the biggest obstacles to large-scale adoption. Global production remains a fraction of projected future demand, and significant investment in new facilities will be required worldwide. If the Saldanha Bay project progresses as planned, South Africa could find itself at the forefront of a new aviation fuel industry, supplying airlines with one of the key tools needed to achieve a more sustainable future.