South Africa is moving closer to producing sustainable aviation fuel (SAF) following the signing of an agreement for a key component of a planned production facility in Saldanha Bay.
Phelan Green Group and Sungrow Hydrogen have signed a supply agreement for a 200MW electrolyser, which will be deployed at the group’s flagship electro-SAF (eSAF) production project at Saldanha Bay. Construction is scheduled to begin in September 2026.
The project is being developed to produce eSAF using renewable electricity while meeting the European sustainability requirements.
The move comes as part of a broader strategy to supply the European market where regulations are driving increased demand for lower-carbon aviation fuels. Fuel suppliers serving the European aviation industry are required to blend increasing volumes of lower-carbon aviation fuel into conventional jet fuel, or face significant financial penalties for non-compliance.
“It is expected that the Saldanha Bay eSAF project will produce 35 000 tonnes of eSAF for export to EU and other regulated markets per year,” said Blair Phelan, MD of Phelan Green Group.
