African Development Bank Partners Japanese Firm on Green Aviation Fuel Push

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Afdb
African Development Bank (AfDB)

Africa’s aviation industry could soon be producing its own sustainable fuel rather than relying entirely on imported jet fuel, following a new partnership between the African Development Bank (AfDB) and a major Japanese engineering company. The collaboration, announced Friday, aims to develop production capacity for sustainable aviation fuel across the continent while advancing climate goals and reducing dependence on fossil fuel imports.

The AfDB and JGC Corporation signed a Letter of Intent on August 21 in Yokohama during the Ninth Tokyo International Conference on African Development (TICAD9), establishing a framework for cooperation on green aviation projects. The timing reflects growing global momentum toward cleaner aviation fuels as airlines and governments seek ways to reduce the sector’s substantial carbon footprint.

Under the agreement, both organizations will share technical information, conduct demand assessments and feasibility studies, and explore opportunities to co finance sustainable aviation fuel projects across Africa. For the AfDB, the partnership fits within its broader sustainable transport and energy transition strategy, which increasingly targets sectors with high emissions and significant economic impact.

“Adopting Sustainable Aviation Fuel in Africa is a crucial component of the journey to cutting the continent’s carbon dioxide emissions,” said Solomon Quaynor, the bank’s Vice President for Private Sector, Infrastructure and Industrialization. “Moreover, it should boost the competitiveness of the sector over time.”

His emphasis on competitiveness highlights an economic dimension beyond environmental benefits. Airlines operating in Africa currently purchase conventional jet fuel at prices determined by global oil markets and supply chain logistics that favor established aviation hubs. Developing domestic sustainable aviation fuel production could eventually provide cost advantages while creating new industries and employment opportunities.

JGC Corporation, founded in 1928 and headquartered in Yokohama, brings substantial engineering expertise to the partnership. The company has expanded beyond traditional plant engineering into renewable energy and sustainable fuels in recent years, positioning itself to help African countries adapt technologies that have been tested in other markets to local conditions and feedstock availability.

“We are proud to collaborate with the African Development Bank in advancing Sustainable Aviation Fuel in Africa,” said Shoji Yamada, JGC’s President. “By leveraging our experience in plant engineering and sustainable energy, we aim to contribute to Africa’s decarbonization efforts while fostering local economic growth and innovation.”

The company’s role will include conducting demand assessments that determine how much sustainable aviation fuel African airlines and airports could realistically consume, performing technical feasibility studies to identify promising production locations and technologies, and exploring how Japanese sustainable aviation fuel systems might need modification to work effectively in African contexts.

The AfDB, meanwhile, will coordinate with public sector aviation stakeholders including national airlines, airport authorities, and transportation ministries. The bank plans to identify potential project pipelines, develop financing options that could make projects viable for private investors, and promote partnerships around sustainable aviation initiatives throughout its 41 African member countries.

Sustainable aviation fuel represents a category of jet fuel derived from renewable sources rather than petroleum. Common feedstocks include plant oils, agricultural waste materials, municipal solid waste, and even carbon captured from industrial processes. When produced and used properly, these fuels can reduce lifecycle carbon emissions by up to 80 percent compared to conventional jet fuel, according to industry assessments.

The fuel isn’t entirely new. Airlines globally have been testing and using sustainable aviation fuel in limited quantities for years, often blending small percentages with conventional fuel. What’s changing is the scale of production and adoption as governments implement climate policies and airlines respond to pressure from customers and investors to reduce emissions.

For Africa, entering the sustainable aviation fuel market presents both opportunities and challenges. The continent has abundant agricultural resources and waste streams that could serve as feedstock for fuel production. Many African countries also have significant solar energy potential that could power production facilities, creating genuinely low carbon fuel production chains.

However, building sustainable aviation fuel production capacity requires substantial upfront investment in specialized facilities and supply chain infrastructure. The technology, while proven, remains more expensive than conventional refining in most contexts. And African countries would need to develop regulatory frameworks governing fuel quality standards, sustainability certifications, and integration with existing aviation fuel supply systems.

The partnership announcement comes as global aviation confronts its climate impact. The sector accounts for roughly 2 to 3 percent of global carbon dioxide emissions, a share that’s been growing as air travel expands faster than efficiency improvements can offset. Unlike some industries where electrification offers a clear pathway to decarbonization, aviation faces significant technical hurdles in moving away from liquid fuels, particularly for long haul flights.

Sustainable aviation fuel has emerged as the most immediately viable option for reducing aviation emissions while existing aircraft continue operating. The fuel works in current engines without modification, unlike hydrogen or battery electric propulsion systems that would require entirely new aircraft designs.

For African nations, the economic calculus around sustainable aviation fuel development includes multiple factors beyond direct production costs. Countries currently spend significant foreign exchange importing jet fuel. Domestic production could improve trade balances while creating skilled manufacturing jobs. The agricultural and waste management sectors might find new revenue streams by supplying feedstock to fuel producers.

There’s also a competitive dimension. If sustainable aviation fuel production scales up in other regions while Africa remains dependent on imports, African airlines could face cost disadvantages as carbon pricing mechanisms and sustainability requirements proliferate. Developing domestic capacity now could position the continent advantageously for future market conditions.

The AfDB has been actively financing infrastructure and industrial projects across Africa, operating as the continent’s premier development finance institution with support for initiatives in 54 regional member states. Its involvement in sustainable aviation fuel development reflects a strategic bet that the sector offers genuine development potential rather than just environmental benefits.

Whether this partnership generates significant on the ground projects remains to be seen. Memoranda of understanding and letters of intent are common in development finance, sometimes leading to substantial initiatives but other times failing to advance beyond preliminary studies. Success will likely depend on identifying specific countries with favorable conditions for initial projects, securing adequate financing, and navigating regulatory complexities.

What’s clear is that both organizations see opportunity in Africa’s potential role in the emerging sustainable aviation fuel industry. As Quaynor suggested, the partnership could “unlock new opportunities for green aviation and position Africa as a pacesetter in the sector.” Whether that optimistic vision materializes will depend on execution in the months and years ahead, but the framework for collaboration is now established.

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