Canadian developer SAF+ International Group (SAF+ IG) is planning to produce synthetic aviation fuel (e-SAF) at a first commercial-scale plant, at Port-la-Nouvelle in southern France, following completion of a demonstration project in Montreal. The company is open to sourcing renewable hydrogen and carbon from non-conventional sources to ensure a cost-competitive final product. Argus spoke to chief executive Pierre Gonthier about the company's strategy, investment in the French plant, and the market outlook. Edited highlights below:
What is SAF+ IG's background and why are you focusing on e-SAF production?
SAF+ International Group was founded in Canada in 2019. We received seed funding through a programme run by Natural Resources Canada, which aimed to demonstrate both the technical and commercial viability of SAF production. We were one of five selected finalists, each pursuing different SAF pathways — some companies would focus on production from waste, others from forestry residues. From the outset, we decided to focus exclusively on e-SAF. We had access to carbon capture facilities in Quebec and identified production of synthetic kerosene as one of the most promising uses of captured CO2. In 2021, we built and operated a pilot plant in Montreal, successfully producing synthetic kerosene. Our view is that e-SAF represents the long-term future of aviation decarbonisation. While bio-based SAF pathways are important, there will not be enough sustainable biomass feedstock available to decarbonise aviation at scale.
With the first commercial plant, is Europe your main target market?
Our original plan was to build our first commercial plant in Quebec because the province had abundant hydroelectricity and significant power surpluses. However, provincial policy shifted toward using those surpluses to attract investment in other industries rather than prioritising industrial decarbonisation. As a result, we began looking more closely at Europe in 2022, as the ReFuelEU Aviation framework was taking shape. We established a French subsidiary in 2023 and have since focused on identifying a suitable site for our first commercial-scale project. Earlier this year, we selected a site in Port-la-Nouvelle and signed a land reservation agreement. We already had technology agreements in place with Topsoe and Sasol, and are now preparing to move into front-end engineering design (Feed) studies.
SAF+ IG is collaborating with direct ocean capture firm Captura andsubsurface hydrogen company Vema. What drives you to pursue these partnerships?
We deliberately chose to focus on the fuel-conversion process rather than hydrogen production, renewable power generation, or carbon capture itself. That means we are technology-agnostic when sourcing CO2 and hydrogen. We will consider any solution capable of delivering the required volumes at the right price and in compliance with regulatory requirements. Many competing developers originate from the renewable energy or hydrogen sectors, which can limit flexibility because they are tied to specific technologies or assets. Our approach allows us to select the most competitive combination of feedstock suppliers and technologies for each project. The Port-la-Nouvelle site illustrates this strategy well. It is a major logistics hub with access to maritime transport, pipelines and rail infrastructure, providing multiple options for future hydrogen and CO2 supply chains.
Can you provide more details on the Port-la-Nouvelle plans?
We are working with an investment firm on a series A fundraising round to finance the Feed studies. We expect investor syndication to begin shortly, and we have already seen strong interest from potential investors. The project will occupy around 10 hectares and resemble a conventional petrochemicals facility in terms of engineering complexity. It will include reactors, pressure vessels, piping, electrical systems and process-control equipment. We estimate production of around 75,000 t/yr. Based on current engineering work, we estimate capital expenditure at around €700mn. But at this stage, the estimate carries a margin of error of roughly 30pc. The Feed studies will provide a much more precise assessment.
Does the project include on-site hydrogen production?
Not necessarily. We plan to source hydrogen externally and have it delivered to the plant. Hydrogen can be produced in different areas, and could be delivered by sea, or carried in a pipeline. From our perspective, suppliers need to provide hydrogen ‘over the fence' in a suitable condition for use in our facility. The key requirement is that the hydrogen complies with EU renewable fuels of non-biological origin (RFNBOs) and revised renewable energy directive criteria. And it is important that it is at a price that allows us to be competitive in the e-SAF market.
Which e-SAF production pathway are you pursuing?
We are focused on the Fischer-Tropsch synthetic paraffinic kerosene (FT-SPK) pathway. We do not pursue methanol-to-jet or ethanol-to-jet pathways because we believe FT-SPK is currently the most mature and efficient route in terms of energy use and hydrogen consumption.
What are the main challenges facing e-SAF developers today?
The biggest challenge is reaching a final investment decision. Developers must convince investors to commit substantial capital to large, first-of-a-kind facilities. Investors need confidence that feedstocks will be available, demand will exist, and that the final product can be sold profitably over the long term. The market remains cautious. Various support mechanisms are being discussed, including the EU's proposed double-auction system, but developers still face uncertainty regarding policy stability and project economics. Long term, bankable offtake agreements are critical because these facilities require investment horizons of 10 to 15 years. While being a first mover presents opportunities, it also means carrying a large portion of the technology and market risk.
What is your market outlook for the coming years?
I see 2027 as a pivotal year. By then, the policy framework and market support mechanisms need to be sufficiently developed to allow projects to move forward. By 2030, when mandates begin taking effect under ReFuelEU Aviation, operational e-SAF plants will need to be supplying the market. Otherwise, airlines and airports will face compliance requirements without having adequate fuel available.
What is the opportunity for newer companies like SAF+ IG in the SAF space?
One interesting aspect of this market is that many major oil companies have not yet aggressively pursued SAF or e-SAF development. Their absence has created opportunities for smaller, innovative companies like ours. At the same time, it raises an important question about why large, well-capitalised refiners have chosen not to move more aggressively into greenfield e-SAF projects. One reason may be that traditional refiners are focused on extending the value of existing assets rather than building entirely new facilities. Co-processing offers an attractive option because existing refineries can be modified to produce SAF with relatively modest investment, compared with constructing dedicated e-SAF plants.
