South Africa has moved closer to becoming a supplier of low-carbon aviation fuel after Phelan Green Hydrogen secured key technology licences for its planned electro-sustainable aviation fuel (eSAF), a synthetic aviation fuel produced using renewable electricity, hydrogen and captured carbon dioxide, facility in the Western Cape, according to a June 19 statement from Johnson Matthey.
The agreement will provide the technology platform for the project’s first phase, which is expected to begin construction in Saldanha Bay by the end of 2026.
The project highlights South Africa’s ambitions to become a major exporter of green hydrogen-derived fuels as airlines face mounting pressure to reduce emissions. If completed, the facility could supply a meaningful share of Europe’s future sustainable aviation fuel demand while positioning Saldanha Bay as a strategic clean-energy export hub.
The planned facility forms part of the wider Phelan Green Hydrogen Project, which is expected to attract around R47bn ($2.6bn) in investment and position South Africa as a significant player in the emerging global market for sustainable aviation fuels.
Project targets European aviation market
According to Johnson Matthey, the first phase of the development is expected to produce around 35,000 tonnes of eSAF annually. The fuel will primarily be sold into European markets as airlines and fuel suppliers seek to meet increasingly stringent emissions requirements.
The company estimates that the facility could eventually supply up to six percent of the EU and UK’s mandated eSAF demand by 2030.
Once all planned phases are completed, annual production capacity is expected to rise to approximately 140,000 tonnes.
The project reflects growing interest in South Africa’s renewable energy resources and strategic location as global aviation seeks alternatives to conventional fossil-based jet fuel.
Europe drives demand for sustainable fuel
Demand for sustainable aviation fuel is expected to rise sharply as the EU and UK introduce blending mandates requiring airlines and fuel suppliers to use increasing volumes of lower-emission alternatives.
Industry forecasts suggest these regulations will drive significant investment in new production facilities over the coming decade as airlines seek ways to reduce their carbon footprint while continuing to operate long-haul routes.
The Saldanha Bay project is among a growing number of developments globally seeking to meet that demand through the production of synthetic fuels derived from renewable energy.
Facility aims to convert green hydrogen into aviation fuel
Unlike conventional jet fuel, which is refined from crude oil, eSAF is produced using renewable electricity, water and captured carbon dioxide.
Under the planned process, renewable energy is used to produce green hydrogen from water. The hydrogen is then combined with captured carbon dioxide and converted into a synthetic fuel suitable for use in existing aircraft engines.
Industry proponents view eSAF as one of the most promising pathways for reducing aviation emissions, particularly on long-haul routes where electrification remains challenging.
Johnson Matthey technology to underpin project
According to Johnson Matthey, the project will use its HyCOgen technology, which converts captured carbon dioxide and green hydrogen into carbon monoxide before producing synthesis gas, or syngas.
The syngas is then processed using FT CANS technology, jointly developed and co-owned by Johnson Matthey and bp, to create synthetic crude oil. That crude oil is subsequently upgraded into synthetic paraffinic kerosene, a sustainable aviation fuel component.
Alberto Giovanzana, Chief Executive Officer of Johnson Matthey Catalyst Technologies, described the development as a milestone for both the company and the wider sustainable aviation sector.
‘Phelan Green’s plans for an eSAF facility in the Western Cape are a landmark project. It will be one of the world’s first commercial-scale eSAF facilities and a clear signal that SAF can scale today,’ he said in the statement.
He added that the project would mark Johnson Matthey’s first deployment of its HyCOgen and FT CANS technologies in Africa.
Saldanha Bay emerges as green energy hub
Saldanha Bay, located on South Africa’s west coast, is emerging as one of the country’s key green hydrogen development zones because of its port infrastructure, industrial base and strong renewable energy potential.
The development aligns with South Africa’s broader ambitions to establish itself as a major green hydrogen producer and exporter.
The country’s abundant wind and solar resources, coupled with established industrial infrastructure and deep-water port facilities, have attracted growing interest from developers seeking locations for large-scale green fuel projects.
For Phelan Green Group, the technology agreements represent a significant milestone as the project advances towards construction.
Managing Director Blair Phelan said the licensing agreements completed the technological foundation needed for the development.
‘We are now ready to turn renewable energy, CO₂ and water into sustainable aviation fuel, and to prove that eSAF can be produced at commercial scale, here in South Africa,’ he said in the statement.
If completed as planned, the Saldanha Bay development could become one of the world’s first commercial-scale eSAF facilities and reinforce Africa’s growing role in the global energy transition.
