Partnerships win at SAF Investor and Ryder Cup
Only Sarah Merians has permition in this image
The Ryder Cup, the biennial Europe versus US tournament, is the highest calibre team event you can win in golf. Europe’s 15-13 victory at Bethpage Black, New York, was achieved through teamwork and no small amount of persistence.
These were themes also highlighted throughout the first SAF Investor New York conference. More than 160 senior leaders in Sustainable Aviation Fuel (SAF) fought the traffic of Climate Week and the UN General Assembly to discuss the critical challenges around financing SAF projects in the US.
Similar to the Ryder Cup teams, SAF project partnerships, no matter the length, are like marriages for the full duration – stressed Jim Stonecipher, principal, EdyMac.
Often though SAF partnerships, unlike the Ryder Cup, last longer than a week. Stephane Thion, vice president, commercial, LanzaJet, called it a “game of patience”.
“Technology developed 15 years ago takes time to scale,” continued Thion.
This patience and partnership is especially important when certifying new technologies, developing a risk registry for each project area is crucial, Steve Toon, chief operations officer, BioVeritas, told audience members.
“Surround yourself with people that will tell you the truth, and not people that will flatter you … your risk register should scare you everyday,” said Toon. “It is hard to expose the risks to investors and ask them for investment, but if they are an investor worth the investment, they will understand that and respect you for it.”
Ensuring companies work with partners to find an optimal position to attract financing was highlighted in the Life or Debt of Project Finance panel.
“A full EPC [engineering, procurement and construction] wrap is going to help with bankability, but EPCs are less willing to provide full wraps right now,” said Michael Openlander, managing director, Moelis and Company.
In order to mitigate this producers need strong conservative contingency planning to secure capital for cost overruns, especially in the recent backdrop of supply chain challenges and high inflation. To give confidence to the debt capital providers that there is protection against cost overruns, producers need to ensure they are as capitalised as possible on the equity side. This is a crucial strategy to seeking project investment, surmised Openlander.
US tariffs on copper and steel in the US could further see construction costs rising. Something highlighted by Kenneth Hill, MD, BioCarbon Strategies, as he took a deep dive into the consequences for SAF from President Trump’s One Big Beautiful Bill.
Partnerships on the demand side are just as critical. Just under half the attendees found this to be the biggest challenge for SAF start ups. Working with offtakers is crucial. Developing the right narrative and showing the value creates strong partnerships that lead to bankable offtakes.
“They [airlines] have to feel like they are getting something back,” said Natasha Mann, founder, Future Energy Global.
The importance of honest partnerships was a recurrent theme across the conference for ensuring success in scaling SAF production. Leveraging expertise across the technology, offtake, construction and financing of projects is vital and continued collaboration is key to the industry scaling.
The Ryder Cup heads back over the pond to Adare Manor, Ireland, in 2027. The US team will be looking for their first away win in the competition for 34 years. Those in SAF do not have to wait so long as SAF Investor London will be returning in February 2026.
Thank you to all the sponsors, speakers and attendees for making SAF Investor New York so successful. Look forward to seeing many of you in London in a few months.
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