McDermott has secured a master services agreement (MSA) from Willis Sustainable Fuels Limited (WSFL) to support the development of UK-based sustainable aviation fuel (SAF) facilities.
Initially, the contract will focus on the early engineering phase of a Teesside-based plant, which will have capacity to produce 50,000 litres of SAF per day.
To produce its SAF, WSFL will use either biogas-to-liquid or power-to-liquid technologies. The decision depends on the available and selected feedstock.
The intent is for the parties to enter a sole-source negotiation of the EPC scope in 2025.
Additionally, the contract will include early engineering, procurement, and construction (EPC)-related services for additional sites in the UK. McDermott will be supported by its construction partner Bilfinger UK.
Rob Shaul, Senior Vice-President of McDermott’s Low Carbon Solutions business, said, “We are well positioned to offer WSFL a self-perform EPC model via our strategic relationship with Bilfinger UK, which is expected to further reduce risk and drive cost optimisations.”
Earlier this year, the UK government unveiled the SAF mandate to support sustainable aviation fuel production.
The SAF mandate will start in 2025 at 2% of total UK jet fuel demand, increase on a linear basis to 10% in 2030 and then to 22% in 2040. From 2040, the obligation will remain at 22% until there is greater certainty regarding SAF supply.
It is hoped that this will drive demand for SAF in the UK and deliver emission reductions up to 2.7 MtCO2e in 2030 and up to 6.3 MtCO2e in 2040.
According to the UK government, SAF fuel production is estimated to add over £1.8bn to the economy and over 10,000 jobs across the country while supporting decarbonisation.
Amy Ruddock, Senior Vice-President, Sustainable Aviation and Corporate Development at Willis Lease Finance Corporation, WSFL’s parent company, described the contract as a key milestone in decarbonising the aviation industry.
“This collaboration underscores our commitment to working with industry leaders who share our vision for a cleaner, more sustainable future.”
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