New York, NY — December 4, 2024 — Satarem America proudly unveils its ambitious sustainable aviation fuel (SAF) project in collaboration with Ethiopian Airlines, marking a significant milestone in eco-friendly fuel advancement within the African aviation sector. As the company continues to drive innovations across various energy-dependent industries, this latest venture solidifies its commitment to reducing carbon footprints and overcoming environmental challenges.
Pioneering sustainable aviation in Africa
Headquartered in New York and established in 1992, Satarem America is an esteemed engineering leader specialising in the cement, oil and gas, waste-to-energy, and renewable sectors. Under the leadership of CEO Jerome Friller, the company has announced its latest initiative to produce 100 million liters of sustainable aviation fuel annually, specifically catering to Ethiopian Airlines and other operators at Addis Ababa Airport. This initiative is timely, given the aviation sector’s global mandate to replace 70% of conventional jet fuel with sustainable alternatives by 2050.
A Strategic alliance with Ethiopian Airlines
“Ethiopian Airlines stands as the continent’s largest and most expansive aviation company, making them an ideal partner for this pioneering energy initiative,” stated Jerome Friller. The partnership represents a synergy that promises significant environmental and economic benefits, a sentiment echoed by stakeholders across the region. Friller continued, “With our engineering expertise and the airline’s vast operational network, we aim to set a benchmark for sustainable aviation fuel use in Africa.”
Innovative agricultural practices bolstering local economy
The project leverages underutilised land in the Afar region, approximately 300 kilometers from Addis Ababa—a location selected based on logistics advantages and the availability of degraded land suitable for cassava cultivation.
Friller highlighted, “Cassava is not only a quick-growing crop that thrives on minimal water but also does not compete with local food resources, thereby perfectly suited for the type of agricultural land we have in Ethiopia.”
In conjunction with promoting sustainable energy, Satarem America is committed to supporting local economies through employment and training. The initiative plans to employ modern agricultural practices to regenerate the soil, focusing on no pesticides and minimal water use. “We are employing an inclusive hiring strategy—50% women, 50% men, with a significant representation of youth aged 18 to 35—ensuring that local communities benefit directly from this project,” added Friller.
Navigating financial and political challenges
Despite the project’s promising scope, Satarem America faces challenges in securing approximately $120 million in equity. The firm is currently seeking a co-equity partner to further this endeavor. Friller explained, “We have made significant progress with the debt portion, having selected the Eastern and Southern African Trade and Development Bank as our lead arranger. Still, there remains work to be done on the equity front.”
Additionally, Satarem is actively tackling the hurdles of political risk and financial insurance. “The economic landscape in Ethiopia presents unique challenges, such as currency exchange limitations. However, our strong client relationship with Ethiopian Airlines, which can transact in US dollars, provides a crucial advantage,” noted Friller. The firm is consulting with various insurers to cover political risks, affirming their faith in Ethiopia’s economic future.
As global demand for sustainable fuels continues to surge, doubling annually, Satarem America’s SAF project aligns perfectly with these growth trends. The initiative not only contributes to environmental goals but also strengthens agriculture-linked synergies in Ethiopia, thereby reinforcing the nation’s economic fabric.
“This project is a cornerstone of Satarem America’s broader vision to advance sustainable energy solutions and foster socio-economic development within host countries. We strongly believe in the potential of Ethiopia to lead in this field and look forward to contributing positively to the country’s sustainability trajectory,” stated Friller.
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