Colombia’s state-owned energy company, Ecopetrol (ECO.CN), has announced plans to invest between $500 million and $700 million in constructing a new Sustainable Aviation Fuel (SAF) production plant. This move marks a significant step toward advancing cleaner energy alternatives in the aviation sector. The company’s president, Ricardo Roa, disclosed the plans on Wednesday, emphasizing Ecopetrol’s commitment to sustainability and energy transition.

The SAF plant will be built at the Barrancabermeja refinery, one of Colombia’s key refining hubs. The project is expected to enter its development phase between late 2024 and early 2025. Roa stated that the plant is projected to begin operations by 2030, with an estimated production capacity of approximately 6,000 barrels of SAF per day. This development aligns with the global push for sustainable aviation solutions as the industry seeks to reduce its carbon footprint and dependency on conventional fossil fuels.

Sustainable Aviation Fuel is considered a crucial alternative to traditional jet fuel, as it significantly lowers greenhouse gas emissions. The production of SAF involves the use of renewable resources such as agricultural waste, used cooking oil, and other bio-based feedstocks. By investing in this technology, Ecopetrol aims to support Colombia’s broader sustainability goals while also contributing to global efforts in mitigating climate change.

The company has allocated an overall investment budget of $5.9 billion to $6.8 billion for 2024. A significant portion of this funding will be directed toward projects that align with energy transition strategies, including the SAF initiative. Ecopetrol plans to finance these investments primarily through its own cash reserves, which stood at $4.4 billion at the end of 2024.

Ecopetrol’s investment in SAF production positions Colombia as a key player in the development of alternative aviation fuels in Latin America. With increasing global demand for cleaner fuel options, the new plant could open opportunities for both domestic use and potential exports in the future. Additionally, the project aligns with international aviation policies that aim to achieve net-zero emissions by 2050.

By taking this initiative, Ecopetrol is not only reinforcing its role as a leader in Colombia’s energy sector but also demonstrating its commitment to adopting sustainable practices that align with the evolving demands of the global energy market. The company’s efforts in SAF production could pave the way for further advancements in clean energy projects, contributing to both economic growth and environmental responsibility.