In Colombia, state owned energy company Ecopetrol and Germany’s development agency GIZ have launched a two year feasibility study for a pilot power to liquid facility that could produce electro sustainable aviation fuel at the Cartagena refinery, signaling growing international interest in Latin America as a future supplier of synthetic fuels.

The partners will conduct engineering and technical assessments over the next 24 months to evaluate construction of the proposed e sustainable aviation fuel, or e SAF, plant. The project would build on infrastructure already under development through Ecopetrol’s Coral initiative, which is expected to produce up to 800 metric tons of green hydrogen annually once operational.

The Coral project includes a 5 MW electrolyzer powered by an existing 22 MW solar photovoltaic plant at the Cartagena refinery. Initially, the renewable hydrogen is intended to replace part of the refinery’s current gray hydrogen consumption, reducing emissions associated with fuel production. The proposed e SAF facility would represent the next stage of development by converting green hydrogen into synthetic aviation fuel through power to liquid technology.

Unlike conventional sustainable aviation fuels produced from waste oils or biomass, e SAF is synthesized by combining renewable hydrogen with captured carbon dioxide. The resulting hydrocarbon fuel is chemically similar to conventional jet fuel and can be used within existing aircraft and airport infrastructure. However, commercial deployment remains limited because production costs remain substantially higher than both fossil jet fuel and most bio based SAF pathways.

The collaboration reflects Germany’s broader strategy to secure future supplies of renewable hydrogen and hydrogen derived products from international partners. Berlin has increasingly supported overseas hydrogen development through technical cooperation and financing programs, recognizing that domestic renewable resources alone are unlikely to satisfy future industrial and transport demand. Earlier versions of Germany’s National Hydrogen Strategy anticipated that up to 70 percent of hydrogen demand by 2030 could be met through imports, placing strategic importance on partnerships with resource rich countries.

Under the agreement, GIZ will provide technical expertise in hydrogen and power to X technologies, while Germany’s federal PtX funding program will support the feasibility studies. The objective extends beyond evaluating engineering requirements to reducing technical and commercial uncertainty before potential investment decisions.

For Ecopetrol, the project aligns with a broader strategy to diversify beyond conventional hydrocarbons while leveraging existing refining infrastructure. The company has outlined plans to develop green, blue, and naturally occurring white hydrogen as part of its long term objective to reduce Scope 1, Scope 2, and Scope 3 emissions by 50 percent by 2050.

The Cartagena refinery already serves as Ecopetrol’s principal hydrogen demonstration site. A smaller pilot project currently produces green hydrogen that has been used to fuel a local bus fleet, providing operational experience with electrolyzer technology before larger industrial deployment.

Colombia possesses several structural advantages that could support future synthetic fuel production. Strong solar and wind resources, access to Caribbean and Pacific shipping routes, and established refining infrastructure provide conditions favorable for renewable hydrogen development. At the same time, the country faces challenges common to emerging hydrogen markets, including scaling renewable electricity generation, reducing electrolyzer costs, developing carbon capture supply chains, and securing long term buyers willing to pay a premium for synthetic aviation fuels.

Market conditions continue to illustrate the economic hurdles facing e SAF commercialization. Price assessments by Platts, part of S&P Global Commodity Insights, show sustainable aviation fuel trading at a substantial premium to conventional jet fuel, reflecting high production costs and limited commercial supply. While regulatory mandates in Europe and other regions are expected to increase demand for low carbon aviation fuels over the coming decade, widespread adoption will depend on narrowing the cost gap through larger production facilities, technological improvements, and supportive policy frameworks.

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