KeyState Energy, CNX Resources Corp., and Pittsburgh International Airport (PIT) have announced a collaboration to establish a sustainable aviation fuel (SAF) and hydrogen production hub at PIT.
This project aims to produce up to 68,000 metric tonnes of hydrogen annually or 70 million gallons of SAF. The facility will offer the flexibility to produce both fuels simultaneously at varying volumes to meet specific demands.
The proposed facility is ambitious, with an estimated investment of $1.5 billion. This project hinges on securing tax credits under the 45V Hydrogen Production Tax Credit from the U.S. Department of Treasury. These tax credits are crucial for making the project economically viable. The partners claim the facility will support 3,000 direct construction jobs during its development phase and contribute significantly to local employment and the economy.
While the project’s scale is impressive, it is essential to compare it against industry benchmarks. For instance, the global leader in SAF production, Neste, aims to produce 1.5 million tonnes of SAF annually by 2025. In comparison, the proposed 70 million gallons (approximately 265,000 tonnes) per year from PIT’s facility is modest. Furthermore, achieving cost parity with conventional jet fuel remains a significant challenge for the SAF industry.
KeyState and CNX have signed a letter of intent to advance the project, and they are exploring various market targets for the produced hydrogen and SAF. Potential uses include aviation, local heavy trucks and equipment, and power generation. The collaboration with Pittsburgh International Airport aims to position the region as a leader in hydrogen and SAF production.
The project’s proponents highlight its potential to significantly reduce lifecycle carbon emissions from aviation, a sector that currently contributes about 2-3% of global CO2 emissions. Mixing just 10% SAF with conventional jet fuel can substantially cut emissions from flights. However, the production of SAF still faces scalability and cost challenges.
While the project promises environmental benefits, such as reduced emissions and improved energy security, it also faces significant economic and technical hurdles. The reliance on ultra-low carbon intensity feedstocks, such as coal mine methane, adds a layer of complexity. Ensuring the long-term availability and sustainability of these feedstocks will be crucial for the project’s success.
The project has garnered support from various stakeholders, including local government officials and labor unions. Pennsylvania Governor Josh Shapiro and U.S. Senator Bob Casey have praised the project’s potential to create jobs and reduce emissions. However, it remains to be seen whether the project can deliver on these promises given the inherent risks and challenges in large-scale hydrogen and SAF production.
The project’s success depends on several factors, including the availability of federal tax credits, the development of necessary infrastructure, market acceptance of SAF and hydrogen, and overcoming technical challenges in production and distribution. While the collaboration between KeyState Energy, CNX Resources, and PIT represents a significant step forward, it must be critically evaluated against these benchmarks.
