Sustainable aviation fuel (SAF): Can Latvia become a manufacturing hub?
Latvia has credible prerequisites to become a Sustainable Aviation Fuel (SAF) producer—not only a consumer—supported by existing logistics infrastructure, emerging projects, and a growing Power-to-X and hydrogen agenda. This post summarises key SAF production pathways and the practical conditions—policy stability, certification, feedstock logistics, and investment readiness—that will determine whether Latvia can scale SAF as a future export product.
NEWS
HydrogenLatvia
1/28/20263 min read
Around 100,000 flights take off globally every day, and aviation remains one of the hardest sectors to decarbonise at scale. That is why Sustainable Aviation Fuel (SAF) is increasingly treated as a near- to mid-term lever: it can be introduced through existing fuel supply chains and aircraft fleets, and depending on the production pathway, lifecycle emissions reductions can reach up to ~80%.
This matters in the context of the EU’s climate target to reduce net greenhouse gas emissions by at least 55% by 2030. For aviation, meeting that trajectory requires a structural reduction in dependence on fossil jet fuel—SAF is one of the few options that can deliver meaningful reductions without waiting for a full fleet transition.
What SAF is—and what it can be made from
SAF is not a single fuel, but a family of fuels produced through different technological routes and feedstocks. The Ministry of Transport YouTube channel episode highlights a broad set of potential inputs, including:
Used cooking oil and animal fats
Algae oil
Agricultural and forestry residues (e.g., straw, wood chips)
Non-recyclable municipal and industrial waste, including organic waste fractions
Industrial gases
CO2 combined with renewable electricity via Power-to-Liquid (PtL), where captured CO2 is synthesised with green hydrogen
Sugar and starch crops (e.g., corn, sugarcane, and similar)
This diversity is important for Latvia because SAF feasibility is ultimately a value-chain question: feedstock availability and sustainability criteria, collection and logistics, pre-treatment, conversion technology, certification, and finally blending and delivery to airports.
View the video (in Latvian): Ilgtspējīgas aviācijas degvielas tehnoloģisko risinājumu un ražošanas iespējas
Can Latvia be a SAF producer—not only a consumer?
A practical question for Latvia is whether it can develop into a regional SAF production hub in the Baltics. The case for “yes” is not theoretical—Latvia already has several enabling conditions that are relevant for industrial-scale fuel production and distribution:
Three large ports with established petroleum product logistics
Developed rail infrastructure
Three Special Economic Zones (SEZs)
A longer-term perspective of the Nordic–Baltic hydrogen corridor, which can become a meaningful enabler for PtX/PtL pathways
In addition, two projects are currently being planned in Latvia where a significant share of production is expected to focus on aviation biofuels. That signals a shift from general opportunity mapping toward concrete investment and implementation decisions.
What Latvia gains from SAF production
The SAF discussion is not only about emissions; it is also about industrial policy and strategic resilience. The episode points to several benefits that are decisive for whether projects become bankable and scalable:
Positioning Latvia as a regional SAF hub with export potential to neighbouring markets
Improved energy security through reduced dependence on fossil fuel imports
Economic growth and new jobs across the value chain
Increased demand for biomass feedstocks and renewable electricity
Higher domestic value added by using local feedstocks and infrastructure
Support for national airlines and regional demand
Lower greenhouse gas emissions from aviation fuel use
At the same time, these outcomes are not automatic. Converting potential into production requires clear and stable “rules of the game”: an investable regulatory framework, robust certification and traceability, alignment with sustainability criteria, and realistic planning for feedstock competition across sectors.
Where green hydrogen fits
Some of the most strategic SAF pathways rely on Power-to-Liquid: captured CO2 is combined with green hydrogen produced from renewable electricity. This connects aviation decarbonisation with the wider energy system transformation—renewable generation build-out, grid flexibility, and industrial demand development.
For Latvia, that means SAF should not be treated as a standalone aviation topic. It is part of a broader Power-to-X and hydrogen ecosystem agenda, where infrastructure corridors, market design, and access to competitively priced renewable electricity will be central constraints.
Working group effort and collaboration
In Latvia, SAF is increasingly being assessed in a structured way. A key element has been the extensive working group meeting activity reflecting on the study of SAF production opportunities together with the Ministry of Transport and PwC consultants—covering feedstock and logistics realities, investment conditions, regulatory implications, and demand-side considerations.
We are grateful for the trust and the opportunity to contribute to this work. The quality of the discussion—and the practicality of the questions being asked—are exactly what is needed to move from concept to implementation.
From opportunity to execution
Latvia’s SAF potential is real—supported by infrastructure, emerging expertise, and planned projects. The next step is disciplined execution: clear investor conditions, consistent policy signals, and coordinated planning across the full value chain.
If done well, SAF can become not only a tool to reduce emissions, but also a future export product and a credible industrial competence for Latvia and the wider region.