Interview at Kurzemes vārds by Ilze Ozoliņa.

The sustainable aviation fuel (SAF) project in Liepaja promises the city the largest investment since the restoration of Latvia’s independence. However, some residents of Liepaja view this initiative with caution or even opposition. What will be the benefits, and how justified are the concerns about risks? NorSAF board member Jānis Kisiels explains in an interview.

– Why was Liepaja city chosen for this project?

This idea arose as a continuation. In 2010, a reconstruction project for the terminal at Ziemeļu Street 19 (previously GI Termināls, now NorSAF) was launched. Construction was completed in 2016, and the terminal was put into operation. Various oil and chemical cargoes are handled here. The terminal is equipped with the latest technologies, namely vapor collection, which means we have a fully closed cycle with no emissions into the atmosphere from cargo handling.

I fully understand residents’ concerns about further development, but I would like to emphasize that we have been operating for nearly ten years without any complaints from nearby households. One of our key principles is to remain modern and able to fit into the urban environment located so close by. Liepaja is closely connected with the port, so it is important for us to maintain high standards and be both environmentally and socially responsible toward residents living nearby.

As I mentioned, the SAF plant is tied to this location. The Liepaja Special Economic Zone is highly supportive of projects like this. Much of the necessary infrastructure is already in place – a pier, railway and truck unloading/loading facilities, and other systems that will also serve the SAF plant.

Geographically, Latvia is very advantageously located among the Baltic states, with a long sea border and strong ports. Naturally, we make use of this location, which gives us certain benefits.

Another crucial factor for implementing our project is that Latvia’s electricity system and grids, inherited from Soviet times, remain relatively robust – they can handle high loads. In addition, wind and solar parks are being developed in the country. Renewable energy is one of our most important raw materials – we will use wind and solar power to produce hydrogen. Green hydrogen will then be used in fuel production. We plan to cooperate with the company CIS Liepaja, which is developing hydrogen production in the port of Liepāja. We have signed an agreement on hydrogen supply.

– Where is the SAF plant planned to be built?

We respect the city and its residents. The existing terminal’s reservoirs were built in compliance with regulations – placed at a required distance from residential buildings to minimize risk, since all oil products, including sustainable aviation fuel, are flammable. The project is planned on a 16-hectare site, with the possibility of expanding by another four hectares next to the Karosta Canal. Regarding the plant itself, we aim to locate it away from residential areas and schools, and from places where people gather in larger numbers. The factory site, hydrogen electrolyzer, and CO2 reservoirs will be positioned as far away as possible to minimize risks for people, the environment, and quality of life.

The SAF plant is planned at the site of the current Lauma motocross track. The electrolyzer will also be on this plot but located further from public gathering places. We do not plan to build any additional hydrogen storage facilities.

People are afraid of what they don’t know. Hydrogen is already being produced in Riga today, and it is used to fuel trolleybuses. Yet, for many, this substance remains unfamiliar, and therefore feared. But if we compare, hydrogen is no more dangerous than gasoline or other flammable substances we have long been working with.

Regarding the SAF plant, we are not only following regulations but are taking additional proactive steps to ensure maximum safety. We are talking about technologies developed by the American company KBR. This company has been working for over 30 years on engineering solutions for processing industries. One of our main requirements was that the technologies we use should not come from some small, unknown office, but be created by a major global company. That provides greater security both for the environment and for people.

– Still, the motocross track is quite close to residential areas. Can you promise residents they won’t notice smells, noise, or other disruptions to quality of life?

Our existing terminal park is actually closer to residential areas. And when it comes to explosion risks, one should be more concerned about large storage volumes than about the plant itself, where much smaller amounts of flammable substances will be concentrated.

As for odors, the products we will use include hydrogen, which has no smell; CO2, which is a natural component of air; and bioethanol, which is simply alcohol. None of these substances has a smell that would affect quality of life. The final product – aviation fuel – has only a minimal odor. Sustainable aviation fuel has an even fainter smell. Gasoline and diesel fuel, which we will also produce, of course have recognizable smells, but our product will be even less odorous. No other processes that could generate odors will take place at the plant. Noise levels will remain within permitted limits.

In Europe and elsewhere in the world, there are already 33 plants producing sustainable aviation fuel. They all use waste vegetable oils, animal fats, or byproducts of paper production. These feedstocks create slightly stronger odors, although still minimal. That is a completely different technology, which we decided not to apply. The technology we are discussing is already being used in two plants in the United States, as well as in Australia, the Netherlands, and the United Kingdom. It is called ATJ (alcohol-to-jet), but our “PureSAF” technology, created by KBR, differs significantly from the classical ATJ method.

We will use green hydrogen and carbon dioxide, which will be converted into alcohol. The alcohol will then undergo dehydration, oligomerization, and further processes until we obtain sustainable aviation fuel, diesel, and gasoline.

– Is a CO2 export terminal also planned?

Yes, the plan is to combine the use of this raw material with its accumulation, storage, and subsequent export to the North Sea or the Danish straits, where CO2 will be injected into depleted gas fields and stored beneath the seabed at a depth of 1800 meters. This is related to the European Union’s decarbonization regulation and directly concerns fossil industries – cement production, oil refining, and others.

– What will be the benefits of this megaproject for Liepaja?

We are talking about approximately €650 million in investment. That is just the investment here in Liepāja. Additionally, more than half a billion euros will be invested in new wind and solar capacities, balancing power, and, by 2033–2035, we plan for nearly all raw materials to be produced locally in Latvia and the Baltics through agriculture and wood biomass. This will generate another half-billion euros in investments.

We expect that this entire ecosystem will employ over 400 people. These are not only our direct jobs but also indirect ones, as many related service companies will be needed to support various processes. The construction phase will also involve as many local builders as possible.

Altogether, this will contribute to Latvia’s growth and strengthen the country’s international position. For the Baltics as a whole, this project is unique.