Avia Solutions Group to build Northern Europe’s largest SAF plant in Latvia

Avia Solutions Group, a leading provider of aircraft leasing services, has announced plans to develop the largest and most advanced sustainable aviation fuel (SAF) production facility in Northern Europe.

The plant will be located in the Liepāja Special Economic Zone (LSEZ), Latvia, through the newly formed joint venture NorSAF, in collaboration with local partners.

The NorSAF facility is expected to begin operations in 2030, delivering up to 100,000 tonnes of SAF annually.

Estimated investment in the project ranges between €500 million and €600 million, with financial backing sought from EU funds, institutional investors, and public sector stakeholders.

The plant will serve both regional airlines and global markets, supporting the growing demand for low-emission aviation solutions.

The EU mandates that SAF must make up at least 2% of jet fuel usage at airports in 2025, increasing to 6% by 2030, 20% by 2035, and reaching 70% by 2050. This regulation reflects the urgent need for cleaner fuel sources in aviation, an industry under increasing pressure to meet stringent emissions targets.

Gediminas Ziemelis, Chairman of Avia Solutions Group, stressed the strategic importance of the project: "The current global supply of sustainable aviation fuel is far from sufficient to meet the regulatory and commercial demand anticipated in the coming years. Our new facility in Liepāja will be vital in securing supply chains for the future of green aviation."

The plant will utilise PureSAF technology, developed by Swedish Biofuels and licensed exclusively to US engineering company KBR.

This technology has demonstrated greenhouse gas emissions reductions of up to 93% compared to fossil-based jet fuel. Importantly, it also allows for the production of eSAF, a synthetic version of SAF made using renewable electricity, green hydrogen, and captured carbon dioxide.

By 2030, EU regulations will require 1.2% of all SAF supplied to be synthetic, a share that will increase to 50% by 2050. The NorSAF plant’s integrated production model will meet both bio-based and synthetic SAF targets by combining bioethanol, green hydrogen generated via electrolysis and captured CO₂.

Vytautas Cekanavičius, CEO of Baltic Ground Services and NorSAF board member, noted: "We are developing a full green energy cycle - powering electrolysis with renewable electricity to generate hydrogen, then combining it with bioethanol and recycled CO₂ to produce SAF and eSAF. This makes our approach both sustainable and scalable."

The site was selected for its strategic advantages, including existing infrastructure such as gas pipelines, railway access, ethanol handling facilities and plans for a nearby green hydrogen plant. Discussions are ongoing with potential suppliers of CO₂ to support the synthetic fuel production process.

A feasibility study conducted by KBR is due to be completed in late 2025, with construction expected to commence by 2027. According to Jānis Kisiels, board member at NorSAF, project timelines are on track:

"We are working closely with investors, suppliers and EU institutions to begin construction within two years. This facility positions Latvia at the forefront of the SAF industry while contributing to energy independence and green growth."

Currently, the Baltic States consume approximately 400,000 tonnes of aviation fuel annually. Under the EU’s current 2% SAF mandate, the regional demand stands at just 8,000 tonnes. With its planned capacity, the Liepāja plant will not only meet local needs but also provide surplus SAF for export, making it a critical hub in Europe’s green aviation network.