Gadot Group Expands into SAF Market to Meet EU Aviation Regulations

Gadot Group, through Gadot Green Oil, the group's recycled and advanced fuels arm, is joining the SAF (Sustainable Aviation Fuel) consortium—a national initiative to promote the development, production, and implementation of sustainable aviation fuels in Israel. This move represents a strategic step in expanding the group's activities in the advanced energy sector, with Gadot Green Oil expected to lead the group's SAF operations.

The SAF market is currently experiencing accelerated growth, driven by mandatory regulations and increasing demand from airlines, airports, and financial institutions. Under Europe's 'Fit for 55' and 'ReFuelEU Aviation' regulations, airlines are required to integrate SAF into their jet fuel mix starting in 2025, with a gradual increase in usage rates over the coming decades. SAF fuels are now perceived as a premium product in the fuel industry, enabling airlines to meet emission reduction targets and improve ESG ratings.

The SAF consortium operates within the framework of the Israel Innovation Authority's R&D consortium track, which has approved a total multi-year budget of approximately 100 million NIS for the project. The consortium connects industrial, energy, and logistics companies with academic research institutions to promote applied research, industrial demonstrations, and preparation for the commercialization of technologies for producing sustainable aviation fuels from renewable sources.

Within the consortium, Gadot Green Oil will serve as the operational arm of the Gadot Group in the SAF field, bringing proven industrial experience in handling used oils, thermal and chemical upgrading processes, and industrial-scale advanced fuel production. These capabilities provide a natural foundation for the development and commercialization of sustainable aviation fuels, positioning the company as a relevant player in the production and industrial application stages of the sector.

Alongside production activities, Gadot Group will contribute its international logistics network to the consortium, including transport, storage, and fuel additive infrastructure in Israel and worldwide. SAF logistics require compliance with strict regulatory and safety requirements, from the transport of raw materials to supply at airports – an area where the group has unique experience and infrastructure that directly intersects with Green Oil's activities.

The group's activities in the consortium are led by Dr. Yelena Tkachenko, CTO of Gadot Group, who is responsible for the technological strategy and the integration of Green Oil's innovative solutions into the consortium's operations. According to her, "The goal is to connect the group's technological, industrial, and logistical capabilities. Collaboration within the consortium enables the promotion of sustainable aviation fuels on an industrial scale."

Gadot Group CEO, Ofer Linchevski, added: "The SAF sector represents significant growth potential for Gadot Group. The combination of technological innovation and an international logistics network creates an opportunity to integrate into the global value chain of sustainable aviation fuels, both in Israel and in international markets. Gadot Green Oil brings proven capabilities in handling recycled raw materials and producing advanced fuels at an industrial scale, which serve as a natural basis for the development and commercialization of SAF."