Supporting the Energy Transition through Sustainable Aviation Fuel

At SCOR, we are deeply committed to supporting the global energy transition. As a longstanding participant of the United Nations Global Compact and a founding signatory of the Principles for Sustainable Insurance, we integrate Environmental, Social, and Governance (ESG) principles into our underwriting and investment policies. Our dedication to climate protection is exemplified through our insurance of innovative projects like the Montana Renewables facility in Great Falls, Montana.

Montana Renewables: A Leader in Sustainable Aviation Fuel

Sustainable Aviation Fuel provides a lower-carbon alternative to traditional jet fuel. It is a "drop-in" fuel, which means it can be used with existing aircraft and airport infrastructure – a significant advantage in terms of simplifying the adoption process. As the second-largest producer of Sustainable Aviation Fuel (SAF) in the United States, Montana Renewables is at the forefront of the renewable energy revolution. 

According to the International Air Transport Association (IATA), SAF could contribute around 65% of the emissions reductions the aviation industry needs to be net zero by 2050. Making this happen will require a huge increase in SAF production. The Montana Renewables facility is set to expand significantly, with the help of a $1.44 billion loan from the Department of Energy (DOE). This expansion will increase the facility's production capacity to approximately 315 million gallons of biofuels annually by 2028, with a significant portion dedicated to SAF.

The Importance of SAF, Renewable Diesel, and Hydrogen

The growth of SAF is parallel to the production of Renewable Diesel (RD), as both use similar feedstocks and processes. Montana Renewables is also pioneering the use of green hydrogen in its conversion process, further lowering its operations' carbon footprint. 

The expansion of Montana Renewables will boost SAF production and contribute to the supply of RD, providing low-carbon mobility fuels worldwide. This dual production capability is vital for the large-scale adoption of SAF, enabling airlines to commit seriously to its use.

SCOR's Broader Commitment to Renewable Energy

Our support for Montana Renewables is part of SCOR's broader strategy to foster a sustainable and resilient future. In 2023, we launched a dedicated New Energy Practice to support the ongoing energy transition needs of our clients. This practice offers comprehensive insurance solutions for a wide range of low-carbon technologies, including wind farms, solar farms, hydrogen¹, carbon capture, and biofuels.

Looking Ahead

As we continue to support projects like Montana Renewables, SCOR remains committed to accelerating the energy transition. By providing end-to-end coverage and leveraging our global expertise, we ensure that our clients are protected at every stage of their energy transition journey. Together, we can build a more sustainable future.

¹Learn more about hydrogen on the SCOR Innovation Podcast Channel, with a three-part series covering the basics of hydrogen, its impact on industry and our lives, and what it means for (re)insurance.