Avelia by Shell is a project using blockchain technology to decarbonize the aviation industry through the adoption of Sustainable Aviation Fuel (SAF). Sustainable Aviation Fuel (SAF) is described as “a fully industry compliant fuel made from alternative feed-stocks to crude oil.”
This digital book-and-claim platform, developed in collaboration with Accenture, American Express Global Business Travel (Amex GBT), Energy Web Foundation, Google, Delta Air Lines, and Emirates, enables to track the environmental attributes of SAF in a clear and transparent way. The goal is to track the use of SAF by the airlines and know when the fuel is used.
By creating an RWA (Real World Asset) certificate for carbon-neutral fuels, Avelia shows how blockchain can be used to support and certify sustainable practices in various industries, with a particular focus on the aviation sector. Avelia uses Energy Web Chain, which is an EVM-compatible public blockchain. They emphasized the importance for them to use a public blockchain as they want to make sure to promote transparency and traceability.
The Problem with the Aviation Industry:
Due to its nature, the aviation industry significantly contributes to global carbon emissions, making it an extremely important focus area with regards to efforts to mitigate climate change. However, this industry poses a lot of technical challenges and there are a lot of costs associated with trying to change it. A shift towards decarbonization is extremely costly. Moreover, traditional jet fuels are carbon-intensive, and while Sustainable Aviation Fuel offers a promising alternative, its production is expensive and market adoption has been slow. This has hindered the widespread use of SAF and the industry’s overall progress toward decarbonization.
How Blockchain Can Play a Role:
Blockchain technology has the potential to play a very important role in addressing the decarbonization challenges of the aviation industry. Avelia is a blockchain-powered platform that provides a solution by offering a transparent and secure system for tracking the environmental attributes of SAF. The platform’s digital book-and-claim functioning ensures the integrity of sustainability claims, fostering trust among stakeholders and encouraging a greater adoption of SAF. For instance, Amex GBT’s world-leading travel management services are integrated into Avelia. This allowed to aggregate global business demand for SAF. This helps to increase SAF supply and use, ultimately contributing to the industry’s transition to net-zero emissions.
Additionally, the use of blockchain facilitates the tokenization of environmental attributes. Indeed, Avelia allows airlines and corporations to receive tokens as proof of their contribution to the overall supply of SAF, even if the fuel doesn’t directly power their aircraft. Overall, the use of blockchain technology is a game-changer for that industry. By leveraging the properties of blockchain such as transparency, security, and traceability, Avelia ensures that the journey of every SAF’s liters and the environmental impact it has is accurately recorded and easy to verify. This not only builds trust in the system but also simplifies the process of tracking and claiming environmental benefits for airlines and corporations. Indeed, Avelia highlights the importance of collaboration across the aviation system.
This innovative use of blockchain not only promotes the funding and adoption of SAF but also showcases how technology can drive sustainable change and create a more environmentally responsible future.