In this episode of The SAF Podcast, we sit down with Martin Forman, Director at Sumitomo Mitsui Banking Corporation (SMBC), to explore the challenges and opportunities in financing sustainable aviation fuel (SAF) projects. With a background spanning energy M&A, hydrogen, CCS, and biofuels, Martin brings a pan-European and global view on decarbonisation finance.

We discuss why Japanese institutions—particularly trading houses and banks—have become such active SAF investors, and how Japan’s domestic SAF mandates are triggering large-scale international investments. Martin explains SMBC’s strategic interest across the SAF value chain, from project lending to aircraft leasing and storage infrastructure, and outlines what makes a SAF project attractive from a lender's perspective.

The conversation dives deep into equity versus debt in project finance, the challenges of funding first-of-a-kind SAF technologies, and the growing importance of public-private partnerships. Martin shares candid insights on why equity—more than debt—is the bottleneck, and how regulation, price certainty, and government support mechanisms like Project SkyPower are critical for unlocking financing and achieving 2030 mandate targets.

Finally, Forman discusses SMBC's preference for club lending arrangements, strategic sponsors over financial investors, and the importance of proximity to feedstock sources. 

If you enjoyed this discussion check out our previous episode with Richard Mathers, Honeywell here: https://www.buzzsprout.com/2202964/episodes/17475885