Round up of some SAF agreements part one30 Nov 2023 09:48
FACTBOX – European airlines secure supplies of low – carbon jet fuel
28 Nov 2023
Nov 28 (Reuters) – European airlines are ramping up investments and signing agreements to secure supply of sustainable aviation fuel (SAF) needed to meet targets set by the European Union aimed at curbing the aviation sector's carbon footprint.
The adoption of alternative fuels made from bio-based materials could cut carbon emissions by up to 80% compared to conventional fuel, and is seen as a route to help the sector reach its net zero emissions goal by 2050.
On Tuesday, Virgin Atlantic will aim to highlight the importance of the alternative fuel's use with a 100% SAF-powered flight from London to New York City.
SAF currently makes up less than 0.1% of aviation fuel used globally and costs three times as much as regular jet fuel when made from waste oils, but other versions made from green hydrogen can cost more.
Here are some deals signed by European airlines so far:
Air France-klm
In November, the group invested $4.7 million in DG Fuels' SAF production plant in the U.S. state of Louisiana, a step towards its target to use SAF for 10% of its flights by 2030.
It also said on Sept. 18 it had signed a memorandum of understanding (MoU) with Austrian energy company OMV to buy more than 300,000 metric tons (100 million U.S. gallons) of SAF by 2030.
The deal was followed by an offtake agreement for OMV to supply the airline with 2,000 metric tons of SAF in 2023.
Easyjet
In September 2022, the airline signed a five-year SAF supply agreement with Q8Aviation, the jet fuel unit of Kuwait Petroleum International.
Finnair
In June 2022, the Finnish carrier signed a five-year deal worth $192 million with U.S.-based renewable fuel producer Gevo to buy 21,000 metric tons of SAF per year from 2027.
Iag
The owner of British Airways and Iberia in August signed an agreement to buy 14,700 metric tons of SAF in 2023 from U.S. energy firm Phillips 66 .
Microsoft was also involved in the deal as part of its efforts to cut carbon emissions of its business travel and air freight.
In November 2021, IAG and Southwest Airlines jointly agreed to buy nearly 920,000 metric tons of SAF created from woody biomass in Mississippi.
Under the deal, IAG will buy 220,000 metric tons of SAF over 10 years starting 2026, while Southwest will buy 670,000 tons over 15 years starting from the same year.
Icelandair
The Icelandic carrier in March said it had signed an MoU with green hydrogen developer IdunnH2 for the use of up to 45,000 metric tons of SAF from 2028 onwards.
Jet2
Britain's Jet2 said in April it was making a "major investment" in a SAF production plant in northern England, with production expected to start in 2027.
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