Following shortly after a similar offtake deal with US e-SAF startup Twelve, International Airlines Group (IAG), the owner of British Airways, Iberia, Aer Lingus, Vueling and LEVEL, has announced a 10-year agreement to purchase power-to-liquid aviation fuel, or e-SAF, from California-based Infinium. The volume and value of the deal were not disclosed, but the e-SAF will be produced at the clean-tech company’s Project Roadrunner plant, a former gas-to-liquids facility currently being converted in West Texas. Infinium says the plant will become the world’s biggest e-SAF facility once it is fully operational. The company has backing from Amazon’s Climate Pledge Fund and Bill Gates’ Breakthrough Energy Catalyst, and in September it raised a potential $1 billion through Brookfield Asset Management towards Roadrunner and the deployment of other e-fuel projects globally. It also has a strategic deal with American Airlines for delivery of commercial volumes starting in 2026.

“Long-term, bankable commitments like these are what drive the ability to ramp up production of e-SAF,” commented Robert Schuetzle, Infinium’s CEO, on the IAG agreement.

IAG claims its airlines used an estimated 12% of global SAF supplies last year. The new deal will enable the company to access Infinium’s e-SAF for any of its five airlines, which collectively operate 582 aircraft to more than 250 destinations in 91 countries.

“So far, we’re on track to deliver our 10% 2030 SAF goal,” said Jonathon Counsell, IAG’s Group Sustainability Officer, “and agreements with innovators like Infinium are key to reaching this target.”    

Aviation’s focus on e-SAF has intensified as global demand for SAF increases dramatically and as the EU prepares to activate a 2% fuel blending mandate for flights from its airports from 1 January. EU mandates will progressively escalate, climbing to 70% by 2050. Other governments, including the UK, are following, initially with mandates varying from 1% to 10% by 2030. Both the UK and EU SAF mandates will add a power-to-liquid requirement from 2028 and 2030 respectively.

Of the Infinium investment secured from Brookfield Asset Management, more than $200 million is earmarked for developments including Project Roadrunner and up to $850 million more for deployment of other Infinium e-fuel projects globally, all subject to pre-agreed metrics.

Breakthrough Energy Catalyst has also committed $75 million in project level equity to Project Roadrunner, its first announced equity investment. Breakthrough pulls together corporate and philanthropic organisations to expedite the use of new technologies by supporting clean technology innovation in commercial-scale projects.

American Airlines, the world’s largest carrier and a partner of multiple IAG airlines in the oneworld marketing alliance, has also entered a strategic partnership with Infinium to secure commercial volumes of e-SAF produced by Project Roadrunner.

Announcing their new deal, IAG and Infinium highlighted the abundance of CO2 either captured at the source of industrial production, extracted from biogenic waste or sucked directly from the atmosphere by giant fans.

“This new class of fuel is not encumbered by feedstock limitations, has a higher degree of emissions reduction versus conventional jet fuel, and has a relatively low land and water use footprint,” said the companies.

IAG’s Counsell urged regulators to focus on measures to encourage decarbonisation of air transport, rather than increase costs for the sector.

“Aviation as an industry is working hard to decarbonise and policy should focus on solutions such as SAF, rather than only increasing costs which risk affecting the competitiveness of the European aviation industry,” he said.  

“What the industry needs is additional policy support to attract funds to construct SAF plants and reduce aviation’s reliance on fossil fuels.”

The IAG-Infinium deal follows the formation of Project SkyPower by a high-profile coalition of European companies including airlines, airports, energy companies and financiers to advocate for development of an e-SAF industry in Europe.  

A report produced by the group in May argued that e-SAF is the most effective, and eventually the most affordable, pathway to low-carbon flight and urged governments to develop policies that reduced investment risk in infrastructure development and fuel production before SAF mandates are activated.

It also estimated that capital investment of €15 billion to €25 billion ($16-27bn) would be needed by 2030, and a further €3 billion to €5 billion annually to achieve the scale needed to meet ever-increasing SAF blending mandates.

“It typically takes five years for an e-SAF project between reaching final investment decision and being operational,” said the report. “Therefore, final investment decisions for e-SAF projects are needed by 2025 to start production by 2030.”

Photo: Infinium’s Project Roadrunner facility in West Texas

Tony Harrington

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Two Californian e-fuel startups, Infinium and Twelve, have received a joint total of up to $1.7 billion in funding and investment to help accelerate production and availability of sustainable aviation fuel. Brookfield Asset Management has committed to invest more than $200 million in Infinium’s Project Roadrunner that is under development in West Texas and up to an additional $850 million for deployment of other Infinium eFuels projects globally, all subject to pre-agreed metrics. This marks Brookfield’s first direct investment in SAF and the investor will also serve as lead in Infinium’s Series C Preferred Stock Offering. Twelve has received $645 million in funding, which includes $400 million in project equity led by TPG Rise Climate, $200 million in Series C financing and an additional $45 million in credit facilities from funders in the renewable energy sector.

Infinium produces eSAF through a proprietary process that combines water, waste CO2 and renewable energy to produce drop-in eSAF as well as eDiesel and eNaphtha. The company recently announced a strategic deal with American Airlines, in which American will purchase commercial volumes of its eSAF starting in 2026 produced by Project Roadrunner.

“Brookfield is a tremendous partner and we are thrilled to secure this additional capital as we scale eSAF production to meet the overwhelming demand from the aviation industry,” said Infinium CEO Robert Schuetzle.

“Our Project Pathfinder site was the first to bring commercial volumes of e-fuels to market and Project Roadrunner brings additional volumes to scale global supplies. As our airline partners continue to push for more SAF and decarbonisation options, Infinium remains committed to accelerating production to help meet those demands.”

Brookfield joins existing backer Breakthrough Energy Catalyst, which previously committed $75 million in funding for Project Roadrunner.

“Our investment is structured to provide the capital Infinium needs to accelerate the production of SAF to meet the growing demand from corporate customers while generating attractive risk-adjusted returns for us,” explained Jehangir Vevaina, Managing Partner at Brookfield, which has around $1 trillion of assets under management. “In addition to Roadrunner, Infinium has a large pipeline of well-positioned projects to help meet the demand for the structurally short e-fuels market, and we are looking forward to the opportunity to participate in the development of further e-fuel projects through follow-on investments.”

Infinium claims Project Pathfinder in Corpus Christi, Texas, is the world’s first commercial-scale facility making drop-in ready e-fuels for heavy transportation applications and chemical processes, and is the first in North America to produce e-fuels that have received ISCC PLUS certification. Pathfinder integrates Infinium’s novel fuel production technology using patented catalysts with on-site electrolysers, a state-of-the-art laboratory, logistics and delivery mechanics to produce, validate and distribute e-fuels in what it describes as fewer steps than others in the industry.

The company says it has more than a dozen additional projects under development across the United States, the EU, Japan and Australia.

Meanwhile, funding raised by Twelve will be used towards the completion of the company’s inaugural AirPlant One eSAF facility located in Moses Lake, Washington, which is expected to begin production in 2025. Twelve’s patented technology will be used to produce SAF derived from biogenic CO2, water and renewable energy sources, which achieves claimed lifecycle emissions up to 90% lower than conventional fossil jet fuel. Twelve recently raised $45 million in total loans from two lenders – the first a $25 million construction loan from clean energy investment firm Fundamental Renewables, the other a $20 million green loan from multinational bank SMBC.

TPG Rise Climate, a $7.3 billion climate impact fund, has now committed up to $400 million in project equity financing to support the development of future AirPlants, which will supply Twelve’s E-Jet fuel to customers like Alaska Airlines and IAG, parent company of British Airways.

“We are drawn to companies and founders that have developed and proven unique solutions to complex problems,” said Jonathan Garfinkel, Managing Partner at TPG Rise Climate. “Twelve is a clear leader in CO2 conversion technology, which is a core part of the power-to-liquids technology stack, and the process we believe represents the long-term scalable solution for SAF production.”

TPG is leading Twelve’s $200 million Series C round alongside Capricorn Investment Group and Pulse Fund. A number of new and existing investors participated in the round, including Microsoft’s Climate Innovation Fund and Alaska Airlines’ investment arm, Alaska Star Ventures.

“We are excited to be a part of this round of forward-looking funders to make a more sustainable future for aviation possible,” said Diana Birkett Rakow, SVP Public Affairs and Sustainability at Alaska Airlines. “Over the last several years we have appreciated getting to know the team at Twelve. Together we are building a multi-level partnership to expand supply, mature the market for SAF and to soon use their E-Jet fuel in our operations.”

Responded Nicholas Flanders, CEO at Twelve: “Our financing strategy has been to build a comprehensive capital stack that enables us to deliver product to customers at scale while continually driving down costs. We’re proud to work with visionary financing partners and collaborators who share our commitment to deploying first of a kind technologies that address climate change at scale.”

Photo: American Airlines expects to purchase commercial volumes of Infinium’s eSAF starting in 2026

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E-fuels will be featured at Aviation Carbon 2024

The Lufthansa Group has introduced an environmental cost surcharge on all tickets issued from June 26 with departure from 1 January 2025 on flights from the 27 EU countries as well as the UK, Norway and Switzerland. The amount of the surcharge varies between 1 euro and 72 euros ($1.08 – $78), depending on the flight route. It is intended to partly cover “the steadily rising additional costs due to regulatory environmental requirements.” Specifically, Lufthansa cites the impact of the ReFuelEU sustainable aviation fuel statutory blending quota to be introduced for departures from EU countries from January next year, adjustments to the EU Emissions Trading System (EU ETS) and costs of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Luis Gallego, the CEO of International Airlines Group (IAG), which owns British Airways, Iberia and Aer Lingus and other European carriers, has told The Times that EU mandated net zero targets and the switch to SAF will push up air fares and have a big impact on demand.

In a statement, Lufthansa Group said it was investing “billions in new technologies every year” and was working with partners on innovations to help make flying more sustainably, and had actively supported global climate and weather research for many years.

“However, the airline group will not be able to bear the successively increasing additional costs resulting from regulatory requirements in the coming years on its own,” it said.

The EU SAF blending quota starts at 2% from 2025, 6% from 2030, 20% from 2035 and 70% from 2050. “For the Lufthansa Group, this will lead to additional costs in the billions in the future,” said the group, which includes Lufthansa, SWISS, Austrian Airlines, Brussels Airlines and Eurowings.

SAF accounted for around 0.2% of the group’s total fuel requirements in 2023, which it says makes it one of the largest SAF customers worldwide.

IAG’s Gallego, reported The Times, said the cost of compliance with the EU’s “demanding” targets could make European airlines less competitive and decarbonisation should be done in a consistent way worldwide that did not jeopardise European aviation.

IATA Director General Willie Walsh has already warned the SAF cost premium would lead to higher air fares. At its recent AGM in Dubai, IATA reported SAF production could rise to satisfy 0.53% of global demand for jet fuel in 2024 at a cost of $3.75 billion to airlines, representing an additional $2.4 billion to what it would cost to purchase the same quantity of conventional jet fuel. It estimated CORSIA-related costs would account for a further $600 million in 2024.

Photo: Lufthansa Group

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Carriers meeting at the annual Airlines for Europe (A4E) Summit in Brussels called on policymakers to “supercharge” the production of sustainable aviation fuels across Europe through the introduction of competitive tax credits and the funding and support for nascent, emerging and established SAF projects or fuel producers. It is crucial that Europe supports affordable and reliable domestic production, they said in a “call to action”, particularly in the face of significant market pressure from global players outside of Europe. Meanwhile, A4E member Lufthansa Group has reported more than one million passengers have opted for its Green Fares tickets, which includes a provision for SAF offsetting, one year after their launch. European renewable fuels producer Neste has started supplies of blended SAF at Schiphol under an agreement with Emirates, while Sasol and Topsoe have launched their new joint venture Zaffra, located in Amsterdam, that will focus on SAF development and delivery.

At the forefront of A4E’s “call to action” is what it describes as “competitive decarbonisation” in a global market, to ensure Europe is a world leader in aviation’s net zero transformation.

“The next few years provide a real opportunity for change and we are setting out how we want to future-proof flying,” said A4E Managing Director Ourania Georgoutsakou at the opening to the trade body’s Summit in Brussels. “We are today making a pledge to improve the future of flying but can only do this if policymakers make the vital changes to support our decarbonisation efforts, providing real airspace reform, ensuring our sector remains competitive and completing a true single aviation market.”

A4E member airlines have been involved in a number of SAF commitments this month. International Airlines Group (IAG), made up of Aer Lingus, British Airways, Iberia and other carriers, signed a 14-year agreement with US startup Twelve for the supply of 785,000 tonnes of e-SAF, the groups biggest single SAF deal to date and the first e-SAF procurement by a European airline group (see article).

Following its purchase of 500 tonnes of SAF from Austrian energy company OMV last year, Ryanair reported it would take an additional 500 tonnes in 2024. Under an MoU between the two companies, Ryanair has access to purchase up to 160,000 tonnes of SAF during the period to 2030.

Another A4E member, AEGEAN, which first flew with SAF in 2021, is to expand its use of SAF under an agreement with Shell and MOH Aviation, who will supply a “significant” quantity of blended SAF at Stockholm Arlanda and London Heathrow airports. The Greek carrier said this marked the beginning of a gradual expansion of its SAF uplift programme, “where available”, throughout its entire network.

According to Lufthansa Group, an average of 3% of passengers have used its Green Fares tickets, with the tickets being selected by 11% of business class travellers via the Lufthansa Group portals. In total, travellers have offset around 77,000 tonnes of CO2. Offsetting of flight CO2 emissions is through SAF as well as by a contribution to high-quality climate protection projects. The group ensures the amount of SAF required for offsetting is fed into the airport infrastructure within six months of purchase.

Green Fares are available with Lufthansa, Austrian Airlines, Brussels Airlines, SWISS, Edelweiss, Discover Airlines and Air Dolomiti on more than 730,000 flights per year within Europe and to Morocco, Algeria and Tunisia. The group has been testing Green Fares on selected long-haul routes since November 2023.

Meanwhile, Finland-headquartered Neste has launched Neste Impact for businesses looking to reduce the carbon footprint of their air travel and transport activities. The solution is aligned with the Science Based Targets initiative (SBTi), enabling businesses to credibly report achieved emission savings and follows a book-and-claim approach. The related emission reduction achieved is third-party verified and further validated through the ISCC SAFc registry. Neste ensures the SAF is supplied to a partner airline and the purchased amount is verifiably used to replace fossil fuel.

UAE carrier Emirates has activated its fuel agreement with Neste at Amsterdam Schiphol and 2 million gallons of blended SAF will be supplied into the airport’s fuelling system over the course of 2024. The blended SAF will comprise over 700,000 gallons of neat SAF. The airline will track the delivery of SAF into the fuelling system and the environmental benefits using standard industry accounting methodologies.

Global chemicals and energy company Sasol and Danish carbon emission reduction technology specialist Topsoe have launched their joint venture, named Zaffra, which will be based in Amsterdam. The partners say the new company, to be headed by former Shell Aviation boss Jan Toschka, aims to advance SAF production and technologies.

Photo © Lufthansa Group

Christopher Surgenor

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European airline conglomerate International Airlines Group (IAG) has signed a 14-year purchase agreement with emerging US-based renewable fuel producer Twelve for the supply of 785,000 tonnes, representing 260 million gallons (984 million litres) of e-SAF, or sustainable aviation fuel produced by converting captured carbon dioxide into low-carbon liquid fuel. Deliveries could start as early as next year from Twelve’s new demonstration plant, which is under construction in the aerospace hub of Moses Lake in the northwest US state of Washington. The Twelve deal is IAG’s biggest single commitment to SAF to date, and the first e-SAF procurement by a European airline group. The fuel will be used to supply IAG’s five airlines – British Airways, Iberia, Aer Lingus, Vueling and LEVEL – as the group progresses plans to use multiple SAF types to reduce its flight carbon emissions.

“We have a roadmap to achieve net zero by 2050 including a target to fly with 10% sustainable aviation fuel by 2030,” said IAG CEO Luis Gallego. “The shortage of sustainable fuel globally continues to be a problem for our industry, although innovative companies like Twelve are an important part of the solution.

“This new deal will contribute towards our 2030 SAF target. We would like to see similar projects scale in Europe and we look forward to working with governments across our key markets to build a SAF industry to deliver jobs, economic growth and a stable supply of SAF.”

The new e-SAF deal extends a partnership formed in 2020 when California-based Twelve joined Hangar 51, a start-up accelerator established by IAG which, “dependent on appropriate government policy support”, aims to use 1 million tonnes of SAF per year by 2030 to help fuel its collective fleets, which currently total 582 aircraft.

The companies originally collaborated to commercialise Twelve’s Opus power-to-liquid fuel technology, which is designed to replicate the natural carbon-absorbing process of photosynthesis by combining CO2 with green hydrogen to create synthesis gas, or syngas, which is then to converted to liquid fuel.

Unlike physical feedstocks including waste fats, oils, greases, or solid waste that are used in other SAF production processes, CO2 is in abundant supply, extracted directly from industrial points of emission, biogenic waste or the atmosphere, while green hydrogen is made by using renewable electricity to divide water into hydrogen and oxygen.

IAG, which claims it consumed approximately 12% of global SAF supplies last year, said the new deal with Twelve would secure one-third of the SAF which the airline group needs to achieve its 2030 target, adding that its new fuel would comply with sustainability certification schemes such as the Roundtable on Sustainable Biomaterials (RSB) and International Sustainability and Carbon Certification (ISCC). By 2050, IAG expects SAF to comprise 70% of its total jet fuel content.

“This deal brings the scale-up of e-SAF, produced using power-to-liquid technology, one step closer to reaching its full potential in the aviation industry,” explained the companies.

Nicholas Flanders, co-founder and CEO of Twelve, welcomed the “historic” deal to provide e-SAF to IAG, claiming the fuel would have 90% lower lifecycle emissions than conventional jet fuel. “Our power-to-liquid E-Jet fuel offers industry-leading emissions reduction potential with the added benefits of an abundant feedstock supply and significantly smaller land and water footprints compared to alternative SAF pathways,” he said.

To sustainably serve its global network of more than 250 destinations in 91 countries, IAG has diversified its decarbonisation strategies through initiatives including continuous investment in new aircraft, fuel efficiency measures, and both purchasing SAF and investing in fuel and technology manufacturers. By 2050 the airline group expects to meet more than 90% of its emission reduction targets without relying on carbon offsets.

Between now and 2030, the five IAG airlines plan to induct 192 new aircraft, collectively valued at €13.5 billion ($14.5bn).

The group has SAF procurement commitments valued at $865 million with providers including UK-based Phillips 66, Neste in Finland and Singapore, US producers LanzaTech and Gevo, and through its membership of the oneworld global airline alliance, British Airways will this year start acquiring SAF from Aemetis at airports in California.

BA has also invested in LanzaJet, which recently began producing alcohol-to-jet SAF at its new Freedom Pines Fuels plant in Soperton, Georgia, and in hydrogen propulsion start-up ZeroAvia, which is progressing the conversions of turboprop aircraft to hydrogen-electric fuel cell powertrains. Additionally, the airline has partnered with Velocys in construction of a waste-to-fuel SAF plant at Immingham, in the UK.

As well, the UK Government’s Advanced Fuels Fund recently granted £9 million to IAG’s Project Speedbird, an ethanol-to-jet fuel collaboration in the UK between British Airways, LanzaJet and Nova Pangaea.

Top photo: IAG

Photo below: Twelve breaks ground on its first E-Jet demo plant at Moses Lake, Washington

Tony Harrington

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LanzaJet has formally opened its pioneering Freedom Pines Fuels ethanol to sustainable aviation fuels facility in Soperton, Georgia. While SAF production currently is based around feedstocks such as waste oils and fats, LanzaJet says its ethanol-based alcohol-to-jet (AtJ) technology is the world’s first viable next-generation SAF technology capable of scaling production to the levels needed to decarbonise aviation. It will use feedstocks that include agricultural waste, municipal solid waste, energy crops and captured carbon from industrial processes. Under construction since 2022, production at Freedom Pines is due to start this quarter and at full capacity the facility will produce nine million gallons of SAF and  one million gallons of renewable diesel a year. Among LanzaJet’s backers and customers for the fuel are All Nippon Airways and British Airways, and is a partner with BA in a SAF production facility project in the UK.

“This is a historic milestone in a long history of firsts for LanzaJet, the United States and the SAF industry globally,” announced LanzaJet CEO Jimmy Samartzis at the opening. “Between feedstock versatility, efficiency and economics that enable scale in the US and globally, we stand ready to meet aviation’s decarbonisation goals established at the United Nations and country ambitions, such as the US SAF Grand Challenge.”

The Grand Challenge, which was launched in 2021 by the Department of Energy, Department of Transportation and US Department of Agriculture, calls for a supply of at least three billion gallons of SAF annually by 2030.

“The Biden-Harris Administration is committed to harnessing the full potential of SAF as we continue to build a strong economy that is sustainable, resilient, competitive and keeps rural places thriving,” said US Agriculture Secretary Tom Vilsack, who attended the opening of Freedom Pines Fuels. “As we transition to SAF, this will help American companies such as LanzaJet corner the market of a valuable, emerging industry, while revitalising rural communities like Soperton with agriculture front and centre in the effort. LanzaJet’s facility will help accelerate the SAF industry and provide new economic opportunities for producers for a more sustainable future.”

LanzaJet, whose technology was developed by LanzaTech and the Pacific Northwest National Lab (PNNL) and claims to reduce GHG emissions by more than 70%, has secured investment both nationally and internationally. Shareholders include International Airlines Group (IAG), LanzaTech, Mitsui & Co, Shell and Suncor Energy, and has attracted investment from the Microsoft Climate Innovation Fund, Breakthrough Energy, British Airways (BA) and All Nippon Airways (ANA).

The Freedom Pines facility is fully funded and has committed offtake agreements for all the fuel produced over the next 10 years. The company says it will have created more than 250 jobs and generate an estimated $70 million in annual economic activity for the local economy.

“As we start up the plant, we will continue to refine our technology, while launching our efforts to advance new sustainable fuels projects globally,” said Samartzis.

LanzaJet will use the same AtJ technology on ‘Project Speedbird’, a second-generation SAF production facility being developed by Nova Pangaea Technologies (NPT) in north-east England. Backed by British Airways and its parent IAG, construction of the new plant is expected to begin in 2025 and, through its patented REFNOVA process, NPT will convert woody and non-food derived agricultural wastes into ethanol, which will then be turned into SAF by the LanzaJet process. The facility, which is planned to be built by 2027 and at full capacity by 2028, will produce 27 million gallons of SAF per year, all of which will be purchased by BA.

Last November, the project was awarded £9 million ($11.2m) in funding under the UK government’s Advanced Fuels Fund competition.

“The Freedom Pines project acts as the blueprint for using LanzaJet’s innovative ethanol to SAF process technology here in the UK, starting with ‘Project Speedbird’, and shows how quickly the US is moving ahead,” said British Airways CEO Sean Doyle.

Added Luis Gallego, CEO of IAG, which has committed to flying on 10% SAF by 2030: “The LanzaJet ethanol-to-jet fuel plant in the US is a demonstration of how government support and investment in green technologies can help make aviation more sustainable. At IAG, we look forward to bringing LanzaJet’s technology to the UK, with Nova Pangaea, to help the UK meet its target of five SAF plants in construction by 2025.”

Photo (LanzaJet/British Airways): Opening of the LanzaJet Freedom Pines Fuel facility in Soperton, Georgia

Christopher Surgenor

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International Airlines Group (IAG), parent company of Aer Lingus, British Airways, Iberia, Vueling and LEVEL, is making a £4.4 million ($5.6m) investment in UK cleantech company Nova Pangaea Technologies (NPT), which is developing technology to convert agricultural waste and wood residue feedstocks into second-generation bioethanol that can then be processed into sustainable aviation fuel. IAG says the investment is in addition to an existing commitment of $865 million in future SAF purchases and other investments, with agreements in place for 250,000 tonnes of SAF that represent 25% towards its target of one million tonnes by 2030. The new investment will progress the development of NOVAONE, NPT’s first waste-to-fuel commercial-scale production facility. Construction at a site in North-East England is expected to begin later this year, with the facility producing biofuels by 2025. IAG says it is seeking to secure further UK SAF supply ahead of the UK government’s SAF mandate due to be introduced from 2025.

The mandate requires at least 10% jet fuel to be made from sustainable feedstocks by 2030, representing 1.2 million tonnes (1.5 billion litres) of fuel. IATA estimates total global production in 2022 to have been a maximum of 450 million litres so, points out IAG, global supply would have to triple just to meet the UK’s mandate. Therefore, facilities such as that which NPT is planning to construct will be vital in meeting this demand, says IAG, which is planning to harness NPT’s technology to support the decarbonisation of the other airlines in its group.

“Sustainable aviation fuel is the only realistic option for long-haul airlines to decarbonise, which is why investment in this area is so critical,” commented Luis Gallego, CEO of IAG, the first European group to commit to the use of 10% SAF by 2030. “And we are not just buying SAF, we are willing to invest in developing the industry, but we need governments in the UK and Europe to act now to encourage further investment.”

NPT’s technology is feedstock agnostic, which de-risks the supply chain and future proofs the production of second-generation ethanol, says the company. Residues from sawmills and forestry operations will come from UK sawmills and include sawdust and other wood trimmings. Agricultural waste, including wheat straw and corn stover, are mostly left on the fields after harvests and used for fodder or landfill materials. NPT’s REFNOVA process also produces the co-product biochar, a natural carbon sink that can be used as soil enhancement.

Commenting on the IAG investment, NPT’s Chief Executive, Sarah Ellerby, said: “This is a transformational milestone and a real endorsement of the work we are doing. We are delighted to be adding IAG to our shareholder register.

“Our facility will be the UK’s first commercial plant of its kind and it will play a crucial role in decarbonising the aviation sector, as well as providing local employment opportunities. We are confident in beginning construction later this year and producing second-generation biofuels by 2025.”

NPT first struck a partnership with IAG subsidiary British Airways and LanzaJet in 2021, announcing the launch of Project Speedbird, in which NPT would be providing bioethanol feedstocks to be processed into SAF for the airline by a dedicated SAF plant using LanzaJet’s patented technology. With British Airways intending to purchase all the SAF, the facility is expected to produce 82,000 tonnes of SAF per year and so reducing net lifecycle CO2 emissions by 230,000 tonnes per year, the equivalent of around 26,000 BA domestic flights.

Photo: British Airways

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Spanish airline group Iberia has partnered with Madrid-based global energy company Cepsa to research, develop and procure sustainable aviation fuels, and to explore other low-or-no-emission energy sources including renewable hydrogen and electricity to power ground service vehicles and aircraft tugs at airports. Cepsa will develop “on a large scale” SAF produced from waste, recycled oils and sustainable plant-based feedstock, while providing Iberia and its low-cost sibling Iberia Express with “preferential access” to the fuels, reports Tony Harrington. “This alliance illustrates our commitment to sustainability and our strong resolve to support our customers by providing them with viable solutions that accelerate their energy transition,” said Maarten Wetselaar, Cepsa’s newly-appointed CEO. “As a leader in the supply of fuels to the airline industry, we share with the Iberia Group the common goal of promoting the decarbonisation of transport as a tool in the fight against climate change.”

Sustainable aviation fuel is a core element of Iberia’s broad-based environmental strategy, says the airline, which also includes aircraft fleet renewal, greater fuel efficiency, elimination of single-use plastics on flights, improved waste management and increased use of digital processes. Iberia’s parent company, International Airlines Group, which also owns British Airways, Aer Lingus and low-cost carriers Vueling and Level, has committed it will reduce net CO2 emissions by 20% between 2019 and 2030, while the oneworld airline alliance, of which Iberia and British Airways are members, is targeting by 2030 that 10% of the collective fuel volumes of its 14 member airlines will comprise SAF.

In a joint statement, Iberia and Cepsa said: “The development of sustainably-sourced aviation fuels is a priority for moving towards an increasingly low-carbon industry and contributing to the achievement of the 2030 agenda.” They said their partnership, which will include SAF research and flight testing, would also contribute to three of the key sustainable development goals set by the United Nations – goal 7, to “ensure access to affordable, reliable and modern energy services”, goal 8, to “promote inclusive and sustained economic growth, employment and decent jobs”, and goal 13, to “take urgent action to combat climate change and its impacts.”

Additionally, the Iberia-Cepsa collaboration is intended to align with the European Commission’s ‘Fit for 55’ climate agenda, which includes the ‘ReFuelEU Aviation’ initiative, designed to increase supply of and demand for aviation biofuels in the European Union by proposing SAF blending mandates of at least 2% by 2025, 5% by 2030, and 63% by 2050.

“To decarbonise the aviation sector, the development, production and distribution of sustainably-sourced fuels at affordable prices, and in sufficient quantity to supply airlines, is essential,” said Iberia CEO Javier Sanchez-Prieto.  “We are confident that this agreement with Cepsa will contribute to that goal.”

The CEO of Iberia Express, Carlos Gomez, added: “It is time to create synergies between companies that have the same objective: developing our business and operations while minimising our environmental impact. This agreement is an important step on our path towards more sustainable air transport.”

Cepsa has two well-resourced global shareholders to help fund SAF development: Mubadala Investment Company, which is wholly-owned by the Abu Dhabi government, and US-based global private equity company The Carlyle Group. Together, they manage global assets valued at more than $536 billion.

“With this agreement,” said Cepsa and Iberia of their partnership, “the airline secures preferential access to a scarce fuel (biojet), and a competitive advantage for both customers and investors, thanks to better ratings on sustainability indexes. Other benefits include boosting the circular economy, increasing energy independence and ensuring an important driver of the Spanish economy. In addition, these fuels can be used immediately with existing supply infrastructures and without the need for fleet renewals.”

The reference by Cepsa and Iberia to investor sustainability ratings is clear acknowledgement of the growing attention being paid by investors and major fund managers to corporate sustainability programmes and outcomes, as consumers increasingly factor into their purchases the environmental action strategies of suppliers. Late last year, aviation data group CAPA and carbon reduction consultancy Envest Global produced The Airline Sustainability Benchmarking Report, which found corporations, and increasingly individual consumers, were sourcing their air travel not just based on typical features such as price and schedule, but also on the climate action strategies and performance of specific airlines (see article). The report highlighted climate activism by shareholders and investors as “an existential threat” to airlines with poor sustainability strategies, and warned that “multiple airlines” could fail in the next three to five years if they did not demonstrate meaningful commitment to decarbonising their operations.   

Photo: Iberia

Sixty companies in the World Economic Forum’s Clean Skies for Tomorrow Coalition have signed a commitment to accelerate the supply and use of sustainable aviation fuel to reach 10% of global jet aviation fuel supply by 2030. Signatories represent a global group of airlines, airports and fuel suppliers, as well as non-aviation companies that rely on corporate air travel for their business operations and which recognise decarbonising aviation lies with all that depend on it. With the current commercial production of SAF at less than 0.1%, significant scale-up must take place to meet this target, writes Susan van Dyk. The problem is the high cost of SAF, and producers and carriers alone are unable to carry the burden, said Lauren Uppink Calderwood, Head of Aviation, Travel and Tourism Industries at WEF. The commitment represents support for the UN High Level Climate Champions’ 2030 Breakthrough Outcome for aviation, one of over 30 sectoral near-term targets deemed critical to halving emissions by 2030 and delivering the promise of the Paris Agreement, said WEF.

Development of a new generation of hybrid-electric and hydrogen-powered aircraft could help reach the next efficiency level, but deployment at scale would take time and initially focus on the short to medium range, while SAF is the most promising option to significantly reduce the aviation industry’s carbon emissions in the near term, and for long-haul flying, even beyond 2050, said the coalition’s members in a statement.

SAF is critical, Jonathon Counsell, Group Head of Sustainability at International Airlines Group (IAG), told a press conference to announce the commitment alongside Heathrow Airport CEO John Holland-Kaye and Shell’s President of Global Aviation, Anna Mascolo, held during WEF’s Sustainable Development Impact Summit. The three organisations are steering committee members of the Clean Skies for Tomorrow (CST) initiative.

They acknowledged the 10% target was challenging, but said scale-up could be achieved with the right policies. “Yes, it’s ambitious – we are talking 30 million tonnes by 2030 – but with the right policies in place we can deliver that,” indicated Counsell. “This will get us on the trajectory to deliver a truly sustainable industry by 2050.”

Said Mascolo: “We have real momentum now to make a difference. Shell is committed to supplying 10% SAF by 2030 on all its sales of jet fuel and is making investments into SAF facilities. It has committed to supplying 2 million tonnes of SAF per year by 2025.”

According to Holland-Kaye, the 10% target “is only a milestone and will probably improve”. He added: “The critical thing is that we make progress really quickly. If we don’t break the back of this in the next decade, we will have no chance of reaching net zero by 2050. This is the decade for transforming the energy supply chain.”

They highlighted the role of policy in order to reach the target. “Policy is absolutely the enabler to get these plants built and must address three aspects,” said Counsell. “It must create a demand signal, create price stability by using a mechanism such as contracts-for-difference and reduce the capital risk through, for example, loan guarantees. We welcome the progress that we have seen in the last few months in the US, EU and UK but we will need additional policy to attract the investment to get these plants built. The proposed US blenders tax credit is probably in the lead for effectiveness in encouraging investment.”

Holland-Kaye believes the right policies can unlock billions of dollars in financing. “Banks have told me SAF is one of the most investible sectors they have seen. It’s very simple – all you need is the mandate and the price stability mechanism and that will unlock the financing to make this transformation happen.” He also called for a greater commitment at ICAO’s Assembly in 2022 to target net-zero emissions by 2050.

“Achieving our ambition will require commitment, innovation and cross-industry collaboration from a wide range of stakeholders,” said Uppink Calderwood. “We are calling on governments, international organisations and others to work with us to take important steps forward through new policies, targeted investments and regulations that create a level playing field while incentivising transformation. Together we can take a giant leap towards the decarbonised, sustainable and affordable aviation industry needed for our global future.”

One of the signatories to the 10% by 2030 pledge, and a member of the CST steering committee, is Indian carrier SpiceJet. “Our announcement emphasises our commitment to the planet and prosperity,” said CEO Ajay Singh. “Upscaling SAF with a global approach will boost India’s economy. Accelerating the SAF industry with a global approach will bring opportunities for economic growth and transformation in India.”

Photo (Boeing): Indian airline SpiceJet is one of the signatories to the 10% by 2030 SAF commitment

Susan van Dyk

GreenAir Correspondent

www.svdconsulting.ca

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International Airlines Group (IAG) has set an ambitious target to power 10% of its flights with sustainable aviation fuel (SAF) by 2030 and enable it to cut annual emissions by two million tonnes. To meet the commitment, IAG, which is made up of British Airways, Iberia, Iberia Express, Level, Aer Lingus and Vueling, will need to purchase one million tonnes of SAF annually. This will come from SAF offtake deals it already has in the works with partners Velocys and LanzaJet, but it will need many more and IAG is relying on government policy support in the UK, Europe and beyond to attract the necessary investment to construct the sustainable aviation fuel plants to deliver enough supply, reports Mark Pilling. “This will make a material contribution to the one million tonnes and we have a number of other projects that we are working on in different countries since, as you can appreciate, we uplift fuel in many destinations,” the airline group told GreenAir.

“With the right policy in place in the next ten years, up to 14 plants could be built across the UK, creating 6,500 jobs and saving 3.6 million tonnes of CO2 per annum,” it said. “These plants will play a significant role in meeting this target but we’re also looking to secure the supply of sustainable aviation fuels from other countries.

“Without appropriate government policy, the fuel plants won’t be built, which means we won’t be able to secure the supply to meet our target. We will also work with our industry partners to encourage investment in supply capacity around the world.”

Luis Gallego, IAG´s Chief Executive, said: “For more than a decade, IAG has led the airline industry’s actions to reduce its carbon footprint. It’s clearly challenging to transition to a low carbon business model but, despite the current pandemic, we remain resolute in our climate commitments.”

Welcoming IAG’s commitment, Henrik Wareborn, Chief Executive of Velocys, said: “Our planned Altalto waste-to-jet-fuel plant will be the UK’s first SAF facility and could be fuelling transatlantic flights in just five years’ time, with no need to modify aircraft or engines at all. Velocys high performance catalyst and reactor technology, with the integration of carbon capture, can generate negative-carbon-emissions SAF – essential for any net zero strategy.”

Grant Shapps, the UK government’s Transport Secretary, said: “Just this week, we’ve set the world’s most ambitious climate change target, and IAG’s agenda-setting commitment is clear evidence of the progress we are making. These kinds of initiatives, along with our work through the Jet Zero Council, will help us rapidly accelerate towards our net zero targets as we build back better out of the pandemic.”

IAG said it is investing $400 million in the development of SAF over the next 20 years, including its partnerships with LanzaJet and Velocys. This includes the Velocys Altalto plant in the UK which is slated to start operations in 2025. British Airways will also purchase SAF from LanzaJet’s US plant to power some of its flights from late 2022.

In addition, IAG said it will become the first airline group worldwide to extend its net zero commitment to its supply chain. The group will be working with its suppliers to enable them to commit to achieving net zero emissions by 2050 for the products and services they provide to IAG.

Photo: Velocys

Mark Pilling

Contributing Editor

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