Aviation technology group SITA has expanded a partnership with the Arab Air Carriers Organization (AACO) to develop a planning tool which helps airlines reduce aircraft fuel consumption, emissions and operating costs, and more easily comply with complex and increasing environmental regulations. SITA Eco Mission was developed over a year through collaboration with AACO and three of its member airlines to streamline collection and assessment of information which carriers need to report as part of their environmental compliance obligations. Abdul Wahab Teffaha, AACO’s Secretary General, said the product had grown from a need for airlines to manage increasingly complex sustainability requirements, while also providing transparency to both regulators and customers.

“This is a step in the right direction in the journey of airlines’ quest to deliver on their environmental sustainability objectives,” he said.

Added SITA CEO David Lavorel: “As we face unprecedented environmental challenges, achieving sustainability in aviation demands more than compliance. It calls for a visionary approach.”   

The extended collaboration between Geneva-based SITA and AACO, which represents 37 airlines, began late last year when the two signed a Memorandum of Understanding to jointly develop a prototype of a data-driven system enabling carriers to simplify and automate reporting processes to meet their environmental compliance obligations.

The new system was also required to help cut the costs of meeting sustainability requirements, while enabling airlines to plan more efficient operations with lower emissions.

The resulting product, SITA Eco Mission, is a ground-based platform that collects data including flight schedules and fuel information from airlines’ internal systems and other information such as commodity prices and regulatory updates from a wide range of external sources.

The information is then consolidated, assessed and optimised by SITA, and delivered as data-backed insights to the relevant key departments of customer carriers to assist them in meeting their efficiency, financial and sustainability targets.

“The aviation industry remains at a critical crossroads as it works to reduce its carbon footprint and meet global sustainability targets, all while navigating increasing regulatory pressure,” said SITA.

“As the aviation industry adapts to increasingly complex regulations such as the European Union’s ReFuelEU Aviation mandate and ICAO’s CORSIA, airlines must balance emissions reduction with cost management.

“The continued partnership between SITA and AACO is focused on delivering the data-driven solution needed to simplify and automate compliance and reporting, streamline data collection and analysis, reduce the costs associated with becoming more environmentally friendly and help airlines plan their future operations so that they can meet their cost and emission targets.

“More so, the solution will support airlines in moving beyond a tactical, reactive approach, helping with smarter strategic environmental management across three key airline functions – Compliance; Strategy and Finance; and Flight Operations.”

During the past year, SITA collaborated with three AACO member airlines, which it did not identify, working with members of these functions to jointly chart what was required to navigate complicated regulations governing sustainable operations.

SITA then took the airlines’ feedback and worked with a technology user experience team to develop proof of concept for the Eco Mission product, which was taken back to the airlines for feedback and further refinement over several months.

The new planning tool has now been formally launched, and SITA expects global deployment from next year, when the EU will require all jet fuel provided at its airports to include at least a 2% blend of sustainable aviation fuel.

AACO’s Teffaha said the work performed by SITA and his member airlines had delivered a solution “invaluable not only to AACO airlines but also to the airlines of the world. This is a step in the right direction in the journey of airlines’ quest to deliver on their environmental sustainability objectives.”

Added Lavorel: “Together with AACO, we are advancing a solution that tackles these challenges directly, paving the way for a fresh, practical approach to environmental responsibility that moves the industry closer to its goals.”

Meanwhile, key AACO member Qatar Airways has strengthened its sustainability partnership with Brisbane-based Virgin Australia, a commercial ally of which it has announced plans to acquire a 25% stake, subject to regulatory approval.

The airlines have signed a MoU to expand their partnership, enabling them to collaborate on advancing sustainable aviation fuel and low carbon aviation fuel in Australia through measures including exploring certification, production and commercial use of the products.

“This MoU not only further strengthens the strategic partnership between Qatar Airways Group and Virgin Australia, but also cements the shared commitment towards achieving our common objectives in the area of sustainability,” said Qatar’s SVP Aeropolitical and Corporate Affairs, Fathi Atti.

Editor’s note: AACO Secretary General Abdul Wahab Teffaha and Igor Dimnik, VP Product, SITA will be speaking at Aviation Carbon 2024 in London on November 25/26.

Photo: Qatar Airways has expanded its sustainability partnership with Virgin Australia

Tony Harrington

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Fresh from hosting the UN’s COP28 global summit on climate change, the government of the United Arab Emirates has announced a guideline that by 2031, at least 1% of total fuel supplied at UAE airports to the nation’s airlines will be locally produced sustainable aviation fuel. Following a post-COP28 cabinet meeting, the government also confirmed the UAE aims to produce 700 million litres of SAF per year by 2030, and that a “national regulatory environment for SAF” would be developed. It was not specified if UAE-based airlines or others would be obliged to use the SAF. However, the government’s National SAF Roadmap to 2050, released last year, lays out a strategy to produce the fuel at up to five facilities in the UAE, plans to become a major SAF exporter and an ambition to become recognised as a global leader in, and authority on, SAF.

The UAE hosted the recent COP28 climate summit and ICAO’s third Conference on Aviation Alternative Fuels (CAAF/3) in Dubai, as well as IATA’s Energy Forum in Abu Dhabi. Countries at CAAF/3 agreed a global framework that included an overall 5% reduction in the carbon intensity of aviation fuel consumption by 2030.

The UAE has six international airlines and eight international airports. Dubai-based Emirates is both the nation’s biggest airline and the world’s largest operator of international flights, eclipsing the Abu Dhabi-based national carrier, Etihad, and low-cost airlines FlyDubai, Air Arabia, Air Arabia Abu Dhabi and WizzAir Abu Dhabi, a partnership with European LCC WizzAir.

Based on scheduled airline seats, global aviation data group OAG has also consistently ranked Dubai as the world’s busiest international aviation hub and the second busiest for total flights, marginally behind Atlanta’s Hartsfield International Airport. Its December 2023 assessment reconfirms this.

The UAE’s 1% SAF Guideline and 2031 timing for deployment at its own airports were outlined in a statement to the official Emirates news agency WAM by Ahmed Al Kaabi, Assistant Under-Secretary for the Electricity, Water and Future Energy Sector at the Ministry of Energy and Infrastructure, and chairman of the UAE Sustainable Fuel Committee.

WAM reported that Al Kaabi had confirmed the policy was “the first of its kind in the Middle East, with a target of having at least 1% of the total fuel supplied at UAE airports to UAE airlines be sustainable and produced locally by 2031. Locally-produced SAF will provide added value and bolster research and development efforts, while utilising cutting-edge technology in producing SAF.”

The statement also advised that the Ministry was working with “competent authorities, including the General Civil Aviation Authority (GCAA), to develop implementation plans to ensure the objectives of the guideline are achieved,” including producing 700 million litres of SAF by 2030.

The 1% SAF stipulation for UAE airports and airlines is conservative when compared with the production potential the country has identified in its National SAF Roadmap, which indicates that commercial production of the fuel could commence by 2025.

The scale and schedule for proposed deployment are also at odds with a string of ambitious announcements by the country and companies within it before and during COP28, and significantly lower than targets in other markets, specifically the European Union, where SAF blending mandates will begin at 2% in 2025, rising to 6% in 2030, then 20% in 2035, 34% in 2040, 42% in 2045, and 70% in 2050. However, the EU mandate, with the UK shortly to set a similar policy, does not specify the SAF used must be locally produced.

Major airlines in many markets have committed that by 2030, SAF will comprise between 5% and 30% of the jet fuel they use, while members of the oneworld alliance have signed up for 10%, and the 14-members of the Association for Asia Pacific Airlines have collectively agreed to 5%, with some independently exceeding that figure.

In the past year, Emirates – whose CEO, Sir Tim Clark, has previously expressed doubts the airline industry will achieve its decarbonisation targets – established a $200 million fund to support sustainable aviation innovation, performed two test flights in which aircraft engines were powered by 100% SAF, and announced multiple highly-publicised deals to procure imported SAF.

While it says little about the nation’s plans to deploy the fuel in its home market, the UAE National SAF Roadmap highlights opportunities to exploit demand for SAF in other markets.

It specifies SAF will be produced at up to five plants in the UAE, using three development pathways: the conversion of oils from saltwater-tolerant plants grown in Abu Dhabi, transformation of municipal solid waste to low emission fuel, and power-to-liquid fuels using solar-generated electricity.

“Some of this production could be exported to make use of more mature policies regimes, for example in the European Union, and allocating half of this supply for export opportunities could provide a cumulative $1.7 billion of export revenue for the UAE by 2030,” says the Roadmap report. “This would further diversify the UAE’s economy and contribute to the nation’s current account surplus.”

Producing 700 million litres of SAF by 2030 would cost between $7 billion and $9 billion but reduce cumulative CO2 by an estimated 4.8 million tonnes and create up to 18,000 jobs “across the value chain”. 

“Aviation is a global industry, and alongside national efforts, the UAE will seek to accelerate the global transition through leadership at ICAO, and support of projects on renewable fuels and energy in other countries,” the report says.

“The UAE’s commitment to SAF development, highlighted by its ambitious roadmap, will put the nation as a global leader within the sustainable aviation transition.

“The UAE is uniquely positioned to lead global discourse on SAF production and utilisation as part of wider climate change action.    

“Beyond COP28, by leveraging its world leading international aviation sector, the UAE can host ICAO, IATA and CAEP (Committee on Aviation Environmental Protection) conferences, reinforcing its position as an authoritative voice within the sustainable aviation movement.”

Image: Emirates

Tony Harrington

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Emirates will acquire more than 300,000 gallons (1.14 million litres) of blended sustainable aviation fuel from Shell Aviation, with supplies flowing to the airline’s home base, Dubai International Airport, by the end of this year. As part of the agreement, Emirates will track delivery and its use data through the blockchain-powered SAF solution Avelia. The SAF will be the first delivered through the fuelling system at the airport, the world’s largest international hub. The deal follows a demonstration flight earlier this year by an Emirates Boeing 777 with one engine 100% fuelled by SAF, and the airline’s establishment of a $200 million investment fund to support R&D into projects designed to reduce the impact of fossil fuels in aviation. Dubai will next month host the Dubai Airshow, the third ICAO Conference on Aviation and Alternative Fuels and the UN’s COP28 climate summit.

The SAF deal coincides with the reactivation after Covid-19 of most of Emirates’ passenger fleet of Airbus A380s and Boeing 777-300ERs. It is the largest operator of both types, with a large proportion of its flights on long-haul routes, for which SAF is considered the only realistic pathway to decarbonisation.

While details of the Shell agreement, including the source of the fuel, feedstock type and delivery schedule were not disclosed, the companies said Emirates would purchase the SAF and the associated environmental attributes through the Avelia programme operated by Shell Aviation and Accenture, which authenticates and documents SAF from production to introduction into airport fuel infrastructure.

Additionally, backed by Energy Web and American Express Global Travel, Avelia connects airlines and the procurement arms of corporations, enabling those businesses to contribute to the cost of SAF through an authenticated book-and-claim process, to help compensate for the proportion of flight emissions generated by their employees’ business travel.

As well as enabling Emirates to reduce its Scope 1-related emissions from flight operations, the Scope 3 environmental attributes associated with the fuel will be purchased by Shell Corporate Travel, not only to help recompense emissions from corporate flying by its own employees, but also to demonstrate how book-and-claim programmes can connect airlines and corporations, and enable both to leverage the environmental benefits of SAF.

Sir Tim Clark, Emirates’ President – who has previously expressed doubts about aviation’s ability to achieve net zero emissions by 2050 – welcomed the Shell deal and flagged more SAF agreements.

“We are proud to work in partnership with Shell to make a SAF supply available for Emirates in Dubai for the first time,” he said, “and to utilise the Avelia platform that provides business travellers the flexibility to align their sustainability targets and reduce their environmental footprint when travelling.

“We hope that this collaboration develops further to provide an ongoing future supply of SAF at our hub, as there are currently no production facilities for SAF in the United Arab Emirates.

“Aviation plays a vital role in Dubai and the wider UAE economy, and we look forward to continue collaborating with like-minded organisations and government entities to look at viable solutions that introduce more SAF, a fuel that is currently extremely limited in supply, into the aviation fuel supply chain and support Emirates’ efforts to reduce emissions across our operations.”

Chu Yong-Yi, VP of Shell Corporate Travel, said the Emirates SAF deal was a step forward for aviation in the UAE, adding: “Emirates and Shell have a long-standing commercial relationship, and it is fantastic to build on this to now work together on decarbonisation.

“Enabling SAF to be suppled at DXB (Dubai’s main airport) for the first time is an important milestone, and a perfect example of how the different parts of the aviation value chain have a role to play in unlocking progress on SAF. We hope that this can act as a springboard for more action on SAF across the aviation industry in the UAE and region, delivering another step forward for our net zero emissions journey.”     

 In May, Emirates announced a three-year, US $200 million commitment  to fund research and development projects which focus on reducing the impact of fossil fuels in the aviation industry. The airline specifically identified partnerships with organisations focused on advanced fuel and energy technologies. 

Announcing the programme, Clark said Emirates “looked long and hard at the reality we face in commercial aircraft and engine technology, fuel supply chain and our industry’s regulatory and eco-system requirements. It’s clear that with the current pathways available in terms of emissions reduction, our industry won’t be able to hit net zero targets in the prescribed timeline.

“We believe our industry needs better solutions, and that’s why we’re looking to partner with leading organisations on R&D. Our aim is to contribute meaningfully to practical solutions for the long-term sustainability of commercial aviation.”

The airline has contributed to the development of the UAE’s Power-to-Liquid fuels roadmap and participated in the UAE’s National Sustainable Aviation Fuel Roadmap launched in January.

While it has previously used SAF to part-fuel specific flights including new aircraft deliveries, Emirates has focused mostly on large-scale fleet renewal and operational initiatives to reduce flight emissions. It has more than 200 new widebody jets on order, including Airbus A350, Boeing 787 and 777X passenger jets, and a mix of new 777 freighters and passenger-to-freight conversions.

Image: Emirates

Tony Harrington

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Dubai-based Emirates, which claims to be the world’s largest international airline, has pledged to invest $200 million over the next three years to help fund research and development into advanced fuel and energy technologies for commercial aviation. The airline says current programmes to decarbonise air transport are insufficient to deliver net zero targets within current timelines and wants to accelerate development of new solutions through this programme, which it claims is the biggest single commitment by any airline towards sustainability.  “We looked long and hard at the reality we face in commercial aircraft and engine technology, fuel supply chain and our industry’s regulatory and ecosystem requirements,” said Sir Tim Clark, Emirates Airline President. “We believe our industry needs better solutions, and that’s why we’re looking to partner with leading organisations on R&D. Our aim is to contribute meaningfully to practical solutions for the long-term sustainability of commercial aviation.” 

The Emirates initiative has been announced during the United Arab Emirates’ ‘Year of Sustainability,’ during which the nation will host events later this year that include the Dubai Airshow, the third ICAO Conference on Aviation and Alternative Fuels, and the UN’s COP28 climate change summit.

The R&D commitment also follows a test flight from Dubai earlier this year in which an Emirates Boeing 777-300ER jet operated with one of its two GE90 engines powered by 100% sustainable aviation fuel. The airline said the test, in partnership with Boeing, GE Aerospace, Honeywell and renewable fuel companies Neste and Virent, was a proof-of-concept demonstration, as the air transport industry pursues regulatory approval to operate commercial flights with 100% SAF, twice the current limit of 50%.

Emirates is also a partner in multiple working groups and stakeholder engagements, and recently contributed to the development of the UAE’s power-to-liquid fuels roadmap, announced last year, and the National Sustainable Aviation Fuel roadmap launched in January this year.  

However, the airline argues the global scarcity of SAF also demands fast action to find alternative, complementary paths to decarbonisation. “Bio-based SAF, currently the only type of commercially available SAF, is extremely limited in supply,” it said. “IATA estimates the entire world’s annual supply of SAF meets less than 0.1% of airlines’ needs.”

Through the funding initiative, Clark indicated Emirates would identify partnerships with key organisations focused on projects to advance new fuel and energy technologies. “We are ring-fencing $200 million to invest in advanced fuel and energy solutions for aviation, which is where airlines currently face the biggest impediment in reducing our environmental impact,” he said. “It’s clear that with the current pathways available to airlines in terms of emissions reduction, our industry won’t be able to hit net zero targets in the prescribed timeline.

“Until viable solutions can be found, Emirates will continue to implement environmentally responsible practices through our business, including uplifting SAF where feasible, ensuring efficient fleet operations and inducting modern aircraft into our fleet. Our fund is earmarked for R&D and not for operating costs like the purchase of SAF or carbon offsets to tick regulatory boxes – activities we consider business-as-usual.”

Distribution of the research funds will be managed by the Emirates Environmental Sustainability Executive Steering Group, with the support of external technical experts.

The airline, which currently operates 260 Airbus A380 and Boeing 777 aircraft, has additional orders for 200 new, more fuel-efficient jets including Airbus A350s, which are due to arrive from next year, and others including the Boeing 777X. It also practices a wide range of operational measures including ‘flex tracks’, in which it partners with air navigation service providers to identify and follow optimised routes, and airport practices including the use of ground power instead of aircraft auxiliary power units and reduced use of engine power for taxiing.

The Emirates initiative is the latest in a series of sustainability partnerships by major carriers including United Airlines, which has also established an investment fund to support new technologies for sustainable aviation.

Photo: Emirates

An Emirates Boeing 777-300ER has performed a demonstration flight using 100% sustainable aviation fuel to power one of its two GE90 engines. The flight on 30 January was the latest initiative in an industry campaign to secure regulatory approval for flights fully powered by SAF. Currently, the maximum allowed is a 50% blend with conventional jet fuel. It was conducted in partnership with Boeing, GE Aerospace, Honeywell and renewable fuel companies Neste and Virent. The flight, which followed the Dubai coastline for more than one hour, was a key initiative of the ‘Year of Sustainability’ declared by the UAE to highlight what it describes as a commitment to and capability of delivering innovative responses to energy challenges, climate change and other sustainability issues. Emirate’s first flight with blended SAF was in 2017, on a Boeing 777 flying from Chicago, and in 2020 SAF was used to part-power the delivery flight of an A380.

“This is a milestone moment for Emirates and a positive step for our industry as we work collectively to address one of our biggest challenges – reducing our carbon footprint,” commented the airline’s COO, Adel Al Redha, who travelled on the test flight. “Emirates is the first passenger airline in the world to operate a Boeing 777 powering a GE engine with 100% SAF,” he said. “Such initiatives are critical contributors to industry knowledge on SAF and provide data to demonstrate the use of higher blends of SAF for future regulatory approvals. We hope that landmark demonstration flights like this one will help open the door to scale up the SAF supply chain and make it more available and accessible across geographies, and, most importantly, affordable for broader industry adoption in the future.”

The weight and lack of sufficient range for batteries and the immaturity of hydrogen as a near-term source of low emission propulsion, mean SAF is the only viable option to decarbonise large aircraft such as the Boeing 777 or the Airbus A380, both of which Emirates is the largest operator.

To perform the demo flight, the first in the Middle East and Africa to operate with 100% SAF, the airline worked with its partners to procure and develop a blend that closely replicated the properties of conventional fuel. Once a blend ratio was reached which reflected the characteristics of jet fuel, 18 tonnes of SAF were produced for use on the flight.

The SAF was comprised of hydro processed esters and fatty acids and synthetic paraffinic kerosene (HEFA-SPK), supplied by Finland-based Neste, and hydro deoxygenated synthetic aromatic kerosene (HDO-SAK) from US-based Virent. Neste’s ’drop-in’ SAF is mainly produced from waste fats, oils and greases, then blended with conventional fuel, while Virent converts widely-available plant-based sugars into compounds which enable the production of 100% SAF, without a requirement for blending. Virent used its BioForming process to produce the SAK, a critical component that made the 100% SAF possible, as today’s SAF – typically made from used cooking oil or other plant-based oil feedstocks – has to be blended with conventional jet fuel because they lack the aromatics required to meet jet fuel specifications. The Virent product was used to help other 100% SAF-powered demo flights conducted by United Airlines in December 2021 and Gulfstream in December 2022.

“SAF will play a critical role in the aviation industry’s commitment to be net zero by 2050, requiring strong industry collaboration,” said Omar Arekat, Boeing’s VP Commercial Sales and Marketing, Middle East.

Added Aziz Koleilat, VP Global Sales and Marketing for GE Aerospace in the Middle East, Eastern Europe and Turkey: “Collaborations like this to test 100% SAF globally will help bring us closer to this target.”

Honeywell Aerospace, which produces the auxiliary power unit for the Boeing 777, also participated in the Emirates SAF trial. “The APU provides main engine starting, environmental control and emergency back-up systems for the aircraft on the ground and in flight. It uses the same fuel as the main propulsion engines,” said Mosab Alkubaisy, Director of Airlines for Honeywell Aerospace, Middle East. “Currently the APU is certified to run only on 50% SAF, so this demonstration is a big first step in showing full APU functionality and capability when running on 100% SAF.”

Jonathan Wood, Neste’s VP Europe, Middle East and Africa, Renewable Aviation, said sustainable fuel played a key role in cutting aviation’s emissions, “but to fully leverage its decarbonisation potential we need to enable 100% SAF use.” He reported Neste was working closely with partners to speed up the supply and use of SAF as the company prepared to increase its production capacity to 1.5 million tonnes per year with the commissioning of new production facilities in Singapore and Rotterdam. “We look forward to growing the supply of SAF also to Dubai,” he said.

Virent’s President and General Counsel, Dave Kettner, welcomed the opportunity to demonstrate “that we can power sustainable aviation without modifying today’s modern airline engines or the infrastructure that serves the airline industry. Along with our parent company, Marathon Petroleum Corporation, we are committed to meeting today’s energy needs while investing in an energy-diverse future.”

Saif Humaid Al Falasi, Group CEO of the Dubai government-owned Emirates National Oil Company (ENOC), said: “We prioritise working closely with our strategic partners to implement a national roadmap for sustainable aviation fuel. This not only aims to accelerate the decarbonisation of the aviation sector, but also contributes to achieving the UAE’s goals in climate neutrality, enhances the efficiency and conservation of fuel, as well as positions the UAE as a regional hub for sustainable aviation fuel. Playing an active role in supplying Dubai Airports with aviation fuel, ENOC Group is participating in this achievement by securing and blending sustainable aviation fuel, which will help to secure this type of fuel in the UAE in the future.”

Emirates has 134 passenger and freight variants of Boeing 777 aircraft flying 119 routes, from the 349 km Dubai-Muscat sector to the 12,940 km journey between Dubai and Dallas Fort Worth. Aviation data group OAG has just ranked Dubai International Airport as the world’s second busiest global hub in 2022, after Atlanta Hartsfield-Jackson.

Photo: Emirates

Weather prediction and navigational technology developer SATAVIA is partnering with AirCarbon Exchange (ACX) to support trading of carbon credits generated by SATAVIA’s contrail prevention technology. The company’s atmospheric modelling enables aircraft operators to optimise flight plans for avoiding contrails, which contribute substantially to aviation’s non-CO2 climate impact. The subsequent climate benefit, say the partners, can be converted into tradable carbon credits in a new market they estimate could be worth up to $9 billion at current nominal voluntary carbon pricing, which is forecast to rise tenfold by 2030. A first ACX trade to monetise contrail prevention activity coincided with a number of sustainability initiatives carried out by SATAVIA’s commercial partner Etihad during the week leading up to Earth Day last month that included optimising multiple flight plans for contrail prevention. Etihad undertook research and testing on over 30 flights covering operational efficiencies, as well as testing technology and procedures to reduce carbon emissions. The Abu Dhabi-based carrier also released its sustainability report for 2020-2021 that outlines the impact the airline has had on the environment and details of its Greenliner and Sustainable50 programmes.

Commenting on the new partnership with ACX, SATAVIA CEO Adam Durrant said: “Credits are already available to offset aviation’s direct CO2 emissions but direct emissions only account for about a third of the sector’s climate impact. Generating tradable credits for indirect impacts arising from aircraft contrails is a big step forward in attempts to decarbonise aviation as a sector, creating commercial incentives for operators to enable smarter, greener flying.”

The company describes its DECISIONX:NETZERO platform as a software solution “with immediate applicability and near-term returns”. It adds: “By engaging in contrail prevention activity, eco-conscious operators like Etihad will now be able to generate commercial returns from climate-friendly operations, helping to support commercially sustainable green aviation.”

Launched in 2019, ACX is a global exchange for the voluntary carbon market, with a client base comprising corporate entities, financial traders, carbon project developers and other industry stakeholders.

“Our ground-breaking blockchain architecture is a great fit with SATAVIA’s disruptive tech-led innovation and I look forward to supporting greener aviation with further trades in the months and years to come,” said ACX Managing Director and Co-founder, William Pazos.

The $9 billion carbon market valuation is based, say the partners, on scientific research suggesting aircraft contrails generated up to 1.8 billion tonnes of CO2e in pre-Covid 2019.

“Low-hanging fruit of this magnitude doesn’t come along very often,” commented Pazos.

Etihad’s week-long programme included around 20 commercial flights operating across its network to test SATAVIA’s contrail avoidance technologies as part of the year-long partnership. It also operated dedicated ‘EcoFlights’ involving A350 and Boeing 787 aircraft, including the Etihad Greenliner and the airline’s newest Sustainable50 aircraft, to test a range of flight and engine optimisation initiatives, with trials proving successful to be incorporated into regular scheduled operations.

“The results we develop will add to the body of work and knowledge base we’ve built to support the aviation industry on its journey to decarbonisation,” said Etihad Group CEO Tony Douglas.

According to Etihad’s 2020-2021 Sustainability Report, the group’s carbon emissions fell from around 9.8 million tonnes in 2018 to 4.3 million tonnes in 2020 and 2021, a 56% reduction, largely as a result of the Covid pandemic. Etihad has a target to achieve a 20% reduction in emissions intensity in its passenger fleet by 2025, cut 2019 net emissions by 50% by 2035 and reach net zero emissions by 2050.

Other activities during the reporting period include Etihad becoming the first airline to secure commercial finance based on verified compliance with the UN Sustainable Development Goals and the raising of $1.2 billion in the first sustainability-linked loan tied to ESG targets in global aviation.

“Our sustainability report highlights our insistence on harnessing the opportunities that are available today and commits to continuing to find solutions for the future,” commented Douglas. “Many partners joined us on this journey over the last two years and this report demonstrates the potential we have collectively, with an ambition to set the direction for 2022 and beyond.

“We need to be bold in facing this issue. We need to be decisive. There is no other way forward. That is why we have been insistent that we continue to focus on the question as a long-term strategic priority for our business, spearheaded by the Etihad Greenliner and Sustainable50 programmes.”

Photo: Etihad Boeing 787

Two prominent themes emerged at the 2021 Dubai Airshow: recalibration and decarbonisation. With recovery now underway in the air transport industry, confidence was in abundance, with major orders for passenger and freighter aircraft accompanied by the ubiquitous deployment of the word ‘sustainable’, as the air transport industry zeroed in on net zero, while simultaneously increasing operations post-pandemic, reports Tony Harrington. For the first time outside the United States, Boeing displayed and demonstrated its super-efficient but delayed 777-9 widebody, ordered by major customers including all three big Gulf carriers, Emirates, Qatar Airways and Etihad. The latter announced it was renewing and expanding its Greenliner sustainability programme – currently focused on the airline’s GEnX-powered Boeing 787 aircraft – to include its Rolls-Royce XWB-powered Airbus A350 fleet. Building on its 2020 commitment to achieve net zero by 2050, UAE national airline Etihad revealed during the air show interim targets to reducing emissions intensity and volumes, and signed a number of sustainability-focused agreements.

It announced that by 2025, the carrier would reduce its fleet emissions intensity by 20% and by 2035 it would halve its 2019-equivalent emission volumes, en-route to the net zero 2050 target.

Etihad’s first of five Airbus A350-1000s, which rolled off the production line and into storage prior to the Covid outbreak as the airline restructured its operations, was unveiled at the show in a ‘UAE50’ livery in recognition of the 50th anniversary of the federation of the UAE and Etihad’s net zero by 2050 commitment. Last month, the UAE announced the UAE Net Zero by 2050 Strategic Initiative, making it the first nation in the Middle East to commit to the emissions goal.

Tony Douglas, CEO of Etihad Aviation Group, said “there was no silver bullet, no obvious, single act” that would decarbonise aviation. “It’s going to require the combination and the sum of many different organisations and governments working together for small, incremental improvements,” he said. “Governments and regulators must help the industry to drive innovation for long-term solutions to decarbonising aviation. Support is needed for development of affordable and sufficient supply of sustainable fuels. Optimising flight paths on the busiest routes in the world would prevent untold amounts of CO2 from being pumped into the atmosphere. There is a big opportunity here that doesn’t require any new technology to implement and could be implemented today if there was a will.”

The renewal of the agreement with Boeing and GE will see them exploring opportunities to test new propulsion technologies that lower emissions. The partnership with Airbus establishes a formal framework to collaborate across a number of core areas on Etihad’s A350 fleet to improve environmental performance, specifically the promotion and commercialisation of sustainable aviation fuel, waste and weight management, and the development of data driven analysis. The agreement with Rolls-Royce will look to maximise the potential of the XWB engine as well as targeting the application of electrification technologies and hybrid systems, together with the use of electric motors for commuter aircraft and the emerging urban air mobility sector.

Additionally, Etihad signed MoUs in Dubai to collaborate with UK-based Satavia, which uses data to optimise flight plans and reduce aircraft-generated contrails and CO2, with Tadweer, the Abu Dhabi Waste Management Centre, to jointly explore opportunities to convert commercial, industrial and municipal solid waste into sustainable aviation fuel, and also with The Story Group, to plant mangrove trees in Abu Dhabi’s Jubail Mangrove Park as part of the airline’s carbon offsetting strategy.

Meanwhile, Emirates and GE Aviation also signed a MoU to test fly a GE90-powered 777-300ER with 100% sustainable aviation fuel (SAF) by the end of 2022. John Slattery, CEO of GE Aviation, said the engine manufacturer was committed to developing emission reduction technologies for both in-service and new aircraft, while Emirates COO Adel Al Redha said the partnership was “an important step” towards securing certification of 100% SAF flights.

The airline received its first A380 powered by SAF in December 2020 and, with the support of Swedavia’s Biofuel Incentive Programme, also uplifted 32 tonnes of SAF for its flights from Stockholm earlier that year. Flights from Oslo have also begun operating on SAF under the Norwegian government’s SAF blending mandate policy.

New technologies to improve the sustainable performance of existing aircraft also featured at the Dubai show.

Among them, US-based Universal Hydrogen, which is developing kits to convert conventionally-powered turboprop aircraft to hydrogen-electric propulsion systems, has secured a letter of intent from Acia Aero Leasing for kits to convert 10 ATR-72 aircraft, and options for 20 additional kits for various turboprop types. Universal has developed hydrogen capsules, which can be transported via existing freight networks from hydrogen production facilities direct to airports and loaded into the aircraft they will power.

Lufthansa Technik (LHT) and BASF showcased their Aeroshark surface film, designed to reduce aircraft aerodynamic drag. The product features micro-riblets to replicate the skin of a shark, and initially will be applied to 10 Lufthansa Cargo Boeing 777s from early 2022, reducing carbon emissions by an estimated 11,700 tonnes per year. LHT also signed a MoU with Etihad that will explore digital solutions to further optimise the airline’s technical fleet and operations management, and boost fuel efficiency.

Boeing displayed the latest aircraft in its ecoDemonstrator programme, a Boeing 737-9 on loan from Alaska Airlines, which is being used to evaluate 20 safety and sustainability projects. 

As backdrops to the show, Airbus, Boeing and Embraer all released 20-year forecasts of air travel growth – globally, by region and by segment – with significant but varied predictions of requirements for new aircraft. Airbus estimates that by 2040, 39,000 new-build planes will be needed, 29,700 of them ‘small’ jets such as the narrowbody A220 and A320; 5,300 ‘medium’ A321XLR (extra-long range) narrowbodies or twin-aisle A330neos; and 4,000 large, long-range twins. Boeing goes higher with around 43,000, including 32,660 single-aisle jets, 2,390 regional jets and 7,670 widebodies. Regional specialist Embraer forecasts the need for 10,900 new sub-150 seat aircraft, 8,640 of them jets and 2,260 turboprops. In addition to opportunities to cut operating costs, all cited the need for airlines to decarbonise their operations as one of the key drivers of fleet renewal.

Photo: Dubai Airshow 2021 (© Mark Pilling)

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Etihad Airways has secured $1.2 billion through its first sustainability-linked loan (SLL) tied to environmental, social and governance targets (ESG), its third sustainable financing deal. The airline reported the transaction as the largest of its kind so far, taking to over $1.9 billion the total funds it has raised through ‘green’ instruments since 2019, and claims it is the first-ever SLL tied to ESG targets in the aviation sector, writes Tony Harrington. The national airline of the United Arab Emirates said the funds would be used for multiple, undisclosed initiatives as part of its Greenliner sustainability programme, through which it works with partners within and outside the aviation sector to reduce emissions. The funding partners for the loan were HSBC and First Abu Dhabi Bank, which structured and coordinated the deal. Etihad has committed to achieving net zero carbon emissions by 2050, with interim milestone goals set for 2025 and 2035.

“To underscore our accountability, we have committed to penalties and incentives of up to $5.5 million linked to our progress against key performance indicators,” said Adam Boukadida, Chief Financial Officer at Etihad Aviation Group. Typically, through such incentive-based facilities, interest payments or other loan-related costs increase or decrease, depending whether the borrower achieves or falls short of agreed performance targets.  

The environmental element of the latest loan commits Etihad to reducing the carbon intensity of its fleet of passenger aircraft, measured by CO2 emissions per revenue tonne kilometre flown. The airline currently operates narrow-bodied Airbus A320 and A321 aircraft, and wide-bodied Boeing 787-9, 787-10, and 777-300ER jets, with Airbus A350-1000s set to join the fleet and Boeing 777-9s on order.  The airline is phasing out its B777-300ERs and has grounded its fleet of 10 Airbus A380s.

The social element of the new loan relates to the airline’s Global Business Service Solution centre in Al Ain, UAE, designed to contribute to socioeconomic development of the community and to increase the employment and skills training of Emirati women, while the governance KPI is linked to the Integrity Score, a detailed measure used to assess internal culture and integrity.

“As a strategic partner and financier to Etihad in this transaction, FAB has demonstrated its sustainable financing expertise and contributed to the transition towards sustainability across the aviation sector,” said Martin Tricaud, Group Head of Investment Banking at First Abu Dhabi Bank (FAB), UAE’s largest bank. “We recognise the importance of the benefits and opportunities that can be brought about through sustainable finance.”

In 2020, Etihad raised $600 million through the first sustainability-linked transition sukuk, or Islamic bond, in global aviation, to support investments by the airline in its fleet to help reduce carbon emissions (see article).

The airline’s fleet-related sustainability initiatives last year also included offsetting all carbon emissions generated in 2021 by its themed Boeing 787-10 Greenliner aircraft, and the use of its newest 787-10 in Boeing’s ecoDemonstrator research programme, together with NASA and Safran Landing Systems, prior to delivery to the airline.   

In 2019, the airline raised €100 million ($116m) through its first sustainable financing, to help fund expansion of the Etihad Eco-Residence, a sustainable apartment complex for cabin crew based at its Abu Dhabi hub. This was also the first airline fundraising tied to compliance with the UN Sustainable Development Goals. 

Photo: Etihad Greenliner

Etihad Airways, the national airline of the United Arab Emirates, will mark the second anniversary of its Greenliner programme with a dedicated sustainable flight from London Heathrow to Abu Dhabi on October 23, showcasing a range of initiatives in the air and on the ground that reduce environmental impact, reports Tony Harrington. Using its signature ‘Etihad Greenliner’ aircraft, a themed Boeing 787-10, the airline expects to reduce total emissions of flight EY20 by 72%, and emissions per unit of payload by 56%, compared to the equivalent flight in 2019, at that time operated mainly with Airbus A380s. Among the features of the latest ‘eco flight’ will be a 38% blend of sustainable aviation fuel (SAF) and new technology designed by SATAVIA to minimise climate-warming aircraft contrails. A dedicated page on the Etihad website has been set up to encourage customers to book a journey on the flight and is running a competition offering a free seat.

The Etihad Greenliner programme, a partnership with Boeing and GE, was launched at the Dubai Air Show in 2019 to highlight the importance of industry collaboration in reducing aviation’s emissions. At a joint unveiling with Boeing of the ‘Greenliner’ aircraft livery, Etihad announced that scheduled flights with its entire fleet of Boeing 787-9 and 787-10 aircraft could be used by approved partners for collaborative research of efficiency and sustainability measures in real operating conditions.

Commenting on the October 23 flight, Tony Douglas, CEO of the Etihad Group, said: “This will put into practice all our learnings over the last two years of the Etihad Greenliner programme, which has allowed us to test SAF, eco-friendly products and a range of operational efficiencies, as well as reduce single-use plastic on board and practice optimised flight route planning and continuous descent.”

But he sounded a warning about impediments to achieving net zero emissions aviation.

“We understand that current and near-future technology can only take us and the aviation industry so far,” he said. “We urgently need to see fundamental advances in technology and support from governments and regulators across the world, so we can overcome the current challenges to reaching the industry target of zero emissions by 2050.” 

Among these was the price of SAF, which Douglas told a recent CAPA Live summit was too expensive and needed incentives to encourage airline uptake. “Unless the economics of this can be resolved,” he said, “it clearly isn’t going to be a sustainable part of the solution.”  

The Heathrow – Abu Dhabi flight, which typically takes six hours 50 minutes, will be preceded on October 23 by an aircraft exterior wash, to maximise aerodynamics and efficiency, and a dedicated foam wash for its two GEnX engines, a process developed in partnership with the engine manufacturer, GE. Fuel for the flight will incorporate a 38% blend of undisclosed sustainable product.

Etihad will use new software being developed by UK-based partner SATAVIA to model the formation of contrails, or emitted vapour trails, for the flight, which will be used to optimise routing and help eliminate surface warming generated by aircraft contrails at cruise altitudes.

Through the use of Boeing’s Jeppesen FliteDeck Advisor technology, the pilots will have access to real time data to help maximise the sustainable performance of the aircraft and in collaboration with air navigation service providers, an optimised route will be planned, including the most efficient climb profile from Heathrow, the best path and altitudes for the journey, and a continuous descent to Abu Dhabi.

To further improve fuel efficiency on the flight, Etihad will remove unnecessary weight from the aircraft by reducing the amount of potable water carried, demand for which varies by route and even by time of flight, according to previous research by the airline. Passengers also will be rewarded for flying without checked bags or with lightweight luggage, further reducing aircraft weight through more efficient packing.

On board, lightweight stainless-steel cutlery will be used, as will specially selected catering items including meal trays and crockery, menus will include vegan options, but exclude products including beef and palm oil, which are not produced sustainably. All passengers will receive personal water bottles instead of single use cups, reducing waste, which will be segregated for recycling in Abu Dhabi.

After landing, the aircraft will use single-engine taxi-in and be supported at the terminal by new electric-powered tractors to tow baggage and freight.

Information collected through the aircraft’s sensors will be analysed using tools from another Etihad sustainability partner, GE Digital, and the results added to the airline’s data bank to help pilots and engineers on future flights to recognise patterns of unsustainable activity, and to respond quickly.

In a further initiative to commemorate the special flight, the airline will plant in an Abu Dhabi mangrove plantation one tree for every passenger on the plane, a measure which follows its recent introduction of the CarbonClick programme, through which passengers can purchase offsets to help mitigate their share of flight emissions. The offsets were sourced through the Makame Savannah REDD Project created by Carbon Tanzania and compensate for approximately 80,000 tonnes of CO2, an amount which the airline said would take 100,000 trees one year to consume.

In addition to the special flight, other initiatives have also been used by Etihad this year to help meet a pledge to offset the total emissions generated by the signature Greenliner Dreamliner for the whole of 2021.

Etihad is phasing out its fleet of 19 Boeing 777-300ER passenger aircraft and has indicated that it is highly unlikely to recall all, or possibly any, of its 10 Airbus A380 super jumbos. Alongside its growing fleet of Boeing 787s, Etihad is also introducing more efficient and sustainable Airbus A350-1000 aircraft, as well new Boeing 777-9s.

Photo: Etihad Greenliner

UAE national airline Etihad Airways has pledged to reduce its CO2 emissions to 50% of 2019 levels by 2035 and achieve full net zero emissions by 2050, which it claims is a first for a Gulf airline and the first in the industry to set a mid-point target towards carbon neutrality. In initial steps towards the goal, Etihad has committed to neutralise the CO2 emissions of its flagship ‘Greenliner’ 787-10 aircraft for a full year of operations in 2021. Separately, the airline will implement an additional voluntary offset programme for passengers via its website booking platform in 2021. Etihad recently launched the first ever aviation ‘transition sukuk’, a form of Islamic sustainability-linked finance, raising $600 million that will support investment in next-generation aircraft and tied to performance in reaching the airline’s carbon reduction targets. In other Gulf news, Emirates has used sustainable aviation fuel (SAF) for the first time to power an A380 delivery flight.

Abu Dhabi-based Etihad has partnered with Respira for its Greenliner carbon offset programme and will initially purchase 80,000 tonnes of CO2 offsets in a Tanzanian forestry project. The Makame Savannah REDD project, developed by Carbon Tanzania, employs a community-based model to curb deforestation and promote better management of local natural resources across over 100,000 hectares in the southern extension of the Tarangire-Manyara ecosystem.

The scheme is verified and certified by Verra under its Verified Carbon Standard to ensure the carbon offsets are quantifiable, additional and fully sustainable. The scheme’s first offset vintages were certified in early November 2020. The Tanzanian project also conforms to Climate, Community and Biodiversity (CCB) Standards, which protect endangered species and local communities.

“Respira offers a fresh approach to the carbon market by aligning the interests of project developers, buyers and capital providers,” said Ana Haurie, CEO of Respira. “In this way, we create win-win outcomes for all stakeholders. It is a privilege to work with Etihad, which has shown real commitment to its sustainability goals through what is a challenging period for the airline industry.”

To support Etihad and Abu Dhabi’s long-term sustainability objectives, Respira will establish operations at the Abu Dhabi Global Market, the emirate’s international financial centre, in order to bring its offset expertise to the Middle East, said the company.

Commented Tony Douglas, Etihad Aviation Group CEO: “It’s encouraging to end a difficult year with such a positive move for the sustainable future of aviation. While the year brought many challenges, sustainability has remained at the top of our agenda, and the work hasn’t stopped. Expect to see more ground-breaking initiatives in 2021.”

Added Dr Alejandro Rios-Galvan, Chairman of the Sustainable Bioenergy Research Consortium (SBRC) at Khalifa University of Science and Technology, who advises the airline on a range of sustainability issues: “This is a great start for Etihad’s zero-carbon journey using a well-respected offset standard that is fully compliant with the best sustainability practices out there. We look forward to continue supporting Etihad on their long-term sustainability strategy.”

The airline said the Greenliner offset programme would complement its ongoing work to develop and test SAFs, with a goal of making them commercially viable for widespread adoption by the industry.

Etihad recently raised $600 million in the world’s first ‘transition sukuk’, a financial instrument enabling organisations to raise funds from investors in accordance with Islamic finance principles. Transition finance supports companies to make progress towards commitments to cut carbon in line with the goals of the Paris climate agreement. The proceeds will be used by the airline for energy-efficient aircraft and research and development into SAF.

According to HSBC, which acted with Standard Chartered Bank as joint global coordinators and joint sustainability structuring agents on the deal, the sukuk also includes a commitment from the airline to pay a penalty in the form of carbon offsets if it fails to meet its short-term target to reduce the carbon intensity of its passenger fleet. Etihad has pledged to reduce its passenger fleet’s emissions intensity by 20% by 2025 from a 2017 baseline.

“Many industries, including airlines, need to undertake complex and gradual transformations to reduce their carbon emissions – and the financial sector has a responsibility to help them,” explained Ali Taufeeq, Director, Middle East Debt Capital Markets, HSBC. “The transition sukuk issuance by Etihad was a natural step in this direction and we are pleased to assist them in accelerating investment in more environmentally-friendly solutions.”

The bank said it is expecting the sustainable finance market to gain further traction over the next few years as more issuers look to source capital more sustainably. It has set up a dedicated environmental, social and governance (ESG) Solutions Unit with an ambition to provide between $750 billion and $1 trillion in sustainable financing and investment by 2030. Transition finance is any form of financial support that helps high-carbon companies start to implement long-term changes to become greener, says HSBC, and bridges the gap between traditional and sustainable financing as businesses begin the journey to net zero.

The Etihad transition sukuk follows the first aviation financing linked to the UN Sustainable Development Goals it raised in December 2019.

“By issuing a sustainability-linked sukuk, Etihad is voluntarily adding to its existing commitments under CORSIA and also committing to reduce its carbon intensity,” said Adam Boukadida, Chief Financial Officer, Etihad Aviation Group.

Meanwhile, Sir Tim Clark, President of rival Emirates, said his airline remained dedicated to sustainability and reducing its environmental impact.

“We are watching developments in sustainable aviation fuel very closely and we look forward to a time when it can be produced at scale and in a cost competitive manner. Our latest A380 delivery flight was partially powered by SAF and this is a positive step towards reducing our overall emissions,” he commented.

The SAF for the delivery flight was produced in Finland by Neste from used cooking oil. Emirates said it continued to support a number of SAF initiatives and is part of the Steering Committee of the Clean Skies for Tomorrow Coalition, established by the World Economic Forum to promote the development of SAF. Along with Etihad, it recently supported a series of webinars (Sustainable Aviation Fuels Initiative for the United Arab Emirates) on the future of SAF in the UAE hosted by Khalifa University. A third of Emirates’ crew transportation buses in Dubai currently are powered by biofuels, with one of its contractors, Al Wegdaniyah, adopting biofuel supplied by Neutral Fuels.