Shell – GreenAir News https://www.greenairnews.com Reporting on aviation and the environment Thu, 05 Dec 2024 19:33:54 +0000 en-GB hourly 1 https://wordpress.org/?v=6.7.1 https://www.greenairnews.com/wp-content/uploads/2021/01/cropped-GreenAir-Favicon-Jan2021-32x32.png Shell – GreenAir News https://www.greenairnews.com 32 32 Shell takes a potential billion dollar hit over decision to pause SAF facility construction https://www.greenairnews.com/?p=5902&utm_source=rss&utm_medium=rss&utm_campaign=shell-takes-a-potential-billion-dollar-hit-over-decision-to-pause-saf-facility-construction Wed, 10 Jul 2024 16:07:59 +0000 https://www.greenairnews.com/?p=5902 Shell takes a potential billion dollar hit over decision to pause SAF facility construction

Shell has revealed it will take a financial hit of between $600 million and $1 billion from pausing construction of its biofuel plant in Rotterdam that was designed to produce 820,000 tonnes of biofuels a year, split between sustainable aviation fuels and renewable diesel, from used cooking oil and animal fats. First announced in September 2021, the former Pernis refinery at the Shell Energy and Chemicals Park Rotterdam was expected to open this year and be one of the biggest facilities in Europe producing fuel from waste. The oil major has cited difficult current market conditions for biofuels in Europe due to oversupply, cheap imports and lower than expected growth in demand for biodiesel. Technical problems had already led to delays in the project’s construction. Former Shell Aviation President Jan Toschka left the company earlier this year to join a new SAF venture, Zaffra, located in Amsterdam. Meanwhile, a new Dutch SAF feedstock startup Green Air Fuel Technology (GAFT) is on a fund-raising round to help develop its novel process.

Back in 2021, Shell said it was aiming to produce 2 million tonnes of SAF by 2025, and for SAF to make up 10% of its global aviation fuel sales by 2030. As part of its Powering Progress strategy, the company planned to transform its refineries into five energy and chemical plants, reduce the production of traditional fuels by 55% by 2030 and provide more low-carbon fuels, including for aviation. The Rotterdam project was said by the company to require “hundreds of millions of dollars of investment each year during construction.”

Announcing the decision to “temporarily pause” construction, Shell said it would “address project delivery and ensure future competitiveness given current market conditions.”

Added Huibert Vigeveno, Shell’s Downstream Renewables and Energy Solutions Director: “[This] will allow us to assess the most commercial way forward for the project. We are committed to our target of achieving net zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy to help us and our customers profitably decarbonise. And we will continue to use shareholder capital in a measured and disciplined way, delivering more value with less emissions.”

Dogged by technical difficulties, Shell said earlier this year the Rotterdam facility would be operational in the latter part of the decade. Just prior to announcing plans for the Rotterdam facility in 2021, Shell pulled its commercial and technical support, as well as passing up an equity share option, in the Velocys Altalto municipal waste to jet fuel project in north-east England. Shell said it had “decided to focus our resources on other lower-carbon fuels opportunities which leverage our own technology.”

In 2019, Shell also announced technical and commercial support for developing a SAF project led by SkyNRG to construct a production plant in Delfzijl, Netherlands, capable of producing 100,000 tonnes of SAF annually. Originally planned for commissioning in 2024, the project has so far not progressed.

Two years ago, Shell Aviation joined with Accenture and Amex GBT to launch the Avelia book-and-claim programme that enables corporations to verifiably purchase SAF to compensate for the emissions created when their employees fly on company business.

Elsewhere in the Netherlands, GAFT is developing a proprietary process in which waste feedstock, or synthetics, can be fermented to produce a batched process HEFA replacement that can be used in conventional refining facilities for SAF. Having received EU funding of €2.5 million to accelerate its technology, GAFT is now on a fund raise to aid the development of a first-of-a-kind plant and is involved in trial projects using its electrolysis units in Denmark and Romania.

The company says with a prospective HEFA feedstock squeeze expected by 2030, it can provide SAF producers with an economical, alternative feedstock that has no fossil fuel or food origin.

“In Europe and globally, the HEFA feedstock volumes cannot keep pace with new SAF production volumes. GAFT brings best available technology components together with unique patents for a first-of-a-kind, future-proof SAF feedstock plant,” said Frank Schreurs, Chief Executive of GAFT. “Our technology tackles the HEFA feedstock shortage to meet the rapidly increasing SAF market demand and we are working with our partners to bring forward our first deployment in the coming year.”

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Boeing, WestJet and Air New Zealand ink North American SAF supply deals https://www.greenairnews.com/?p=5646&utm_source=rss&utm_medium=rss&utm_campaign=boeing-westjet-and-air-new-zealand-ink-north-american-saf-supply-deals Mon, 29 Apr 2024 09:49:57 +0000 https://www.greenairnews.com/?p=5646 Boeing, WestJet and Air New Zealand ink North American SAF supply deals

North America has seen new sustainable aviation fuel agreements this month announced by Boeing and Canada’s WestJet, as well as Air New Zealand for supply in Los Angeles. Boeing has signed deals with multiple SAF suppliers to source 9.4 million gallons of blended product, its biggest single annual commitment. Of this, 4 million gallons are destined for its Pacific Northwest fuel farms and another 5.4 million gallons for distribution through book-and-claim programmes. In Canada, Calgary-based WestJet has bought the first SAF supplied in the country through Shell Aviation’s Avelia book-and-claim system. And in Los Angeles, Air New Zealand is taking delivery this year of 9 million litres (2.4 million gallons) of neat SAF produced in Singapore by renewable energy group Neste. Additionally, Boeing has just partnered with Australia’s Wagner Sustainable Fuels in developing a SAF blending facility in the state of Queensland.   

Boeing’s latest commitment, 60% greater than its SAF acquisitions in 2023, will be used in the company’s ecoDemonstrator programme, through which technologies and practices designed to increase aircraft efficiency and reduce their emissions are assessed using the company’s fleet of testbed aircraft. The blended supplies, all of which will include 30% SAF developed with waste fats, oils and greases, will also be used on Boeing’s commercial operational flights in the US.

The 4 million gallons of blended SAF destined for Boeing’s fuel farms will be produced by renewable energy group Neste and supplied by two US-based independent suppliers – 2.5 million gallons from EPIC Fuels, which operates major facilities in Oregon and Texas, and 1.5 million gallons from Avfuel, based in Michigan.

The additional 5.4 million gallons of blended SAF will also be provided in two batches, with 3.5 million gallons of Neste-made SAF to be supplied by EPIC Fuels, and 1.9 million gallons produced by World Fuel Services and supplied by World Energy. Through a book-and-claim process, Boeing will purchase the CO2 emissions reductions associated with these deals.

As well as driving up demand for SAF, book-and-claim systems authenticate the environmental attributes and ensure that these are allocated to buyers of the fuel as offset credits towards their net zero carbon emission targets.

 “About 20% of our fuel usage is a SAF blend,” said Ryan Faucett, Boeing’s VP Environmental Sustainability. “We continue to increase our use of this fuel to encourage growth in the SAF industry. We are also working to make SAF more available and affordable to our commercial airline customers through collaboration, investment, research and policy development.”

In Canada, WestJet said it had acquired the first SAF to be supplied in the country by Shell Aviation via its Avelia book-and-claim platform, though neither the volume nor timeframe of the fuel deal were disclosed in the airline’s announcement. Avelia uses blockchain technology to confirm transparent tracking of the environmental attributes of SAF, from production to delivery into aviation fuelling networks.

“WestJet is committed to enhancing our position as a first mover in sustainability technologies,” said Angela Avery, the airline group’s EVP and Chief People, Corporate and Sustainability Officer. “Just as we pioneered advancements in winglets and drag reduction, WestJet proudly stands as the first airline to acquire SAF by Shell in Canada. This first step sets the stage for future collaboration and innovation to encourage investments in this important lever for decarbonisation.”

The airline also added to the industry’s growing global pressure for support of SAF, saying it continued to work with government and industry partners to establish a sustainable, long-term commercial framework for the fuel which, “with the right regulatory and investment environment”, was one of aviation’s more viable and scalable decarbonisation pathways.

Christine Bassitt, Shell Aviation’s GM Americas, welcomed the WestJet deal, which not only supported decarbonisation of air transport, but simultaneously expanded the SAF supply chain in Canada to enable greater access to the fuel. 

Air New Zealand’s latest SAF deal was signed in Singapore during a New Zealand government-sponsored business delegation to South-East Asia, led by Prime Minister Christopher Luxon, a former CEO of the airline. The fuel will be produced by Neste at its recently expanded Singapore refinery, with the first supplies already being delivered to Los Angeles International Airport, from which the airline flies daily. The total order will be fulfilled by 30 November.

This is the biggest purchase of SAF from Neste by any airline based outside North America and Europe for delivery before the end of 2024, and nine times Air New Zealand’s first SAF acquisition from Neste in 2022. The airline’s total global SAF uptake between April and the end of November is expected to be 850 million litres (225 million gallons), as part of a broader decarbonisation programme that includes the introduction of electric aircraft.

Having committed last year to acquire up to 23 all-electric ALIA aircraft from Beta Technologies, the airline has now announced Wellington-Marlborough as the first route for all-cargo flights, to operate in partnership with NZ Post.  Serving as a commercial demonstrator for zero emission operations, the first aircraft will be based in Wellington, the national capital, at the base of New Zealand’s North Island, while Marlborough Airport in Blenheim, at the top of the South Island, will install charging infrastructure for the plane’s return journey across the Cook Strait.

Kiri Hannifin, Air New Zealand’s Chief Sustainability Officer, said the demonstrator aircraft would be used to gradually prepare the national aviation system for lower emission aircraft ahead of 2030, when the airline plans to phase out its fleet of 23 Q300 turboprops, or potentially convert them to new zero-emission propulsion systems.  

“Decarbonising aviation is of global importance, and in New Zealand maintaining regional connectivity through this transition is of national importance,” said Dean Heiford, CEO of Marlborough Airport. “This is a big step for us on our own sustainability journey that we wouldn’t have been able to achieve without partnership. We’re looking forward to sharing our learnings with other regional airports across New Zealand.”

In neighbouring Australia, Boeing has bolstered its latest commitment to SAF by partnering with Wagner Sustainable Fuels, which has commenced the design and construction of a SAF blending facility in the state of Queensland.

Ther new facility, which is due to open later this year, is located at Wagner’s Wellcamp Airport in the regional city of Toowoomba, west of Brisbane, which accommodates flights ranging from turboprop and narrowbody passenger jets to Boeing 747 freight services by Cathay Pacific, which regularly flies fresh produce from the region to Asia and beyond.

“Wagner’s sustainability goals align with Boeing’s work to advance aviation decarbonisation and energy security through renewable energy including SAF, advanced technologies, operational efficiency and fleet renewal,” said Kim Camrass, sustainability lead for Boeing in Australia, New Zealand and South Pacific.

“We’re proud to contribute to the building blocks of a sovereign SAF production industry with this Australian first facility,” said Matt Doyle, CEO of Wagner Sustainable Fuels, “and anticipate by the end of 2024 this facility will mark the start of the supply of SAF in Australia on a consistent basis.

“In collaboration with Boeing, the Wellcamp blending facility will demonstrate the greenhouse gas emissions reduction benefits of SAF for our customers, provide a focus for federal and state policy makers, and introduce the supply chain to this potential AUD3 billion ($2bn) per year industry.”

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Leisure airline Jet2 to use SAF at Stansted and Bristol as it prepares for UK mandate https://www.greenairnews.com/?p=5608&utm_source=rss&utm_medium=rss&utm_campaign=leisure-airline-jet2-to-use-saf-at-stansted-and-bristol-as-it-prepares-for-uk-mandate Wed, 24 Apr 2024 19:20:23 +0000 https://www.greenairnews.com/?p=5608 Leisure airline Jet2 to use SAF at Stansted and Bristol as it prepares for UK mandate

UK leisure airline Jet2.com has purchased around 650 tonnes of SAF from Shell Aviation, which will be used to add a 1% SAF blend onto a number of departing flights from London Stansted this year, with a further 350 tonnes purchased from Q8 Aviation for use at Bristol Airport. The airline, the UK’s third biggest, has made an equity investment in the Fulcrum NorthPoint SAF production facility due to be constructed in north-west England. However, said the company, without a fully-fledged domestic SAF industry, the UK remained reliant on fuel imported at a high cost or airlines would otherwise in future under the mandate be required to pay a buy-out price, “putting UK airlines and holidaymakers at a competitive disadvantage.”

Ashleigh McDougall, Shell Aviation’s General Manager for Europe and Africa, said scaling the supply and use of SAF required a concerted effort from across the aviation sector. “The announcement with Jet2.com is a great example of the collaborative actions that are required to drive forward the use of SAF and help decarbonise flight,” she said.

Commented Steve Heapy, CEO of Jet2.com and Jet2holidays: “We see SAF as critical in helping the industry decarbonise and we can use this supply to ensure our operations are ready for SAF uptake both now and in the future, when we anticipate its use will grow materially. We very much see 1% as the starting point and we want to grow this over the coming years.”

He called for greater support to incentivise the uptake of SAF in the UK and reduce its cost. “The UK government must implement a price revenue mechanism earlier than the current timeline of 2026, which means we can secure investor confidence, build the UK SAF plants that we need, and turbocharge the UK SAF industry,” he said.

Under the airline’s investment in Fulcrum NorthPoint, it expects to receive over 200 million litres of SAF over a 15-year period from the proposed NorthPoint waste-to-fuels facility when it becomes operational, which will achieve net emissions reductions totalling around 400,000 tonnes of CO2.

In line with government policy, Jet2 has a target of net zero emissions by 2050 but aspires to bring this date forward. As part of its sustainability strategy, it has 110 Airbus A320/A321 neo aircraft on firm order, which could extend up to 146 aircraft. Its holiday arm has recently launched a hotel sustainability labelling scheme so that customers and travel agents can easily find and choose from a collection of certified sustainable hotels that meet Global Sustainable Tourism Council recognised standards.

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Governments gather to seek agreement on a global framework for aviation’s energy transition https://www.greenairnews.com/?p=4990&utm_source=rss&utm_medium=rss&utm_campaign=governments-gather-to-seek-agreement-on-a-global-framework-for-aviations-energy-transition Thu, 23 Nov 2023 16:55:56 +0000 https://www.greenairnews.com/?p=4990 Governments gather to seek agreement on a global framework for aviation’s energy transition

In what ICAO Council President Salvatore Sciacchitano described as the UN civil aviation agency’s most important event of the year, countries are convening this week in Dubai to agree a global framework on a cleaner energy future for aviation. The purpose of the Conference on Aviation Alternative Fuels (CAAF/3) is to steer policy direction and financing to aid the rapid shift towards new forms of sustainable energy, in particular sustainable aviation fuels, to meet ICAO’s Long Term Aspirational Goal (LTAG) of net zero carbon emissions from international aviation by 2050. Sciacchitano said it would be a massive task that required immediate collective action. SAF production remains largely confined to Europe and the USA but the collective global target will require huge support and investment for energy transition in the developing world. The week-long meeting has been marked with an Emirates A380 demonstration flight with one engine powered by 100% SAF.

“We must urgently scale up the development and deployment of sustainable, lower carbon and other clean energy aviation fuels in order to meet the sustainability expectations of both the world and the stakeholders,” said Sciacchitano in his opening address at CAAF/3. “We have a massive task ahead of us this week as we deliberate on the ICAO Global Framework for aviation’s cleaner energy transition, a key step for the sustainable development of air transport. ICAO’s main priority is the implementation and achievement of LTAG. To do this, we need to take collective action now and CAAF/3 can be instrumental in laying the building blocks in terms of policy and planning, regulatory framework adjustments, implementation support and financing.

“This is also an opportunity for States to demonstrate strong leadership in addressing international aviation emissions just before the UN’s COP28 climate change conference also taking place here in the UAE. A successful, robust and ambitious global framework can only serve to shine a bright spotlight on the shared efforts and commitment to decarbonising our sector. We have a great opportunity to show and communicate to the world that aviation is seriously and strongly committed to decarbonise by 2050.”

In a video address, UN Secretary-General Antonio Guterres said aviation was one of the most challenging sectors to decarbonise, “but with innovation and investment, it can be done.”

He added: “A net-zero aviation sector means cleaner energy sources on a global scale. It means economic policies and regulations that can support a just and equitable transition while attracting investors, and it means measures such as carbon pricing, low-carbon fuel standards and subsidies for sustainable aviation fuels. The global framework emerging from this conference is a critical step towards a clean and prosperous future for this vital sector. By moving at jet speed you can speed up the clean energy revolution our world needs.

“With the upcoming COP28, now is the time to turn ambition into concrete action to find ways to deliver on your net zero target and shape a better, cleaner future for all.”

CAAF meetings take place only on a six-year basis, the first held in Brazil in 2009, and CAAF/3 is the culmination of a series of stocktaking and pre-CAAF/3 conferences and consultations to prepare the ground for a ‘2050 ICAO Vision’ for SAF, lower carbon aviation fuels (LCAF) and other aviation cleaner energy sources in order to define a global framework in line with ICAO’s ‘No Country Left Behind’ initiative that takes into account national circumstances and capabilities. SAF, LCAF and other aviation cleaner energies are expected to make the largest contribution towards achieving the LTAG.

The 2050 Vision acknowledges that no single fuel source will be produced at a level necessary to achieve the LTAG and so the framework needs to be flexible and not exclude any particular fuel source, pathway, feedstock or technology that meets the CORSIA eligible fuels criteria, says ICAO.

Since earlier this year, a Small Group for Preparations for CAAF/3, under the Climate and Environment Committee (CEC) of ICAO’s governing Council, has been considering possible CAAF/3 outcomes, including a draft global framework. The framework is built across four interconnected building blocks that need to advance and work together: policy and planning; regulatory frameworks; implementation support; and financing.

Although there has been general convergence on the Vision, some differences remain around aviation cleaner energies and financing, which will be discussed during the conference.

A number of States want to see CAAF/3 emerge with a quantified goal in order to send a political signal of support for sustainable fuels that could unlock private sector investment around the world.

“The reason why investors need this outcome is that it is crucial to assuring the durability of their investments,” US government representative Annie Petsonk said during an opening panel session. “If they are going to make the major investments that allow SAF to be produced in refineries and to develop the required feedstocks and supply chains, they want to see governments are serious about this transition. Through informal consultations I have had already, I am very hopeful that I will be able to communicate a positive outcome to them.”

The US is also supporting the creation of the ICAO Finvest Hub, which aims to act as a facilitating platform to connect projects contributing to the decarbonisation of international aviation, including feedstock and SAF production, with potential public and private investors. A priority of the initiative would be to support developing countries and those with special needs in financing aviation decarbonisation projects. It would also offer technical assistance, capacity building and guidance on the development of legal and policy frameworks.

Industry is also represented at CAAF/3 and has a similar wish list. “There are two key outcomes we would like to see from the conference: a goal for SAF deployment that can provide investment certainty to the finance markets and influence policy actions around the world, and a supportive global framework that will ensure countries everywhere can take advantage of the opportunities to build new energy industries and secure jobs in supplying SAF,” said Haldane Dodd, Executive Director of the cross-industry Air Transport Action Group (ATAG).

ATAG says the transition to SAF is already underway, with policy measures being implemented or discussed in around 40 countries, with $45 billion in forward SAF purchase agreements in place with airlines, operators and corporate partners. Ten facilities are currently producing SAF, it says, but by 2029 over 150 projects in 35 countries are being explored that could be used for SAF production.

“The SAF scale-up has begun,” said Dodd. “Over 10 times more SAF was delivered to airlines in 2022 than in 2019. That pace of development will continue but needs to accelerate significantly to keep in line with the industry’s path to net zero.

“Three things are needed to make the aviation energy transition happen: government policy to support supply and create certainty for demand; financing of the potentially $1.5 trillion in infrastructure capital needed to supply SAF at the scale required; and a serious effort by the traditional energy sector to shift their products from fossil to sustainable fuels. We believe the CAAF/3 meeting can set the scene for these developments and help catalyse the transition in aviation. These are tough decisions and complex challenges, but necessary ones to progress as climate change makes its impacts felt.

“A global framework from CAAF/3 will help capacity building and access to finance so that countries everywhere can build SAF industries of their own. Enormous value can be created in diversifying and democratising energy supply if governments grasp the opportunities ahead of them.”

Added Laurent Donceel, Deputy Managing Director of Airlines for Europe (A4E): “The future of aviation depends on sustainable aviation fuels and it is critical the CAAF/3 meeting produces a global agreement for a net-zero aviation with realistic targets to promote the use of SAF. Global investments in SAF and boosting the energy transition in aviation will create a bounty of jobs and growth around the world.

“Europe and the USA are accelerating down the runway towards a more sustainable future so it’s critically important that the rest of the world keeps up and delivers a truly net zero aviation industry. CAAF/3 is an ideal opportunity to set this in stone.”

Environmental NGOs belonging to the International Coalition on Sustainable Aviation have called on the meeting “to adopt a global aspirational quantified objective for 2050 and an aspirational trajectory that are consistent with the Paris Agreement temperature goals, and that prioritise the environmental and social integrity of alternative fuels.”

Setting the goal, they say, requires adopting, primarily, a metric that focuses on the carbon intensity of alternative fuels on a lifecycle basis, consistent with CORSIA eligible fuels methodology.

“A successful outcome requires focusing on defining an ambitious vision that prioritises the environmental and social integrity of alternative fuels and therefore avoids trading an environmental threat for another,” said a statement presented at CAAF/3. “The focus should always be on quality rather than quantity.”

In addition to a robust sustainability standard, said the NGOs, CAAF/3 should emphasise transparency to ensure alternative fuels are accurately reported and accounted for, with the avoidance of double counting critical for integrity.

The statement notes that whereas the CAAF/2 vision focused solely on sustainable aviation fuels, the scope for CAAF/3 has been expanded to cover not only other cleaner energy sources such as cryogenic hydrogen and electricity, but also lower carbon aviation fuels (LCAF) of fossil origin.

“ICSA believes that while LCAF may have potentially lower carbon emissions on a lifecycle basis, all fuels of fossil origin must, by definition, be regarded as unsustainable. The CAAF/3 Vision should avoid the use of encompassing terms such as ‘sustainable fuels’ and instead use suitable terms such as ‘alternative fuels’.

To coincide with CAAF/3, Emirates this week has become the first airline to operate an A380 demonstration flight using 100% SAF. In a collaboration with Airbus, Engine Alliance, Pratt & Whitney, ENOC, Neste and Virent, the Emirates aircraft took off from Dubai International Airport with one of its four engines powered on 100% SAF. The flight carried four tonnes of SAF, comprised of HEFA-SPK provided by Neste and HDO-SAK (hydro deoxygenated synthetic aromatic kerosene) from Virent. ENOC helped to secure the neat SAF comprised of HEFA-SPK and blended it with SAK at its facility in the airport.

The 100% SAF was used in one Engine Alliance GP7200 engine, while conventional jet fuel was used in the other three engines. The PW980 auxiliary power unit from Pratt & Whitney Canada also ran on 100% SAF. The flight on November 22 was preceded by robust engine testing, with the objective of validating the engine’s capability to run on the specially blended 100% drop-in SAF without affecting its performance or requiring modifications. Ground engine testing took place at the Emirates Engineering Centre in Dubai.

Earlier this year, Emirates completed the first 100% SAF-powered demonstration flight in the region on a GE90-powered Boeing 777-300ER. Shell has supplied Emirates with 315,000 gallons of blended SAF for use at Dubai and the airline currently uplifts SAF in Norway and France. Emirates recently expanded its partnership with Neste for the supply of over 3 million gallons of blended SAF in 2024 and 2025 for flights departing from Amsterdam Schiphol and Singapore Changi airports.

“The growing global demand for lower-emission jet fuel alternatives is there, and the work of producers and suppliers to commercialise SAF and make it available will be critical in the coming years to help Emirates and the wider industry advance our path to lower carbon emissions,” commented Adel Al Redha, COO, Emirates Airline.

Videos of the CAAF/3 proceedings are available on ICAO TV

Emirates A380 100% SAF demonstration flight:

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Emirates and Shell in 300,000-gallon SAF purchase deal using Avelia book-and-claim https://www.greenairnews.com/?p=4908&utm_source=rss&utm_medium=rss&utm_campaign=emirates-and-shell-in-300000-gallon-saf-purchase-deal-using-avelia-book-and-claim Fri, 06 Oct 2023 14:05:19 +0000 https://www.greenairnews.com/?p=4908 Emirates and Shell in 300,000-gallon SAF purchase deal using Avelia book-and-claim

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

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Bank of America joins Amex GBT-Shell SAF book-and-claim business travel programme https://www.greenairnews.com/?p=4679&utm_source=rss&utm_medium=rss&utm_campaign=bank-of-america-joins-amex-gbt-shell-saf-book-and-claim-business-travel-programme Thu, 29 Jun 2023 11:34:25 +0000 https://www.greenairnews.com/?p=4679 Bank of America joins Amex GBT-Shell SAF book-and-claim business travel programme

Bank of America has become the first financial institution to join the sustainable aviation fuel purchasing programme jointly established by Shell Aviation and American Express Global Business Travel (Amex GBT). The book-and-claim programme enables corporations to verifiably purchase SAF to compensate for the emissions created when their employees fly on company business. The bank has pledged to support the production and use of 1 billion gallons of SAF by 2030 and has committed to ensure SAF comprises at least 20% of the total jet fuel used each year in flights by its own staff and management. The new partnership coincides with an announcement by Shell that it will supply SAF to Japan Airlines in Los Angeles from 2025.

“By purchasing SAF, and working with other companies, we are taking more tangible steps to help build a more affordable and accessible sustainable aviation fuel market,” said Beth Sullivan, Bank of America’s Head of Global Corporate and Executive Travel.

The Amex GBT-Shell programme adopted by Bank of America is designed to connect airlines with corporations willing to help pay the premium charged for SAF, which is currently two-to-eight times the price of conventional fossil-based jet fuels. The programme uses the blockchain-powered Avelia book-and-claim platform, which leverages the Amex GBT base of over 19,000 clients in 140 countries, and accounts for SAF provided by Shell.

“The business travel sector has a critical role to play in scaling SAF and accelerating the decarbonisation of travel,” said the Amex GBT’s President, Andrew Crawley. “We will move closer to achieving these objectives with more companies like Bank of America making bold commitments and recognising the powerful role the corporate travel programme can play in achieving a company’s broader sustainability goals.”  

Participation by Bank of America in the programme follows multiple previous commitments by the bank to help catalyse the broader SAF market through financing, investment, capital markets and procurement. Its stated aim is to work with aviation fuel suppliers and other members of aviation’s energy ecosystem to help boost production of SAF, and support the development of distribution infrastructure through sustainable financing.

Among its commitments are a partnership with American Airlines to support the purchase of 3 million gallons of SAF over a three-year period, and a 10-year deal with SAF provider SkyNRG to support the production of 1.2 million gallons of SAF per year from 2025.  

The bank is also a founding member of the Sustainable Aviation Buyers Alliance (SABA), a partner in two sustainability programmes of the World Economic Forum, ‘Clean Skies for Tomorrow’, and the ‘First Movers Coalition’, and a member of Breakthrough Energy Catalyst, a specialist investment vehicle established by tech billionaire Bill Gates to fund or invest in emergent technologies, including SAF, which help to reduce greenhouse gas emissions.

The WEF was the catalyst for widespread commitments last year to accelerate SAF use to 10% by 2030. “Companies are moving from pledges to actual business practices,” said Lauren Uppink, the WEF’s Head of Climate Strategy. “This programme and Avelia represents the culmination of years of groundwork building the value chain to support the scaling of SAF, now operational. The theoretical is becoming real.”

Shell Aviation’s President, Jan Toschka, added: “It’s brilliant to see Bank of America leading the finance sector’s charge to decarbonise business travel through SAF. Corporations that choose to fly on SAF have the power to catalyse the scaling of this technology and accelerate decarbonisation across the aviation sector. It’s a fantastic opportunity for businesses to make aviation more sustainable.”

As well as supplying SAF for corporate purchasers, Shell is also upping its supplies to airlines, announcing an agreement to fuel Japan Airlines services in Los Angeles from 2025. Shell says it will provide JAL with SAF volumes of SAF “equivalent to its current estimated jet fuel uplifts in Los Angeles over the supply period.”

While the length of the period was not specified, JAL has committed that 1% of its total jet fuel from 2025 will be SAF, increasing to 10% of total use by 2030 as it strives to achieve net zero carbon emissions by 2050. Recently, JAL also set itself the 2030 target of reducing CO2 emissions by 10% compared to 2019 levels.

JAL’s Los Angeles commitment parallels moves by Japan’s Ministry of Economy, Trade and Industry (METI) to mandate 10% SAF use on international flights from Japan, effective from 2030. The proposal also will require fuel suppliers to provide product including a 10% SAF blend. Subject to review by a council of private and public sector members, the SAF blending mandate is expected to be formalised by March next year. 

Photo: Shell Aviation

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Montana Renewables ships first supplies of SAF for Shell’s airline customers https://www.greenairnews.com/?p=4448&utm_source=rss&utm_medium=rss&utm_campaign=montana-renewables-ships-first-supplies-of-saf-for-shells-airline-customers Thu, 18 May 2023 14:19:22 +0000 https://www.greenairnews.com/?p=4448 Montana Renewables ships first supplies of SAF for Shell’s airline customers

Following their multi-year agreement, Montana Renewables has begun first shipments of sustainable aviation fuel to Shell Aviation for onward delivery to Shell’s US customers that include JetBlue, Alaska Airlines and Delta Air Lines. Montana Renewables claims it will be producing around 30 million gallons of SAF per year and make it the largest SAF producer in North America, with plans to significantly increase that amount over the next two to three years. The company’s location is close to major feedstock sources in the US and Canada, including the temperate oil seed growing zone and large farm and ranch operations in the region. Shell and its affiliates are expanding and building supply chain capabilities to blend and distribute SAF throughout the United States to enable more customers with access to the fuel.

“We’re proud to collaborate with Shell to improve aviation sustainability,” said Bruce Fleming, CEO Montana Renewables (MRL). “Strong support from the State of Montana, Cascade County and the City of Great Falls made possible the unique speed of Montana Renewables, and Shell is the logical offtake partner for us to reach multiple airlines and airports from our geographically advantaged site. We are now producing more SAF than any other North American company, on top of our renewable diesel and renewable hydrogen.”

MRL, whose renewable fuels plant began operations in late 2022 following investment of over $1 billion since Calumet acquired the business in 2012, has applied for International Sustainability & Carbon Certification (ISCC) CORSIA certification. It is permitted for 15,000 barrels per stream day of renewable feedstocks, which include seed oils, used cooking oil and tallow, for conversion into low-emission alternatives.

In April, Delta announced an agreement to purchase 10 million gallons of neat SAF from Shell Aviation, to be used over two years at Los Angeles International Airport. The agreement also includes testing the Avelia blockchain-powered digital book-and-claim platform launched by Shell Aviation and its partners last year.

“This is a great example of the kind of action and investment needed in states across our country that we need to meet our aggressive SAF goals as an industry,” said Pam Fletcher, the airline’s Chief Sustainability Officer. “There’s not enough SAF being produced today to power the world’s commercial airlines for a single day, so we’re grateful to everyone at the State of Montana, Montana Renewables and Shell for providing the incentives and taking meaningful steps towards scaling production of this largest known lever we have for decarbonising aviation.”

According to Delta’s ESG Report for 2022, the airline has a goal of replacing 10% of its jet fuel consumption by 10% by the end of 2030 and expects this to require at least 400 million gallons of SAF annually. At the end of 2022, Delta had agreements in place, “subject to third-party investment and timely facility development”, with multiple suppliers for an aggregate offtake of 200 million gallons towards the 2030 target.

“We continue to purchase from and align with leaders in the SAF industry to accelerate our yearly procurement,” says the report.

Photo: Shell Aviation

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Ryanair starts using SAF on all flights from Amsterdam’s “quieter and cleaner” Schiphol https://www.greenairnews.com/?p=4237&utm_source=rss&utm_medium=rss&utm_campaign=ryanair-starts-using-saf-on-all-flights-from-amsterdams-quieter-and-cleaner-schiphol Thu, 20 Apr 2023 14:52:43 +0000 https://www.greenairnews.com/?p=4237 Ryanair starts using SAF on all flights from Amsterdam’s “quieter and cleaner” Schiphol

Ryanair has commenced using a 40% blend of sustainable aviation fuel in all its operations from Amsterdam’s Schiphol Airport through a new agreement with renewable fuel producer Neste, advancing the carrier’s goal of 12.5% SAF use across all its flights by 2030. The European low-cost airline did not disclose details of the volume of fuel to be acquired or the term of the agreement. The deal builds upon a recent MoU between Ryanair and Shell through which the energy company will supply SAF at more than 200 European airports served by Ryanair between 2025 and 2030. Neste has started providing renewable diesel fuel to power ground service vehicles at Schiphol, which is targeting net zero emissions by 2030. The airport has proposed a night closure, a ban on private jets and the scrapping of plans for a new runway as part of becoming “quieter, cleaner and better”.

Ryanair operates a total of 63 flights per week from Schiphol, flying to both Dublin, the airline’s home base, and the Spanish resort of Malaga. Thomas Fowler, the airline’s Director of Sustainability, said the new deal with Neste, which took effect this month, boosted Ryanair’s use of SAF at Amsterdam from one third of its departures to all services. “Increasing the use of SAF is a fundamental pillar of our Pathway to Net Zero by 2050 decarbonisation strategy,” he said. “This increase at Amsterdam will reduce greenhouse gas emissions of our flights from there by 32%.”

However, the Amsterdam deal will make only an incremental difference to Ryanair’s total decarbonisation effort, given the carrier’s steep growth projections for the next five years. In its recent Q3 financial update, the airline said it operated more than 3,200 flights each day across a network of 2,450 routes, serving 236 airports with a fleet 523 aircraft, and flagged a total of 168 million passenger journeys for the full financial year. It also forecast a rise to 185 million passenger journeys in 2024, 205 million in 2025 and 225 million in 2026.   

In addition to the recent partnership with Shell, which the airline said could potentially provide access to 360,000 tonnes of SAF, or 120 million gallons, over a five-year period, Ryanair continues to introduce new, more fuel-efficient, Boeing 737 MAX aircraft, of which it already operates more than 80 from a total order of 210. As well, the airline recently signed a $175 million agreement with Aviation Partners Boeing to retrofit new split scimitar devices to the wingtips of its existing fleet of more than 400 Boeing 737-800NG jets that would help reduce aerodynamic drag in flight and cut fuel consumption by up to 1.5%. Ryanair estimates that the devices, the first of which have already been installed, will reduce annual fuel consumption by more than 65 million litres and carbon emissions by 165,000 tonnes.

“Decarbonising aviation is more important than ever, and we are proud to support Ryanair in achieving their ambitious Pathway to Net Zero by 2050,” said Alexander Kuper, VP EAME for Neste’s renewable aviation division. “Increasing the usage of SAF to all flights departing from Schiphol is a major milestone enabling Ryanair to substantially reduce greenhouse gas emissions of its operations at the airport.”

Neste has also signed SAF agreements this year with three other European carriers – Brussels Airlines, Wizz Air and Finnair. In January, Brussels Airlines received the first supply of Neste SAF pumped to Brussels Airport via NATO’s Central European Pipeline System (CEPS). Neste also reached agreement with Wizz Air, providing the airline “the opportunity to purchase” 36,000 tonnes of SAF per year for three years, starting in 2025, for use in its European and UK operations. Finnair has purchased 750 tonnes of SAF from Neste as part of its ambition to achieve carbon neutrality by 2045. The airline said this was sufficient to power around 400 flights between Helsinki and Stockholm if using unblended 100% SAF.

In addition to its SAF deals with airlines, Neste has begun supplying HVO100 renewable diesel product to replace conventional diesel fuel in all ground handing vehicles and machinery at Schiphol, where 40% of vehicles are already electrically-powered.  “This is a significant step on the way towards a zero-emission ground operation in 2030,” said Denise Pronk, Head of Sustainability for the airport’s management company Royal Schiphol Group. “The vehicles for which there are currently no electric or hydrogen alternatives available can run on renewable diesel. Everyone on airside, where the loads are moved to or from aircraft, is making use of it.”

While Ryanair is planning to cut its emissions at Schiphol, the airport is at the centre of controversial attempts by its main shareholder, the Dutch government, to further reduce aircraft emissions and noise by introducing measures including a ban on flight departures between midnight and 6am, and arrivals between midnight and 5am.

The decision, announced by Royal Schiphol Group, was temporarily blocked by a Dutch court after the airline industry successfully argued the airport operator acted without required consultation.

Welcoming the court’s preliminary decision, the International Air Transport Association (IATA) said the Dutch government had unilaterally decided to reduce flight movements at Schiphol Airport from 500,000 to 440,000 per year.

“We believed no legal basis existed for this reduction,” said IATA. “It violates international treaties and European regulations. Governments can lower the number of flight movements in order to reduce noise, but only after having a careful process, consisting of, for example, assessing the current noise level, setting a noise goal and considering alternative measures. This did not occur.”

Joining IATA in its legal action were KLM Royal Dutch Airlines, Air Canada, United Airlines, JetBlue, Lufthansa, British Airways, Vueling, FedEx and advocacy group Airlines for America (A4A).

Justifying its future ban on private jets and small business aviation, the airport operator said this sector caused a “disproportionate amount of noise nuisance and CO2 emissions per passenger – around 20 times more CO2 compared to a commercial flight.” Private jet flights to holiday destinations make up 30-50% of all such flights from Schiphol, it added.

The night time and private jet measures would apply no later than 2025-2026, expects Schiphol. It also wants to keep 2.5% of available take-off and landing slots for cargo flights, which it believes are under threat due to international slot regulations. However, cargo flights will have to conform with new tighter rules for noisier aircraft and the new night closure measure.

The airport has also abandoned plans for an additional parallel runway and, together with central government, is setting up an environmental fund for the local area. Between now and 2030 it intends investing a total of €70 million ($76m) in innovative construction concepts, home insulation and area development “for an improved living environment”.

“Schiphol connects the Netherlands with the rest of the world. We want to keep doing that but we must do it better,” commented Ruud Sondag, CEO of Royal Schiphol Group, on the measures. “The only way forward is to become quieter and cleaner more rapidly. We have thought about growth but too little about its impact for too long. We need to be sustainable for our employees, the local environment and the world.

“I realise that our choices may have significant implications for the aviation industry, but they are necessary. This shows we mean business. It is the only way, based on concrete measures, to regain the trust of employees, passengers, neighbours, politics and society.”

Photo: Ryanair (Piotr Mitelski)

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Shell Aviation to provide SAF at LAX and Copenhagen under new agreements with JetBlue, Alaska and Air Greenland https://www.greenairnews.com/?p=4130&utm_source=rss&utm_medium=rss&utm_campaign=shell-aviation-to-provide-saf-at-lax-and-copenhagen-under-new-agreements-with-jetblue-and-air-greenland Wed, 22 Mar 2023 14:41:11 +0000 https://www.greenairnews.com/?p=4130 Shell Aviation to provide SAF at LAX and Copenhagen under new agreements with JetBlue, Alaska and Air Greenland

Shell Aviation has announced three new sustainable aviation fuel airline agreements, two with US carriers JetBlue and Alaska Airlines for operations from Los Angeles International Airport (LAX), the other with Air Greenland for flights between the Danish capital, Copenhagen, and Greenland’s major airport, Søndre Strømfjord/Kangerlussuaq. In the JetBlue deal, Shell will supply 10 million gallons of blended SAF to the airline at LAX during the next two years, with an option for another 5 million gallons the following year at that airport or others. Alaska will also receive up to 10 million gallons of neat SAF, as well as working with Shell to increase supplies of the fuel on the US West Coast and help alleviate fuelling infrastructure limitations in the Pacific Northwest. The Air Greenland deal, effective this month, is its first acquisition of SAF and will comprise up to 5% of the blend used on the carrier’s Copenhagen-Kangerlussuaq flights, more than double the proposed initial EU mandate of 2% from 2025.     

The new SAF agreements between Shell and the two US carriers build upon multiple existing agreements by the airlines with other suppliers and progress each of their ambitions to achieve net zero carbon emissions by 2040, a decade earlier than the airline industry’s generic 2050 target.

The JetBlue partnership with Shell Aviation builds on a SAF programme launched in 2020, when the airline began using supplies provided in Los Angeles and San Francisco by renewable fuel producers Neste and World Energy.  The airline has also signed agreements for future SAF supplies from Aemetis, Fidelis New Energy and Air Company, with the latter planning to produce low-emission fuel from converted CO2 emissions.

“We’ve long said we need multiple key stakeholders to step up to reach our aggressive emissions reduction goals,” said JetBlue CEO Robin Hayes. “This deal with Shell is a key signal of the growing engagement of the major fuel producers to begin converting conventional jet fuel to SAF. Shell’s involvement, with their expertise in energy markets and logistics, is a validation of the SAF market’s potential and highlights how critical the SAF transition of our hard-to-decarbonise industry is to establishing a more sustainable future of flight.”    

Sarah Bogdan, the airline’s Director of Sustainability and ESG, added: “We envision a future of a robust, regular and diversified supply of SAF delivered all around our network, incrementally replacing conventional fuels and driving down emissions in our operation. We’ve publicly committed to cutting our per-seat emissions in half by 2035 and a viable SAF market at scale is a key component to meet this goal. Working with Shell will not only help grow the availability of SAF in the long term but also ensure this transition is sustainable from a business perspective by building the connections and infrastructure to help keep the cost of SAF competitive with traditional fuel.”

The airline and the oil major will also collaborate to enable corporations to purchase JetBlue-issued SAF certificates to help compensate for the emissions from air travel by their employees. This will be enabled through the use of Avelia, a blockchain-powered SAF book-and-claim mechanism developed by Shell and Accenture with support from the Energy Web Foundation, and using the travel management services of American Express Global Business Travel to aggregate global business demand for SAF.

Once the new Shell deal takes full effect, SAF will account for 15% of JetBlue’s fuel uplift from LAX. The airline said this initiative and its other sustainability commitments would also apply to its planned integration – subject to regulatory approval – of low-cost carrier Spirit Airlines into its operation.

But while it highlighted increased SAF use in California, JetBlue said this was due to that state’s low-carbon fuel programme, adding that increased voluntary use of SAF at airports elsewhere would require additional state and federal level incentive programmes for SAF producers and airline purchasers.

In addition to buying neat SAF from Shell, Alaska Airlines has also agreed to work with the oil company to help develop the SAF market beyond a standard fuel supply arrangement. The new partnership includes commitments to broaden understanding of technology, infrastructure, carbon accounting systems and public policy support required to increase SAF production, lower the cost of the fuel and deliver it to more markets.

“We’ve pioneered SAF technologies for more than a decade. But we can’t scale the market alone,” said Diana Birkett Rakow, Alaska Airlines’ SVP Public Affairs and Sustainability. “We’re excited to take this next step in the journey with Shell, to leverage their deep knowledge of the energy industry, its infrastructure requirements and supply chain to make lower lifecycle carbon SAF more widely available for the future.” 

As airlines increasingly commit to 10% SAF blends by 2030, Shell also wants 10% of its 2030 jet fuel sales to be SAF, and is building capacity to blend, handle and distribute the alternative fuels to help expedite decarbonisation of air transport. “SAF will be the key technology to help decarbonise flight,” said Jan Toschka, President of Shell Aviation. “LAX is a critical North American airport hub and we’re delighted to be able to provide JetBlue and corporations on its Sustainable Travel Partners programme access to SAF, allowing them to lower their emissions while jointly contributing to investments in SAF.” 

Toschka also welcomed the broader partnership with Alaska Airlines to increase the SAF supply to the airline and to build capabilities for broader distribution. “We need support from the entire ecosystem to build a sustainable future for aviation,” he said. “This deep level of collaboration will help us put the technologies and supply chain in place to advance the industry.”

In Greenland, DCC & Shell Aviation Denmark, a joint venture between DCC Holding Denmark and Shell’s global aviation fuel division, has partnered with Air Greenland to provide SAF on flights between Copenhagen and Søndre Strømfjord/Kangerlussuaq, the largest airport in Greenland and one of the most important air corridors into the country. DCC & Shell Aviation is Denmark’s largest independent jet fuel supplier, providing logistics for and delivering Shell jet fuel to nine of the country’s airports.

Through the new agreement, Air Greenland has now introduced a SAF blend of up to 5% on the four-plus hour Copenhagen-Kangerlussuaq route, which is being upgraded from an Airbus A330-200 to a new, more fuel-efficient A330-800 neo jet. The deal is also the first to supply SAF to Copenhagen Airport.   

“We want to support the goal of Greenland becoming a sustainable destination by reducing fuel consumption and thus our CO2 emissions,” said Air Greenland’s CEO, Jacob Nitter Sørensen. “The combined impact of the SAF and our new aircraft fleet will reduce our CO2 emissions. I am proud that owing to this agreement, Air Greenland will be among the leading airlines in Europe’s green transition.”

Ashleigh McDougall, GM of Shell Aviation, Europe and Africa, said: “It’s fantastic to see Air Greenland getting ahead of the game on SAF and already voluntarily committing to proportions of SAF beyond those set to be required from 2025.”

Ulrik V. Brendstrup, CEO of DCC and Shell Aviation Denmark, said the Air Greenland deal was the largest SAF supply agreement ever signed by the company. “In light of the fact that the EU is discussing a SAF mandate starting at 2% in 2025, it is a really big step that we are now taking with Air Greenland,” he added.

The aviation fuel distributor’s Head of Sustainability & Strategy, Sune Petersen, said: “Right now, SAF produced from bio-waste is playing an important role in the shift away from fossil aviation fuel. And like other aviation stakeholders, we see SAF made from bio-waste as a good transition fuel on the road to a future where we fly on PtX-produced e-fuels.”

In addition to its Airbus A330 service between Copenhagen and Kangerlussuaq, the government-owned Air Greenland also provides a mix of commuter planes, large turboprop aircraft and helicopters to 62 domestic destinations, as well as flying to Iceland.

This article was updated on March 24 to add details of Shell’s new SAF agreement with Alaska Airlines.

Photo: DCC & Shell Aviation

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Major US and European carriers sign long-term agreements to purchase half a billion gallons of SAF https://www.greenairnews.com/?p=3688&utm_source=rss&utm_medium=rss&utm_campaign=major-us-and-european-carriers-sign-long-term-agreements-to-purchase-half-a-billion-gallons-of-saf Thu, 08 Dec 2022 18:39:29 +0000 https://www.greenairnews.com/?p=3688 Major US and European carriers sign long-term agreements to purchase half a billion gallons of SAF

Further commitments have been announced by major airlines in Europe and the US for sustainable aviation fuel, collectively totalling around 550 million gallons. Air France-KLM has signed an MoU with its long-term fuel supplier TotalEnergies for up to 800,000 tonnes of SAF, or 264 million gallons, for its group of airlines, while low-cost European carrier Ryanair has partnered with Shell for another 360,000 tonnes, or 120 million gallons, and US operator JetBlue will take at least 92 million gallons of blended product from Fidelis New Energy. The three deals add to other significant offtake agreements this year by each of the airline groups as they ramp up their decarbonisation activities. Meanwhile, Virgin Atlantic is to purchase 70 million gallons of SAF over seven years as part of a new agreement with joint venture partner Delta Air Lines. The fuel, which will be produced by Gevo, will be used on flights from the US West Coast.

The Air France-KLM agreement with TotalEnergies, a strategic partner since 2014, specifies the supply of 800,000 tonnes of SAF over 10 years, with deliveries commencing in 2023. The fuel will be used by Air France, KLM and Transavia largely for flights departing from French airports, in line with national SAF blending requirements, as well as from the Netherlands. The fuel will also comply with the airline group’s policy that any SAF it procures must not compete with human food or animal feed, that it not be derived from palm oil and that it be certified as compliant.

As of earlier this year, KLM flights from Amsterdam Schiphol have been operating with a minimum of 0.5% SAF in their jet fuel and the French government has introduced a 1% SAF mandate on flights from French airports, a level that is expected to rise to 2% in 2025 and 5% in 2030 in line with proposed EU regulation. Crop-based fuels have been excluded from use in the French mandate.

“Air France-KLM is fully committed to advancing SAF production in Europe and around the world,” said CEO Benjamin Smith. “This MoU with TotalEnergies is another building block to further the development of a French SAF industry that can meet the airlines’ needs. This therefore marks a fundamental milestone in the successful decarbonisation of our business. We are continuing to step up our efforts to reduce the impact of our operations as quickly as possible.” 

TotalEnergies is targeting 1.5 million tonnes of SAF production by 2030 using waste and residues including used cooking oil, animal fats and synthetic fuels. “This new partnership with Air France-KLM exemplifies the excellence of industry and French aerospace in committing to a more sustainable aviation sector,” said its CEO Patrick Pouyanné, adding biofuel development was a company priority. “By directly reducing the carbon intensity of the energy products used by our air transport customers, we are actively working with them to achieve net zero emissions by 2050, together with society.”

In recent initiatives, Air France-KLM group airlines have operated a range of flights using between 16% and 30% SAF sourced from TotalEnergies.

The latest SAF deal coincides with confirmation that under the group’s scope 1 and 3 emissions reduction targets, Air France Group and KLM have been assessed and validated under the Science Based Targets initiative (SBTi) as aligning with the ‘well-below 2 degrees Celsius’ objective determined as part of the 2015 Paris Agreement on climate. The strategy is primarily centred on reducing direct and indirect CO2 emissions by 30% per passenger/km by 2030 compared to 2019.

In another European partnership, low-cost carrier Ryanair has signed an MoU with global energy company Shell for the supply of SAF to more than 200 airports across Europe, in particular the airline’s biggest bases in Dublin and London Stansted.

Through this deal, the airline expects to access up to 360,000 tonnes, or 120 million gallons, of SAF between 2025 and 2030, with the fuels produced via multiple technology pathways and using a range of sustainable feedstocks. It estimates that using this amount of SAF would reduce CO2 emissions from its flights by more than 900,000 tonnes, equivalent to the output of over 70,000 Dublin-Milan services.

“SAF plays a key role in our Pathway to Net Zero strategy, and also our commitment to a target of 12.5% SAF by 2030,” said Thomas Fowler, Ryanair’s Sustainability Director. The agreement with Shell would enable the airline to procure around 20% of the SAF needed to meet this target, he said, while progressing its aggressive growth strategy, which estimates that passenger volumes will reach 168 million in FY2023, en-route to a target of 225 million per year by FY2026. 

Jan Toschka, President of Shell Aviation, said their agreement demonstrated that both companies viewed SAF as the key to net zero aviation emissions. “It is fantastic to build on our existing relationship with Ryanair to now look at what we can achieve together on sustainability,” he said. “Leadership and bold actions are needed to accelerate the decarbonisation of flight.”

In the US, JetBlue and Fidelis New Energy (FNE) have signed an MoU on SAF, through which the airline will source at least 92 million gallons of blended product over a five-year term from 2025. The fuel will be designed to achieve negative lifecycle carbon intensity by integrating carbon capture and sequestration (CCS) and biomass energy with CCS (BECCS). The SAF will be produced at FNE’s Gron Fuels GigaSystem at the Port of Baton Rouge, Louisiana, which the company estimates will produce 1 billion gallons per year of SAF, renewable diesel and other low carbon products. The new plant will also use waste process heat to generate power, producing biogas from by-products and using flexible processing methods to produce carbon-negative SAF from existing and emerging feedstocks.

Although JetBlue is already a regular user of SAF, it accounts for less than 1% of the airline’s total fuel usage. “We need significantly more supply to reach our 2040 net zero target,” said Sara Bogdan, JetBlue’s Director of Sustainability and ESG. “With partners like Fidelis and their carbon negative Gron Fuels Gigasystem, we are not only supplying our own growing SAF needs, we’re sending a powerful signal that significant demand for SAF exists. By introducing negative carbon intensity SAF to our network, we are also taking steps towards reaching true carbon neutrality as an airline.”

In addition to producing carbon negative SAF, Fidelis Co-founder and COO Bengt Jarlsjo said his company’s high-capacity carbon sink was expected to permanently sequester some 5 million tons of biogenic CO2 per year from the Louisiana facility.

JetBlue has also had a science-based, Paris-aligned climate target to reduce jet fuel emissions approved by the SBTi. The airline commits to reducing well-to-wake scope 1 and 3 GHG emissions by 50% per revenue tonne kilometre (RTK) by 2035 from a 2019 base year, with a goal of reaching net zero carbon emissions by 2040, 10 years ahead of the sector’s target. The airline said SAF is expected to be the key contributor to large-scale lifecycle emissions reduction, although it is highly dependent on availability and costs of supply.

Virgin Atlantic Airways has announced a 70 million gallon commitment to SAF with its 49% shareholder Delta Air Lines, and to be produced by Gevo. The fuel will be supplied by Delta to Virgin Atlantic at a rate of 10 million US gallons per year over seven years at either Los Angeles or San Francisco airports. It will represent 20% of Virgin Atlantic’s commitment to 10% SAF use by 2030 and equate to around 500 trans-Atlantic flights from Los Angeles.

The parties have not disclosed a start date for deliveries of SAF, which will come from one of Gevo’s future production facilities. Gevo separates sugars and proteins from sustainably farmed non-edible industrial corn, with the sugars then used to produce SAF and the proteins fed to livestock, whose manure can then be processed to develop renewable natural gas and agricultural fertiliser.

“We know that SAF has a fundamental role to play in aviation decarbonisation,” said Holly Boyd Boland, VP Corporate Development at Virgin Atlantic. “The demand from airlines is clear and Virgin Atlantic is committed to supporting the scale up of SAF production at pace. We cannot meet our collective ambition of Net Zero 2050 without it.”

In March this year, Delta signed an agreement with Gevo valued at around $2.8 billion to purchase 75 million gallons per year over seven years, subject to Gevo developing, financing and constructing one or more production facilities to fulfil the quantity.

Image: Air France-KLM

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