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

Correspondent

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“Our commitment to net zero by 2050 is fixed and firm,” IATA’s Director General, Willie Walsh, told delegates at the opening of this year’s annual gathering of airline executives, held recently in Istanbul. However, on the same day, one of the industry’s leading figures, Akbar Al Baker, CEO of Qatar Airways, was telling CNN that net zero couldn’t be achieved within the 2050 timeframe and setting the goal was a “PR exercise”. The results of a survey of aviation industry decision-makers in six countries conducted by Ipsos on behalf of aircraft engine manufacturer GE Aerospace ahead of the Paris Air Show shows a similar difference of opinion as to whether the industry will meet its net-zero goal by mid-century. While a plurality (46%)  believe it can be met, 32% said it will not and 22% were unsure. On average, respondents believe it will be met by 2055.

In his interview with CNN, Al Baker, a current member and former chairman of the IATA Board of Governors, said industry targets were unrealistic, given the current volumes of sustainable aviation fuels being produced. Due to a lack of raw materials, even the 2030 volume target would not be reached, he added. He told CNN’s Richard Quest that net zero is achievable, “but to do it in the 2050 timeframe, the industry is far behind.”

In his opening address, Walsh said: “The sustainability challenge is, bar none, the biggest that we will face as leaders of the aviation industry. This will be difficult and take time.” Responding to Al Baker’s comments, he told CNN: “I think it would be wrong for us to try and convince people that this is going to be easy, and it’s going to be cheap – it’s not. But the idea that we can’t do it – no, I don’t accept that.”

The survey, conducted in May, of 325 aviation executives in China, India, UAE, France, UK and USA, showed 76% of respondents believed sustainability has fundamentally changed the way the industry operates, with a plurality (30%) identifying that meeting the industry’s sustainability goal is the top current challenge. A strong majority (88%) reported their organisations already had sustainability strategies in place, with most saying these strategies had already had a major or moderate impact on how their company operates (74%), invests (73%) and hires (62%).

The major hurdles cited by respondents in meeting the net zero challenge were rising costs, budgetary pressure, supply issues and energy resources. They identified advancements in fuels (SAF and hydrogen) and engines would play the biggest role in reaching net zero but were split as to whether progress is happening at the right pace, with 51% saying it is too slow. Government is seen as having a key role in applying the most pressure to accelerate decarbonisation, followed by investors.

The responses showed an overall even split on whether consumers were prepared to pay more for a sustainable flight. However, 74% of respondents from China believed they were willing but 65% of Indian respondents said industry could not rely on a willingness by consumers to pay more.

Commenting on the results of the survey, Allen Paxson, VP & GM Commercial Programs Strategy at GE Aerospace, said: “They show the aviation industry is focused on the goal of achieving net zero emissions by 2050, while also recognising the need to accelerate efforts and ensure all key stakeholders are on the playing field. With GE Aerospace and our partner engines powering three-quarters of the world’s flights, we recognise the important responsibility we have to meet the industry ramp and to do so more sustainably and more efficiently for our customers.”

Photo (Adam Senatori): GE’s GEnx engines power Qatar Airways’ Boeing 787-9 aircraft

Christopher Surgenor

Editor

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Two years after it was launched as a pilot by IATA and CBL Markets, part of Xpansiv CBL Holding Group (XCHG), the Aviation Carbon Exchange (ACE) has seen its first transaction via the IATA Clearing House (ICH), which makes it easier for airlines to purchase carbon credits using IATA’s financial back-end process. The new technical integration with the ICH functionality will make the need for financial settlements through a third party unnecessary and enable transactions to be seamless, risk-free and quicker, said IATA.  As a centralised marketplace, the ACE was launched in response to a requirement by airlines to purchase eligible units in compliance with the ICAO carbon offsetting scheme CORSIA. Although the Covid-19 pandemic has largely pushed back that need by a number of years, IATA and non-IATA airlines can trade on the exchange to purchase offsets for voluntary passenger offset programmes and net zero commitments. According to IATA, several airlines have already used the exchange, with JetBlue being the first to make a trade, but Qatar Airways is the first to use the new integration with the ICH.

“Since it was launched in November 2019, the ACE has provided airlines with a secure access to real-time carbon offset data, with full price transparency. We’ve now completed the technical integration of the ICH functionality with the ACE, which is a significant milestone to make financial carbon offset transactions seamless, safe and timely for years to come,” said Michael Schneider, Assistant Director Environment Programs, in an IATA blog.

With an annual turnover of around $56 billion and over 430 participants, the IATA Clearing House provides billing and settlement services in multiple currencies for the air transport industry. Open to IATA and non-IATA airlines, airline-associated companies and travel partners, it is a “netting” solution for the clearance of passenger, cargo, UATP (corporate travel) and non-transportation billings between them.

“All of our member airlines already have access into IATA’s financial back-end process and can simply use the existing connectivity to have their trades settled,” explained Schneider. “To give you an example, let’s say airline X makes a $30 million trade for offsets. In the absence of the ACE/ICH set-up, it usually requires the involvement of numerous people to complete a trade, from procurement to treasury to finance, resulting in a lengthy process that can take weeks. By then the carbon price will no longer be guaranteed and they face issues each time they trade, because the price cannot be locked in.

“Using the ICH, on the other hand, will reduce the time to two days, offering a secure and safe mechanism to the airline. Furthermore, on the seller side the ICH guarantees payment, again with a speedy two-day process, so it’s excellent news for all participants.”

He told GreenAir that total trading volumes on the exchange in 2021 were close to 5 million tonnes of “high-quality” credits, most but not all CORSIA-eligible units. He pointed out that many forestry and REDD+ projects can be of high quality but have not yet been approved under the review process by ICAO’s Technical Advisory Body, which assesses and recommends programmes and units for eligibility under CORSIA.

“These non-CORSIA credits can be appealing to an airline in the context of its voluntary passenger offset programme where it is looking for a specific geographical region and/or the project is linked to a number of UN Sustainable Development Goals, for example gender equality and improving health and living conditions,” said Schneider. “So the ACE makes an important contribution to climate finance, providing project developers the opportunity to list their credits issued on the exchange and to reach out directly to airlines, instead of selling through intermediaries.”

He added: “Airlines’ individual offset commitments, the use of credits for passenger offset programmes and also to furnish corporate customers with credits has driven most of the demand in 2021 and we expect to see the same in the near future.”

Commenting on Qatar Airways’ trade following the ACE/ICH integration, IATA Director General Willie Walsh said: “CORSIA is a key tool for helping the industry achieve carbon-neutral growth as part of our long-term target to reach net zero carbon emissions by 2050. The Aviation Carbon Exchange enables airlines to purchase their offsetting credits with maximum transparency and minimum bureaucracy. By performing the first-ever trade on the ACE using the IATA Clearing House, Qatar Airways has demonstrated its support for the ICH as a means of pioneering efficiency in transactions that will make the purchase of quality carbon offsets easier for all airlines.”

Responded Akbar Al Baker, Qatar Airways Group Chief Executive: “Qatar is one of the States that voluntarily participates in the pilot phase of CORSIA. As a leader in aviation, Qatar Airways is driven by an ambitious environmental sustainability vision and we are determined to support Qatar in this pursuit by remaining compliant with the global scheme. We welcome the use of the Aviation Carbon Exchange as it enables airlines to invest in CORSIA eligible emission reduction units, further supporting Qatar Airways’ commitment to invest in a low-carbon future, while reducing our financial risk.”

Photo: Qatar Airways

Editor’s note: GreenAir is a co-organiser of the international Aviation Carbon conference and we are delighted to announce that Xpansiv CBL will be the lead sponsor of our 10th anniversary event, Aviation Carbon 2022, which will be held, hopefully in-person, at the London Heathrow Marriott on October 17-19. More details will be posted shortly.

At least nine of the 14 members of the oneworld airline alliance will between them purchase 350 million gallons (1.3 billion litres) of blended sustainable aviation fuel from California-based renewable fuels company Aemetis for flights from San Francisco International Airport over a seven-year period, commencing in 2024, reports Tony Harrington. Initially, Alaska Airlines, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, Qantas and Qatar Airways will look to using the fuel, a blend of 40% sustainable product and 60% petroleum jet fuel, with other oneworld carriers potentially joining the programme in coming months. American Airlines, with the largest share, has signed an offtake for 280 million gallons of blended fuel (120 million gallons of SAF) with Aemetis. In a separate initiative by a oneworld member, Malaysia Airlines has partnered with Petronas, the Malaysian government-owned oil and gas company, to introduce SAF by 2025 and to explore new technologies to further reduce its carbon emissions.

The oneworld partnership with Aemetis followed a joint request to fuel suppliers for the purchase of sustainable aviation fuel. Waste wood from orchards and forests will be used to produce cellulosic hydrogen, which will then be combined with waste and non-edible sustainable oils, and zero carbon intensity hydroelectric power, to make sustainable aviation fuel at the Aemetis Carbon Zero plant, which is currently being developed in Riverview, near California’s capital, Sacramento. The process technology is licensed from Axens in France, a global technology provider to the oil and chemical industries.

The renewable jet/diesel plant is on the site of a 125-acre former US Army Ammunition production plant. To further reduce carbon intensity, the Carbon Zero production process includes injecting CO2 from the production plant into a sequestration well at the plant site to permanently capture an estimated 200,000 tonnes per year of CO2.

The Chairman of oneworld, Qatar Airways Group Chief Executive Akbar Al Baker said: “Our alliance is standing together with the industry in supporting the transition to net zero. As sustainable aviation fuel will play an important role in meeting aviation’s decarbonisation targets, we are proud to establish another milestone and drive the SAF use at commercial scale.” The alliance’s Chief Executive, Rob Gurney, added the Aemetis deal “continues to demonstrate what we can achieve together as an alliance and underlines the importance of collaboration in the important work to advance environmental sustainability. This latest milestone signals our commitment in driving forward momentum for the development of sustainable aviation fuel.”

The American Airlines purchase has an aggregated value of more than $1.1 billion, including LCFS, RFS, 45Q and tax credits. American has agreed to take delivery of 16 million gallons of Aemetis SAF annually over a seven-year period from 2024, with the blended fuel delivered to SFO.

“We’re proud to join with our oneworld partners in supporting the growth of SAF through this agreement with Aemetis, and we’re eager to continue collaborating with like-minded partners to meet aviation’s climate challenge,” said the airline’s CEO, Doug Parker.

As well as producing SAF, said Eric McAfee, the founder and CEO of Aemetis, the company’s new plant is designed to deliver direct social benefits, cutting air pollution in disadvantaged local communities by reducing orchard wood burning in fields, and creating more than 2,000 direct and indirect jobs in a lower-income agricultural area.

On the opposite side of the Pacific, oneworld member Malaysia Airlines Group (MAG) has signed Memoranda of Understanding with Petronas Dagangan Berhad (PDB) and Petronas Research Sdn Bhd (PRSB) to help decarbonise air transport through the use of low carbon and sustainable fuels, innovation and technologies for carbon reduction, carbon offset and waste management, research and development for low carbon applications, and a combined advocacy campaign. As well, the companies will explore carbon capture technologies and potential uses for robotics, remotely operated infrastructure, machine learning and augmented reality in their collaboration to help decarbonise air transport. The company’s five airline divisions, led by Malaysia Airlines, operate more than 100 aircraft, ranging from regional DHC-6 Twin Otters to long haul Airbus A350s.

“MAG is committed and will continue to play an active role towards achieving net zero carbon emissions by 2050,” said the Group’s CEO, Captain Izham Ismail. “We believe SAF is one of the most significant components for aviation and we are proud to announce this landmark collaboration with one of our top suppliers, underlining Petronas’ support towards this goal.  We also look forward to the support from all stakeholders including key suppliers across the ecosystem, the government and customers.” 

The California and Malaysia deals closely follow the collective decision of oneworld’s members that by 2030, SAF will comprise 10% of the fuel they use to power their flights. The initiatives also coincided with an agreement by British Airways to introduce, potentially within months, SAF produced in the UK by oil refiner Phillips 66 (see article), and an announcement by Qantas that it was finalising its first major order for SAF, and discussing with manufacturers Airbus, Boeing and Embraer ways to expedite the development of SAF-compatible aircraft, ahead of an order for 100-plus narrowbody jets.

Photo: Qatar Airways

Qatar Airways has launched a voluntary carbon offset programme for passengers in partnership with IATA and ClimateCare. The programme has been developed through IATA’s Carbon Offset Program, which aims to bring standardisation to airline passenger offset programmes and share best practice in the structure and implementation of carbon offsetting. The IATA programme has been independently audited and approved by the Quality Assurance Standard (QAS), which the airline body says is the world’s highest standard for carbon offsetting, with IATA being one of only four organisations worldwide to meet this standard. Contributions from the Qatar Airways programme will be directed to the Fatanpur Wind Farm project in India, which generates and supplies clean energy with a combined output of 108 MW to the Indian National Grid, avoiding around 210,000 tonnes of greenhouse gas emissions annually.

“We are pleased to be able to offer our customers the opportunity to offset the carbon emissions associated with their journeys with us,” said Qatar Airways’ Group Chief Executive, Akbar Al Baker. “As an environmentally responsible airline, our modern fleet of technologically advanced aircraft, together with our fuel efficiency programme, combine to optimise aircraft performance and reduce the environmental impact of flying. Our customers can now help to further minimise their environmental footprint by opting to contribute to our carbon offset programme.”

Customers can opt in when purchasing tickets through the Qatar Airway’s website and mobile application, with booking information, including information regarding the carbon offset programme, available in multiple languages. The airline assures customers the credits they buy are from projects delivering independently verified carbon reductions as well as wider environmental and social benefits.

QAS-approved offsets are checked against a 40-point checklist that includes emissions calculations, carbon reduction project selection and information provision. Carbon calculation uses ICAO methodology supplemented with actual airline carbon data. With certain limitations, approved offsets include UN CDM CERs, Gold Standard or VCS (version 2007 onwards) VERs and approved offsets based on land use employing sustainable REDD+ project methodologies.

The Fatanpur project consists of 54 wind turbines, installed in and around villages in the central Indian state of Madhya Pradesh. They displace electricity generated from fossil fuel sources from the Indian grid.

“We are pleased to be working alongside Qatar Airways and IATA to retire high quality, independently verified carbon credits on behalf of Qatar Airways’ customers who want to take responsibility for the environmental impact of their flight,” said Robert Stevens, ClimateCare’s Director of Partnerships. “Their support for the Fatanpur project not only reduces global carbon emissions, it also provides employment opportunities; delivers improved education through providing materials and expertise to nearby schools; and supports a mobile medical unit – enabling improved healthcare to the local community.”

ClimateCare has over 20 years’ experience working with public and private sector clients to fund sustainable development projects around the world, with offices in the UK and Kenya, and is currently ranked the top B Corp in the UK. B Corp is a global movement of 3,500 companies “that are using business as a force for good”.

Welcoming Qatar Airways to the IATA Carbon Offset Program, IATA Director General Alexandre de Juniac said: “There is no alternative to aviation when it comes to long-distance travel and carbon offsetting is an immediate, direct and pragmatic means of limiting the impact of climate change.”

Airlines that have been audited and are currently QAS certified include Mango Airlines, South African Airways, SriLankan Airlines, TAP Portugal and Thai Airways.