Air France-KLM has announced a strategic investment of USD 4.7 million (EUR 4.39m) in DG Fuels LLC, as part of its commitment to bolster the development of a sustainable aviation fuel (SAF) plant in Louisiana. The investment is intended to assist DG Fuels in completing crucial development work, paving the way for a Final Investment Decision (FID) on the ambitious project, projected to produce 180 million gallons (681 million liters) of biofuel annually.
The FID, with an estimated project value of USD 4.2 billion, is anticipated to be reached early next year, as indicated in a previous statement by the airline group.
In addition to the financial investment, Air France-KLM has secured a new option to purchase up to 75,000 tonnes of SAF per year from DG Fuels, with deliveries slated to commence in 2029. This agreement builds upon a previously established long-term offtake contract between the two entities, solidifying their ongoing partnership.
Constance Thio, Executive Vice President of Human Resources and Sustainability at Air France-KLM, highlighted the significance of this financial investment, stating, “This is the first time Air France-KLM has made a financial investment in a SAF producer, and we look forward to further reinforcing our long-term partnership with DG Fuels.”
The airline holding company is actively working towards its sustainability goals, aiming to incorporate a minimum of 10% SAF into its fuel mix by the year 2030.
