European airlines are intensifying efforts to secure a sustainable aviation fuel (SAF) supply, aiming to align with the European Union's targets for reducing the aviation sector's carbon footprint. Adoption of alternative fuels derived from bio-based materials could potentially slash carbon emissions by up to 80%, providing a crucial avenue for the industry to achieve its net-zero emissions objective by 2050.
Virgin Atlantic, in a noteworthy move, plans to underscore the significance of alternative fuels by operating a 100% SAF-powered flight from London to New York City on Tuesday. Despite its potential environmental benefits, SAF currently constitutes less than 0.1% of global aviation fuel usage and comes with a threefold cost compared to conventional jet fuel when produced from waste oils. Versions made from green hydrogen can incur even higher costs.
Several European airlines have entered agreements and investments in the pursuit of sustainable aviation fuel. Air France-KLM invested $4.7 million in DG Fuels' SAF production plant in Louisiana, targeting 10% SAF usage for its flights by 2030. EasyJet signed a five-year SAF supply agreement with Q8Aviation, while Finnair inked a $192 million deal with Gevo for 21,000 metric tons of SAF per year from 2027. IAG, the parent company of British Airways and Iberia, secured 14,700 metric tons of SAF from Phillips 66 in 2023, with Microsoft contributing to the deal.
Icelandair signed an MoU with IdunnH2 for up to 45,000 metric tons of SAF from 2028 onwards, Jet2 invested in a SAF production plant in northern England, and Lufthansa strengthened its SAF partnership with OMV, aiming to produce 60,000 metric tons per year in Germany from 2026. Norwegian Air partnered with Norsk e-Fuel for a SAF production plant in Norway, operational by 2026.
Ryanair purchased 500 metric tons of SAF from OMV and signed agreements with Shell, Repsol, and Neste, while Wizz Air invested £5 million in Firefly to supply up to 525,000 metric tons of SAF to its British operations from 2028. Virgin Atlantic, in collaboration with Neste, acquired 2,000 metric tons of SAF and agreed to purchase 260,000 tons from Gevo by 2030 through a joint venture with Delta.
