Shell International Petroleum, one of the world’s largest oil companies, and the Lufthansa Group signed a memorandum of understanding to exploit the supply of Sustainable Aviation Fuel (SAF) to airports around the world. The intention is to supply up to 1.8 million tons over seven years. The contract would come into effect in 2024.
This agreement between Lufthansa and Shell would be one of the industry’s most crucial sustainability-related business partnerships. It would also comprise the largest SAF-related commitment made by both companies.
The cooperation would enable Lufthansa to promote greater availability and increased utilization of SAFs, which it considers essential for the industry’s CO2 neutrality. Lufthansa maintains that it is one of Europe’s largest users of SAF, and added that they intend to remain one of the world’s leading airlines in the use of this type of kerosene.
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This MoU, for Shell, is part of its plan to make at least ten percent of its global sales of jet fuel SAF by 2030. Sustainable fuel is produced without the use of fossil sources. It shows a saving in CO2 emissions when compared to conventional kerosene.
Currently, there are several production processes and different raw materials from which this fuel can be obtained. The present generation of SAF reduces CO2 emissions by about 80% compared to conventional Jet A. These fuels are mainly produced from biological waste, e.g. used cooking oils. Their main proponents claim that, in the long term, they can lead to virtually CO2-neutral aviation.
Lufthansa has been involved in SAF research and implementation for years. During this time, it has built up an extensive network of suppliers and partners. The company is currently paying particular attention to power-to-liquid and sun-to-liquid technologies, which promise to form the next generation of sustainable fuels. These categories implement renewable energies or solar thermal energy within the production process.
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Lufthansa Group says it has a clearly defined path to CO2 neutrality: by 2030, the company’s net CO2 emissions are to be halved – compared to 2019 – and by 2050, it wants to achieve a CO2-neutral balance. To this end, the company is implementing -among other plans- the modernization of its fleet, the continuous optimization of flight operations, and the use of sustainable aviation fuels.
