IAG to receive 785,000 tonnes of eSAF

IAG Group has entered into an agreement with carbon transformation company Twelve for 785,000 tonnes of sustainable aviation fuel. [caption id="attachment_57141877" align="alignright" width="391"] (Courtesy/Twelve)[/caption] The agreement includes a 14-year contract with Berkeley, Calif.-based Twelve for production of electro-fueled sustainable aviation fuel (eSAF) for IAG’s five airlines, including: British Airways Aer Lingus LEVEL Iberia Vueling Twelve was founded in 2015 and raised $130 million in series B funding in 2022. The company also signed deals with Alaska Airlines and Micro soft for SAF production the same year, according to a company press release. Using eSAF can reduce emissions produced from aviation by up to 90%, according to a release from IAG on Feb 28. IAG spokesperson Luke Warren , told Air Cargo Next that “ eSAF is a type of SAF that is produced using power-to-liquid technology, while SAF can be produced using various methods such as biomass or waste-to-energy conversion.” IAG expects its first shipment of eSAF from Twelve by early 2025, according to the release. Neither company disclosed the SAF purchase price to Air Cargo Next . Twelve is constructing a demonstration plant in Moses Lake, Wash. , that will supply IAG’s first SAF deliveries, the release stated. SAF shortage Aviation accounts for 2% to 3% of global carbon emissions, according to IATA . The organization launched its initiative in 2021 to reach net zero by 2050. IAG plans to use 10% SAF on all flights by 2030 and has signed deals one-third of its overall goal, the release stated. While SAF is widely accepted as the clearest path to net-zero targets, critics have said that SAF is not scalable in the quantities needed to reach the goal. “The shortage of sustainable fuel globally continues to be a problem for our industry, although innovative companies like Twelve are an important part of the solution,” Luis Gallego , IAG’s chief executive, said in the release. “This new deal will contribute towards our 2030 SAF target. We would like to see similar projects scale in Europe, and we look forward to working with governments across our key markets to build an SAF industry to deliver jobs, economic growth and a stable supply of SAF.” In 2023, 600 million liters of SAF were produced globally, more than double the amount produced in 2022, according to IATA. However, 450 billion liters are needed to reach net zero by 2050, according to TIACA . ESAF benefits, drawbacks Unlike SAF, eSAF “does not face feedstock limitations and has a high degree of emissions reduction versus conventional jet fuel,” Warren said. “Additionally, it has a relatively low land- and water-use footprint.” While SAF is about twice as expensive as kerosene jet fuel, which is currently $2.66 per gallon, eSAF is about eight times more expensive than conventional jet fuel, according to fuel producer BP . Despite this roadblock, IAG reduced its overall carbon footprint in 2023 by 3.6% year over year, Gallego said during the company’s earnings call on Feb. 29. “We have also made significant progress on our sustainability agenda,” Gallego said. “That, you know, is a key priority for us and all of our stakeholders ... and this week we announced a new contract that means that we have now secured one-third of our soft targets for 2030.” Register here for Air Cargo Next ’s free webinar, “The Role of Drones in the Future of Air Cargo,” on Tuesday, March 26, at 11 a.m. ET.

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