EasyJet announced the signing of a memorandum of understanding for the development of long-term supply of sustainable aviation fuel (SAF) for easyJet’s operations in Europe and the U.K. 

The agreement with ATOBA Energy in partnership with World Fuel Services supports the easyJet’s decarbonization strategy. The collaboration is expected to unlock the SAF value chain through the combination of ATOBA’s SAF aggregation, enabling management of pricing and supply volatility risk for airlines and World Fuel’s global jet fuel logistics, blending, storage and distribution infrastructure.

EasyJet is seeking competitive SAF market prices in an industry with diverse competing technologies. This conflict of expectations currently hinders the development of SAF production projects, but ATOBA’s unique business model brings a compelling solution.

By offtaking from diversified producers that use production technologies like alcohol to jet, Gas-Fischer Tropsch, or power to liquids, ATOBA mitigates technological and pricing risks associated with the various SAF production pathways. The company also facilitates the closing of long-term offtake agreements among airlines, jet-fuel distributors, SAF producers, and financial institutions.

World Fuel intends to manage logistics, blending, storage and regulatory fulfillment for the E.U. and U.K. mandates. 

“We are deeply committed to fostering the growth of the Sustainable Aviation Fuel industry and are thrilled to see ATOBA introduce their innovative approach to catalysing the development of the SAF market,” said Raminder Shergill, director of tax and fuel strategy at easyJet, in a statement. “By addressing the long-term offtake challenges that have hindered investment in SAF projects, ATOBA’s approach paves the way for accelerated industry expansion, greater investment confidence, and credible pricing and supply security for easyJet.”