Commercial, Sourcing Renewables - October 5, 2021
Delta Inks $1 Billion SAF Offtake Deal
Delta Air Lines completed an offtake agreement Sept. 30 for 250 million gallons of blended fuel with sustainable aviation fuel (SAF) in a deal that is estimated to be worth more than $1 billion.
The agreement was made for fuel from Aemetis and includes the supply of SAF-blended fuel over a 10-year term. The SAF will be produced at its production plant site in Riverbank, Calif., and is expected to be available for use starting in 2024.
The facility that produces the fuel is also powered by 100% renewable electricity and features a zero-carbon plant design using cellulosic hydrogen from carbon-negative waste wood. The plant then injects CO2 from the production process into an onsite sequestration well that permanently captures an estimated 200,000 metric tons of CO2 per year.
The airline is currently pursuing a net-zero ambition and is committed to maintaining carbon neutrality from March 2020 onward. To reach this target, Delta plans to replace 10% of its conventional jet fuel consumption with SAF by the end of 2030.
“When Delta committed to being carbon neutral, we also committed to continued investment and collaboration with others in the industry,” Amelia DeLuca, Delta’s managing director of sustainability, said in a statement. “This supply agreement is an important step toward the expansion of SAF, which is not only important in helping us achieve our net-zero aviation goals, but also in supporting our customers to achieve their own sustainability goals.”