Commercial, Sourcing Renewables - August 2, 2022
Shell, Lufthansa Group Sign Agreement for SAF
Shell International Petroleum Co Ltd. and Deutsche Lufthansa AG (Lufthansa Group) signed a non-binding Memorandum of Understanding (MoU) for exploring the supply of Sustainable Aviation Fuel (SAF).
The agreement calls for Shell to provide the Lufthansa Group for seven years at airports across the globe, starting in 2024.
The parties contemplate negotiating towards reaching a definitive purchase agreement with the total volume supplied reaching up to 594 million gallons (1.8 million metric tons). If a definitive agreement is reached it would be one of the most significant commercial collaborations for SAF in the aviation sector and Shell’s largest SAF commitment to date.
“We are happy to enhance our long standing global business with Shell by signing this MoU,” said Katja Kleffmann, Head of Fuel Management Supply Lufthansa Group, in a statement. “As an industry we have to work jointly towards making flying more sustainable and to achieve net-zero carbon emissions by 2050. Shell is very experienced with the global handling of Jet fuel and that is one key element for our trust for smooth operations of Sustainable Aviation Fuel, too.”
The potential SAF to be supplied by Shell is to be produced by up to four different approved technology pathways and a broad range of sustainable feedstocks.
The MoU contributes to Shell’s ambition of having at least 10% of its global aviation fuel sales as SAF by 2030 and on the Lufthansa Group’s ambition to drive the availability, the market ramp-up and the use of SAF as a core element of its sustainability strategy. The Lufthansa Group is already the largest buyer of SAF in Europe and one of the airlines enabling their customers to report their emission reductions by an audited certificate.