<article><p class="lead">Shell and German airline Lufthansa have signed a non-binding initial agreement to explore the potential for Shell to supply sustainable aviation fuel (SAF) to the airline from 2024-30.</p><p>The firms intend to research four potential SAF 'pathways', with the intention of signing an offtake agreement for up to 1.8mn t. </p><p>Routes to an agreement include a HEFA SPK pathway, which uses biogenic feedstocks such as used cooking oil (UCO) to produce HEFA SAF. Shell plans to build an 820,000 t/yr biorefinery in Rotterdam, half of which will be HEFA SAF. The facility will be on the Pernis refinery site and production is <a href="https://direct.argusmedia.com/newsandanalysis/article/2254657">expected to start in 2024</a>.</p><p>Shell and Lufthansa also plan to research non-biogenic SAF pathways and feedstocks, such as hydrogen, which can be used to produce synthetic SAF using the power-to-liquid (PtL) pathway. Most of the roughly 230,000 t/yr of PtL SAF capacity due online globally by 2028 will be in Europe, and the continent's first synthetic aviation fuel plant is up and running in Germany, where a synthetic SAF mandate could be introduced in 2026.</p><p>Lufthansa expects to halve its 2019 carbon emissions by 2030, and plans to be carbon neutral by 2050. The airline has invested $250mn in SAF for the next three years. Shell aims for 10pc of all its aviation fuel sales to be SAF by 2030.</p><p class="bylines">By Bea O'Kelly</p></article>
