Two new biojet supply partnerships agreed

  • : Biofuels, Oil products
  • 21/07/15

Two new partnerships aimed at scaling up the production and use of sustainable aviation fuel (SAF) have been agreed, one focused in Europe and the other a global initiative. The new biojet partnerships coincide with the EU's proposal for a SAF blending mandate, which is expected to boost investment in cleaner aviation fuels in Europe.

Spanish integrated firm Repsol and Spanish airline Iberia, operated by airline group IAG, have agreed to work together to promote sustainable mobility through several initiatives, including SAF research and production. The companies are also aiming to develop processes to produce and supply electricity and renewable hydrogen to decarbonise Iberia's fleet of land vehicles.

IAG said earlier this year that it will buy 1mn t/yr of SAF by 2030 and aims to power 10pc of its flights with biojet by the end of the decade. Repsol has produced co-processed SAF at its industrial complex in Tarragona and at its Puertollano refinery.

Separately, biofuels producer SkyNRG and US aircraft manufacturer Boeing have agreed to scale up the use and availability of biojet globally. Boeing said it will also invest in SkyNRG's planned SAF production project in the US, in which Alaska Airlines is also a partner. SkyNRG's first US SAF production facility will supply airports and airlines on the west coast. Boeing's investment in the project includes advanced purchases of SAF from the facility for use in company flight tests and other operations.

The companies say they will also work together to accelerate SAF development globally, focusing on scaling up production capacity, building awareness and engaging stakeholders throughout the value chain, including airlines, governments and environmental organisations. Earlier this year, Boeing said all its commercial planes will be capable and certified to fly on 100pc SAF by 2030.

Under the EU's SAF mandate proposal, released yesterday as part of a wider package of climate and energy legislation, aircrafts landing at EU airports would be required to use blended jet fuel with a mandated SAF share of 2pc by 2025, 5pc by 2030, 20pc by 2035, 32pc by 2040 and 63pc by 2050. Synthetic aviation fuels, including hydrogen, would rise from a 0.7pc share by 2030 to 11pc by 2045 and 28pc by 2050 under the proposals.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more