Air France-KLM Group is to buy more than one million tons of sustainable aviation fuel (SAF) from supplier Neste over an eight-year period from 2023.
The European aviation giant called the deal the “one of the largest of its kind” in the airline sector. Using Neste’s SAF reduces greenhouse gas emissions by up to 80 per cent compared with traditional jet fuel.
Air France-KLM has already been working with Neste as part of its strategy to cut carbon emissions by 30 per cent by 2030 compared to 2019 levels. This includes using at least 10 per cent SAF to power flights, alongside renewing its fleet with more efficient aircraft and eco-piloting.
Fatima Gloria de Soussa, Air France-KLM Group’s director of sustainability, said: “This landmark partnership with Neste is an important and concrete step towards the decarbonisation of our operations.
“This contract embodies our long-term commitment to the development of SAF's production capabilities around the world to the benefit of the industry as a whole.”
Air France-KLM’s new agreement with Neste builds on a SAF supply deal which started in 2019. KLM was also one of the first airlines to start using Neste’s MY Sustainable Aviation Fuel.
Matti Lehmus, president and CEO of Neste, added: “Neste is fully committed to helping the aviation industry achieve its 2050 net-zero carbon emissions target, and sustainable aviation fuel will play a central role in that effort.
“Today's announcement, which marks a significant next step forward in our co-operation with Air France-KLM Group, underscores how we continue to support companies to reduce their greenhouse gas emissions.”
Air France-KLM’s announcement is one of a string of recent deals by major airlines to receive supplies of SAF over the coming years as a key part of their decarbonisation efforts.
The global aviation industry, through airline association IATA, has vowed to reach net-zero for carbon emissions by 2050 with the use of SAF being the major component to achieving this goal.