Air France-KLM and DG Fuels Join Forces for SAF Tech

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KnowESG_Air France-KLM and DG Fuels Join Forces for SAF Tech
Image courtesy of Air France-KLM

The Air France-KLM Group is wholeheartedly dedicated to minimising its carbon footprint and strives to be a leader in sustainable aviation.

In 2022, the Group claimed the title of the world's largest user of Sustainable Aviation Fuel (SAF), constituting 17% of the global production. This is a stark contrast to the Group's mere 3% contribution to the world's consumption of conventional kerosene.

In October 2022, Air France-KLM disclosed an offtake agreement for 6,00,000 tonnes of SAF from DG Fuels, scheduled for delivery between 2027 and 2036.

In a significant move, the Group is now taking its collaboration with DG Fuels to the next level by investing USD 4.7 million in the SAF producer. This investment, marking a historic first for Air France-KLM, signifies a pivotal development in the deepening partnership between the two entities.

The funds will facilitate the necessary development work leading up to the Final Investment Decision (FID) on DG Fuels' inaugural sustainable aviation fuel plant, slated for construction in Louisiana. This investment underscores the Group's aspiration to contribute to financing project studies that foster the global expansion of SAF production capabilities, with the ultimate goal of establishing a diverse network capable of meeting worldwide demand.

In addition to this groundbreaking investment, Air France-KLM has secured a new option to acquire up to 75,000 tonnes of SAF annually from DG Fuels, with deliveries set to commence as early as 2029.

As part of its unwavering commitment to reducing environmental impact, the Air France-KLM Group aims to achieve a 30% reduction in CO2 emissions per passenger/km by 2030 compared to 2019. This decarbonisation trajectory encompasses the incorporation of a minimum of 10% SAF by 2030, alongside initiatives such as fleet renewal and eco-piloting.

Constance Thio, EVP Human Resources and Sustainability at Air France-KLM, expressed enthusiasm about the expanded cooperation with DG Fuels, emphasising the significance of supporting advanced waste-to-aviation fuel technology. Thio noted that this financial investment represents a new chapter for Air France-KLM and anticipates further strengthening their long-term partnership with DG Fuels.

Christopher Chaput, President & CFO of DG Fuels, shared his delight in broadening the strategic relationship with Air France-KLM. He emphasised the importance of this expansion for both DG Fuels and the aviation industry, signalling momentum toward the successful implementation of their first SAF facility and ambitious scaling plans across the United States, Europe, and Asia.

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Source: Air France-KLM 

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