Shell and Lufthansa Group Ink an Agreement for a Seven-Year SAF Supply Deal

Published on: 01 August 2022
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Shell stated that it signed a non-binding Memorandum of Understanding (MoU) with Lufthansa Group to investigate the possibility of supplying sustainable aviation fuel (SAF) to the airline over the next decade.

Shell provides up to 594 million gallons of SAF to Lufthansa Group over seven years, from 2024 to 2030, at airports worldwide.

Shell said the SAF would be produced using up to four different approved technology pathways, as well as a broad range of sustainable feedstocks.

According to the company, the contract is one of the most important business partnerships for SAF in the aviation industry and Shell's greatest SAF commitment to date.

Jan Toschka, president, Shell Aviation, said: 

"SAF is the most significant way to decarbonise aviation over the decades to come. Our relationship goes beyond commercial arrangements—it is strategic and aligned regarding the view that SAF holds the key to achieving a sustainable aviation future."

"The potential SAF purchase agreement contemplated under the MoU, by its anticipated volume size, term period and geographic scope, is expected to be a milestone if concluded and shows the way forward for decarbonisation in the aviation industry." 

Katja Kleffmann, head of fuel management supply at Lufthansa Group, said:

"As an industry, we have to work jointly towards making flying more sustainable and to achieve net-zero carbon emissions by 2050," she said. "Shell is very experienced with the global handling of jet fuel and that is one key element for our trust for the smooth operations of Sustainable Aviation Fuel, too."

Shell stated that the MoU contributes to its goal of sourcing at least 10% of its global aviation fuel sales from SAFs by 2030, as well as Lufthansa Group's goal of making the availability and use of SAFs a central component of its sustainability strategy.

Source: Business Green

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