Air France-KLM confirms its strategic cooperation with DG Fuels by investing in a production plant SAF (sustainable aviation fuel) in the United States.
Air France-KLM has invested financially in DG Fuels in order to support thecompletion of work of development necessary to reach the final investment decision concerning the first factory of DG Fuels, based in Louisiana and specializing in sustainable aviation fuel (SAF). The Franco-Dutch group has acquired an option to purchase up to 25 million gallons / 75,000 tonnes of SAF per year over a period of several years starting in 2029. This option is in addition to the long-term purchase contract announced by Air France-KLM and DG Fuels last year. As a reminder, in October 2022, the Air France-KLM group signed two contracts with suppliers Neste and DG Fuels for the supply of 1.6 million tonnes of sustainable aviation fuel, ensuring its supply with the objective of incorporating 10% SAF from here to 2030.
The Air France-KLM Group says in a press release “fully committed to reducing its carbon footprint and wishes to be a pioneer in sustainable aviation”. In 2022, the Group was the world’s first userl of SAF, with a volume representing 17% of world production. In comparison, Air France-KLM represented at the same time only 3% of global consumption of conventional keroseneaccording to Air France-KLM.
This investment confirms the Group’s ambition to participate in the financing of project studies enabling the development of SAF’s production capacity, in order to gradually establish a diversified supply network, capable of meeting global needs. In addition to this investment, Air France-KLM has acquired a new option to purchase up to 75,000 tonnes of SAF per year from DG Fuels, with deliveries planned from 2029.
Fully committed to reducing its environmental impact, the Air France-KLM Group aims to reduce its CO2 emissions per passenger/km by 30% by 2030 compared to 2019. Its decarbonization trajectory provides for the integration of ‘a minimum of 10% of SAF by 2030, alongside other levers such as the renewal of fleet and theeco-steering. “Supporting the development of advanced waste-to-aviation fuel technology is a crucial step for the growth of the SAF industry. This is the first time that Air France-KLM has invested financially in an SAF producer and we look forward to strengthening our long-term partnership with DG Fuels »said Constance Thio, executive vice-president of human resources and sustainable development at Air France-KLM.
According to the attached press release, thanks to its high-efficiency carbon conversion process, DG Fuels maximizes the amount of SAF produced from a fixed amount of biomass. This efficiency, combined with reasonable scale, results in production costs very unitary downenabling DG Fuels to achieve sustainable profitability while providing airlines and other SAF customers with competitive prices compared to conventional fuel. The SAF produced by DG Fuels do not in any way compete with global food needs, require very little water and are produced in facilities that produce virtually no atmospheric emissions. In line with its commitment to using renewable energy, DG Fuels supports the development of wind, solar and other forms of carbon-free energy.
For departures from France or the Netherlands, remember that the airline group Air France-KLM and TotalEnergies signed a memorandum of understanding for the supply by the oil group of more than one million cubic meters, or 800,000 tonnes, of sustainable aviation fuel (SAF) to the three airlines (with the low cost Transavia) over a period of 10 years, starting in 2023.
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