German airline Lufthansa on Monday said that it and oil and gas giant Shell had agreed to jointly explore the supply of sustainable aviation fuel (SAF) at airports across the globe.
The parties intend to agree on a contract for a total supply volume of up to 1.8 million metric tons of SAF starting in 2024, over a term of seven years.
The agreement, expected to be the largest SAF commitment of both companies to date, builds on Shell's ambition to have at least 10% of its global aviation fuel sales as SAF by 2030.
SAF, the aviation fuel that is produced without the use of fossil energy sources, such as crude oil or natural gas, is expected to leading the way for decarbonization of aviation.
The current generation of SAF, which saves 80% CO2 compared to conventional kerosene, is mainly produced from biogenic residues, for example from used cooking oils.
By using SAF, customers of Lufthansa can already fly CO2-neutral today. In addition, they can document their reduced CO2 emissions with audited certificates and have the CO2 savings credited to their individual CO2 balance.
Shares of Lufthansa Group closed Friday's trading at $6.16, down $0.03 or 0.48% from the previous close.
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