Shell and Lufthansa Group in seven-year SAF supply agreement

Fuel giant Shell has today announced that it has signed a non-binding Memorandum of Understanding (MoU) with German aviation giant Lufthansa Group to explore how to drastically increase supplies of Sustainable Aviation Fuel (SAF) over the course of this decade.

The MoU sets out plans for a seven year deal starting in 2024, which would see Shell supply Lufthansa Group with up to 594 million gallons of SAF through to 2030 at airports globally.

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

The oil giant added that the agreement could be one of the most significant commercial collaborations for the nascent SAF sector as well as Shell’s largest green jet fuel commitment to date.

“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,” said Jan Toschka, president of Shell Aviation.

“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, hailed the agreement as a major milestone for the industry. “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 smooth operations of Sustainable Aviation Fuel, too.”

Shell said that the MoU contributes to its ambition of ensuring at least 10 per cent of its global aviation fuel sales are from SAFs by 2030 as well as Lufthansa Group’s ambition to drive the availability and use of SAF as a core element of its sustainability strategy.

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