Air France-KLM confirms strategic cooperation with DG Fuels
Published by Poppy Clements,
Assistant Editor
Hydrocarbon Engineering,
The Air France-KLM Group is fully committed to reducing its carbon footprint and aims to be a frontrunner in sustainable aviation. In 2022, the group was the world’s largest user of SAF, representing 17% of the world’s total production. By comparison, the group only accounts for 3% of the world’s consumption of conventional kerosene.
In October 2022, Air France-KLM announced an offtake agreement for 600 000 t of SAF from DG Fuels, to be delivered between 2027 and 2036.
The group has announced a step forward in its cooperation with DG Fuels, with Air France investing US$4.7 million in the SAF producer. This investment – a first for Air France-KLM – represents a key development in the strengthening of the partnership between the Air France-KLM Group and DG Fuels. It will support the completion of the development work necessary to reach the FID on DG Fuels’ first SAF plant, which will be located in Louisiana. This investment confirms the group’s ambition to participate in the financing of project studies that enable the development of SAF production capabilities worldwide, with the aim of gradually establishing a diversified network able to meet worldwide demand.
In addition to this investment, Air France-KLM has acquired a new option to purchase up to 75 000 tpy of SAF from DG Fuels (45 000 t in Maine; 30 000 t in Louisiana). 45 000 incremental offtake relates to future SAF that will be produced by DG Fuels’ second US production facility (expected to be located in Maine), with deliveries planned to start as early as 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 decarbonisation trajectory factors in the incorporation of a minimum of 10% SAF by 2030, alongside fleet renewal and eco-piloting.
“Air France-KLM welcomes this expanded cooperation with DG Fuels. Supporting the scale-up of advanced waste-to-aviation fuel technology is a crucial step to growing the SAF industry. This is the first time Air France-KLM has made a financial investment in a SAF producer and we look forward to further reinforcing our long-term partnership with DG Fuels," said Constance Thio, EVP Human Resources and Sustainability, Air France-KLM.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/13112023/air-france-klm-confirms-strategic-cooperation-with-dg-fuels/
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