Aer Lingus and British Airways owner IAG has today announced its largest Sustainable Aviation Fuel (SAF) purchase agreement to date, with e-SAF (power-to-liquid) producer Twelve.
Under the terms of the 14-year deal, US-based Twelve will supply IAG with 785,000 tonnes of e-SAF - made from CO2, water and renewable energy - to support its five European airlines, Aer Lingus, British Airways, Iberia, Vueling and LEVEL.
It said the next generation fuel will reduce lifecycle greenhouse gas emissions by up to 90% compared to conventional jet fuel.
IAG said it is the first European airline group to announce an e-SAF deal, and today's deal will allow it to continue increasing its SAF use, which was approximately 12% of the world's supply in 2023.
"This deal brings the scale-up of e-SAF, produced using power-to-liquid technology, one step closer to reaching its full potential in the aviation industry," IAG added.
Luis Gallego, IAG's CEO said the airline has a roadmap to achieve net zero by 2050 including a target to fly with 10% Sustainable Aviation Fuel by 2030.
"The shortage of sustainable fuel globally continues to be a problem for our industry although innovative companies like Twelve are an important part of the solution," he said.
"This new deal will contribute towards our 2030 SAF target. We would like to see similar projects scale in Europe, and we look forward to working with governments across our key markets to build a SAF industry to deliver jobs, economic growth and a stable supply of SAF," the CEO added.
Meanwhile, IAG has offered concessions in an attempt to secure EU antitrust approval for its €400m bid to buy out Air Europa, a European Commission filing shows.
IAG, which also owns Spanish carrier Iberia, submitted its proposal on February 23, the filing showed without disclosing details.
The EU competition enforcer, which is due to decide on the deal by June 7, is expected to seek feedback from rivals and customers before deciding whether to clear the deal or demand more concessions.
