Air France-KLM invests in the SAF manufacturing plant in the United States

While the so-called sustainable aviation fuel (SAF) sector is developing faster in the United States than on the old continent, Air France-KLM announced on Friday, November 10, that it has invested in the American supplier DG Fuels. In addition to this investment, Air France-KLM said it has acquired an option to purchase up to 75,000 tonnes of SAF per year from DG Fuels, with deliveries scheduled from 2029, an addendum to the purchase agreement. Announced a long-term plan by both companies in 2022 to supply 600,000 tons of SAF between 2027 and 2036.

“Supporting the development of advanced waste-to-jet fuel technology is a crucial step for the growth of the SAF industry,” Constance Thio, executive vice president of human resources and sustainability for the Franco-Dutch group, said in a press release. It is the first time the group has invested financially in a SAF manufacturer, she added.

First factory in Louisiana

The $4.7 million (€4.40 million) investment aims to support the completion of development work necessary to reach a final investment decision on DG Fuels’ first Louisiana-based SAF plant, according to the airline. Air France-KLM believes that this investment and the option to buy represent a new step for the group to achieve the goal of incorporating at least 10% of SAF by 2030.

Air France-KLM notes that in 2022 it was the world’s leading user of SAF “with a volume representing 17% of global production”, compared to 3% for kerosene. To secure its supply, the company signed a memorandum of understanding with TotalEnergies in December 2022 to supply it with 800,000 tonnes of SAF over ten years from 2023. A few weeks earlier, the airline announced that it had signed a contract with Finland’s Neste for the supply of 1 million tons of SAF between 2023 and 2030.

With Reuters (Writing by Diana Mandía, editing by Kate Entringer)

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