International Airlines Group (IAG) announced its biggest agreement to date for sustainable aviation fuel (SAF). They will be partnering with e-SAF producer Twelve, which uses power-to-liquid (PTL) technology.

Under the 14-year contract, Twelve will supply IAG with 7,85,000 tonnes of advanced e-SAF, fueling their five European airlines: British Airways, Iberia, Aer Lingus, Vueling, and LEVEL.

This next-generation fuel dramatically cuts lifecycle greenhouse gas emissions by up to 90% compared to conventional jet fuel. IAG is the first European airline group to announce an e-SAF deal, allowing them to further increase their SAF usage, which accounted for roughly 12% of the global supply in 2023.

This agreement brings e-SAF, produced using PTL technology, closer to its full potential within the aviation industry. e-SAF boasts no feedstock limitations, significantly reduces emissions compared to traditional jet fuel, and has a relatively low land and water footprint.

Twelve: Pioneering Sustainable Fuel Production

Twelve, based in California, is a leader in carbon transformation and PTL technology. They have developed and patented a unique process that creates high-quality synthetic fuels from renewable electricity and captured carbon dioxide (CO2).

Their demonstration plant in Washington will begin supplying IAG with e-SAF as early as 2025. The two companies first collaborated in 2020 when Twelve joined IAG's Hangar 51 start-up accelerator programme to commercialise their technology.

IAG on Track for Sustainable Future

This partnership marks a huge step forward for IAG's journey towards their 2030 target of flying with 10% SAF – the first European airline group to set this ambitious goal. IAG has already secured one-third of the SAF needed to reach this target.

Recognition and Future Plans

This deal earned IAG the "SAF Offtake Deal of the Year" award at the inaugural SAF Investor Conference and Awards.

As part of their sustainability roadmap, IAG continues to invest in new fuel-efficient aircraft, support SAF projects, and explore carbon removal options to further minimise their environmental impact. Their Project Speedbird, an ethanol-to-jet fuel initiative, recently received funding from the UK government.

Luis Gallego, IAG’s CEO, said: “We have 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.

“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."

Nicholas Flanders, Twelve’s Co-Founder and CEO, said: "We are proud to partner with IAG on this historic deal to advance sustainable aviation with our e-SAF that has up to 90% lower emissions than conventional jet fuel. Our power-to-liquid E-Jet® fuel offers industry-leading emissions reduction potential with the added benefits of an abundant feedstock supply and significantly smaller land and water footprints compared to alternative SAF pathways."

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Source: IAG