MIAMI. -IAG has agreed to buy 220,000 tonnes of sustainable aviation fuel (SAF) from Velocys, a sustainable fuels technology firm, over a ten-year period. This is one-third of the capacity of the company’s new Bayou Fuels project in the United States, which is set to start production in 2026.

By 2030, the Group will have purchased one million tonnes of SAF, reducing annual emissions by two million tonnes. This translates to one million cars being removed from Europe’s roads each year, according to IAG.

IAG carriers such as British Airways (BA), Aer Lingus (EI), and Iberia (IB) will utilize the purchased SAF. The project’s technology will capture CO2 from the manufacturing process and remove it from the atmosphere permanently. IAG was the first European airline group to commit to using sustainable aviation fuel on 10% of its flights by 2030.

Aer Lingus EI-DEH Airbus A320-200. Photo: Tony Bordelais/Airways

Comments from IAG, Velocys

Luis Gallego, IAG´s chief executive, said, “IAG is investing US$400m in the development of sustainable aviation fuel in the next 20 years. This new agreement is another important step towards achieving our goal of 10 percent sustainable aviation fuel use by 2030.

“Sustainable aviation fuel is a critical element for the decarbonisation of the aviation industry,” said the IAG CEO. “Clear policy support is needed to attract investment to construct the necessary plants to deliver enough supply for the airline industry.”

Gallego added, “This project has benefitted from strong policy support from the US, creating highly-valued green jobs and economic growth. We would encourage the UK and the EU to follow suit in supporting the development and deployment of green technologies including carbon capture.”

Henrik Wareborn, Velocys’ chief executive, said, “This is another step in our long-standing partnership with IAG. Velocys offers an end-to-end technology solution to its clients enabling the production of SAF from waste feedstocks and the integration of carbon capture technology. It´s great to continue working with IAG on its journey to net-zero by 2050.”

Featured image: British Airways G-TTNA Airbus A320neo (BA Better World Livery}. Photo: Erwin Eslami/Airways