Lufthansa Group, the parent company of German flag carrier Lufthansa (LHAB) (LHA), has stepped into a partnership with British oil and gas company Shell International Petroleum over the supply of Sustainable Aviation Fuel (SAF).
Following terms of the Memorandum of Understanding (MoU), which was signed on August 1, 2022, Shell will explore the supply of SAF to the Lufthansa Group for seven years at airports across the globe.
The two companies are also working towards agreeing a SAF supply contract, which could see Shell providing Lufthansa Group’s subsidiaries with up to 1.8 million metric tons of SAF between 2024 and 2030. If it goes ahead, the deal will become the parties’ largest SAF commitment to date.
“The Lufthansa Group is already the largest SAF customer in Europe and aims to remain one of the world’s leading airline groups in the use of sustainable kerosene. The MoU builds on Shell’s ambition to have at least ten percent of its global aviation fuel sales as SAF by 2030,” Lufthansa (LHAB) (LHA) said in a statement.
Lufthansa Group aims to reduce the current levels of carbon emissions by 50% by 2030 and gradually reach carbon neutrality by 2050.
“[Lufthansa Group] relies on accelerated fleet modernization, the continuous optimization of flight operations, the use of sustainable aviation fuels, and innovative offers for its customers to make a flight CO2-neutral,” Lufthansa (LHAB) (LHA) added.