Summary
- IAG Group is pushing for SAF suppliers to step up to meet its ambitious emission goals by 2030 and 2050.
- The group’s clear roadmap includes using emission-free aircraft with SAF to achieve net zero by 2050.
- The recent deal with Twelve for e-SAF shows private sector investment potential, but clear government policy support is crucial.
Last week, the International Air Transport Association released an update on how airlines are progressing on their pathway to net zero emissions by 2050. The update reported on new developments in January and February, and the key takeaway was that more organizations are developing sustainable aviation fuel (SAF) production at scale, which is an encouraging shift as more airlines sign up for long-term SAF deals.
IAG needs some big SAF suppliers to step up
Prominent airlines, such as the IAG Group, have a pressing need to find viable sources of SAF if they are to meet their 2050 and 2030 interim emission goals, and to date, finding first-movers making investments in the expensive infrastructure has not been easy. The existing aviation fuel suppliers will not be the SAF leaders, but the IATA update noted several progressive technology companies that have secured investments and are forging their own pathways, often in partnerships with airlines.
Photo: Airbus
The IAG Group includes British Airways, Iberia, Aer Lingus, Vueling and LEVEL, so it needs solutions for short, medium and long-haul operations, which is why the group is already one of the largest users of SAF globally. Last year it used more than 53,000 tonnes of SAF and purchased approximately 12% of the global SAF produced in 2023 and is on track to be using SAF for 70% of its total fuel use in 2050.
IAG Head of Sustainability Jonathon Counsell said the group has a clear roadmap to get to net zero emissions by 2050, with a focus on new technology emission-free aircraft operating with SAF and carbon removals. In 2021, IAG was the first European airline group to pledge to use SAF for 10% of all fuel needs by 2030, which means it needs to secure around one million tonnes annually to meet the target.
Photo: Jake Hardiman | Simple Flying
Counsell added that this depends on appropriate government policy support and will save as much greenhouse gas as taking one million cars off the road per year. The IAG Group will deliver a 100-fold increase in its SAF volumes between 2022 and 2030, and at the end of 2023, its total investment in SAF stood at $1 billion, of which 86% is future commitments.
First-mover advantage at play
IAG signed its largest SAF deal with Twelve to purchase 785,000 tonnes of e-SAF made from CO2, water and renewable energy to support the five European airlines. It is the first European airline group to announce an e-SAF deal that will increase its 2030 committed supply from 25% to 33%. Counsell said:
“The supply agreement with Twelve shows us that the private sector is ready to invest but can only do so with clear policy support from governments around the world for what is the most challenging sector to decarbonise. IAG would like to see similar projects scale in Europe and look forward to working with governments across key markets to build a SAF industry to deliver jobs, economic growth and a stable supply of SAF.”
The deal with Twelve is important for the broader e-SAF industry and brings the scale-up of power-to-liquid technology another step closer to reaching its full potential for aviation. The major benefits of e-SAF are that it does not face feedstock limitations, has a high degree of emissions reduction versus conventional jet fuel and has a relatively low land and water-use footprint.
Counsell also believes that government mandates only serve to drive demand when what is urgently needed are incentives to drive SAF production at the scale and pace aviation needs to meet its sustainability targets. He also called on the UK government to consult with industry on a revenue certainty scheme, which he wants to see implemented as quickly as possible.
