IAG reaches one-third of SAF target with deal with Twelve

International Airlines Group (IAG) has announced its largest sustainable aviation fuel (SAF) purchase agreement to date, with e-SAF (power-to-liquid) producer, Twelve, which will supply advanced e-SAF made from made from CO₂, water and renewable energy

Under the terms of the fourteen-year contract, Twelve will supply IAG with 785 000 t^* of e-SAF to support its five European airlines (British Airways, Iberia, Aer Lingus, Vueling and LEVEL). The next generation fuel will reduce lifecycle greenhouse gas emissions by up to 90% vs conventional jet fuel. IAG is the first European airline group to announce an e-SAF deal, and the agreement will enable IAG to continue increasing its SAF use, which was approximately 12% of the world’s supply in 2023.^**

This deal brings the scale-up of e-SAF, produced using power-to-liquid technology, one step closer to reaching its full potential in the aviation industry. e-SAF does not face feedstock limitations, has a high degree of emissions reduction vs conventional jet fuel and has a relatively low land and water-use footprint.

Twelve, based in Berkeley, California, US, is a leader in carbon transformation and power-to-liquid technology. The company has developed and patented a process that can produce high-quality synthetic fuels from renewable electricity and CO₂. The company is constructing a demonstration plant in Moses Lake, Washington, US, which will supply the first SAF deliveries to IAG starting as early as 2025. The two companies first began partnering in 2020, when Twelve joined IAG’s Hangar 51 start-up accelerator programme to commercialise Twelve’s technology.

The new Twelve partnership is a major step forward for IAG on its journey towards 2030, when it has committed as a Group to fly with 10% SAF—the first European airline group to set this target. IAG has now secured one-third of the SAF needed to reach its 2030 target.

Luis Gallego, IAG’s CEO said: “We have a roadmap to achieve net zero by 2050 including a target to fly with 10% SAF 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.”

^*The agreement is for 260 million gal., which is approximately 785 000 t, or 984 million litres.

^**Based on IATA’s latest figures for SAF production in 2023.