International Airlines Group $(IAG)$ said Monday that it has signed a contract with Infinium for the supply of power-to-liquid synthetic sustainable aviation fuel (e-SAF) from 2026.

The agreement has a duration of ten years and the e-SAF will be produced at Infinium's Project Roadrunner plant in West Texas. This is the company's second commercial-scale facility and will be the largest in the world when production begins.

Produced from water, carbon dioxide and renewable electricity, e-SAF can reduce lifecycle greenhouse gas emissions by around 90% compared to traditional jet fuel.

Jonathan Counsell, IAG's Chief Sustainability Officer, said that the Anglo-Spanish group is on track to deliver its 10% SAF goal by 2030.

"What the industry needs is additional policy support to attract funds to construct SAF plants and reduce aviation's reliance on fossil fuels," he said.

Starting next year, IAG airlines such as British Airways and Iberia will be impacted by the EU and U.K. SAF blending mandates, which start at 2% of total fuel supplies. Moreover, e-SAF submandates kick in 2028 in the UK, and in 2030 in the EU.

IAG airlines consumed 53,000 metric tons of SAF last year. The group has supply contracts in place with biofuel suppliers such as BP, Neste, Philips 66, Repsol and Cepsa.

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--Reporting by Jaime Llinares Taboada, jllinares@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com

(END) Dow Jones Newswires

November 25, 2024 10:44 ET (15:44 GMT)

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