March 2, 2024

Lufthansa Group and Shell sign seven-year SAF agreement

Shell and Lufthansa Group have signed a non-binding Memorandum of Understanding for exploring the supply of Sustainable Aviation Fuel (SAF) by Shell to the Lufthansa Group for seven years at airports across the globe.

Starting in 2024, the agreement will see Shell provide up to 594 million gallons (1.8 million metric tonnes) of SAF to the airline group.

Unlike most SAF supply arrangements where the fuel is produced from only one technology, the potential SAF to be supplied by Shell is to be produced by up to four different approved technology pathways and across a broad range of sustainable feedstocks.

Jan Toschka, President Shell Aviation, said: “It is encouraging to see large flagship carriers coming to us to discuss SAF supply deals, knowing there will be a lot of things to be defined and determined at a later stage, including established price markers. 

“SAF is the most significant way to decarbonise aviation over the decades to come.

“Our relationship goes beyond commercial arrangements – it is strategic and aligned regarding the view that SAF holds the key to achieving a sustainable aviation future.

“The potential SAF purchase agreement contemplated under the MoU, by its anticipated volume size, term period and geographic scope, is expected to be a milestone if concluded and shows the way forward for decarbonisation in the aviation industry.”

Katja Kleffmann, Head of Fuel Management Supply Lufthansa Group, added: “As an industry we have to work jointly towards making flying more sustainable and to achieve net-zero carbon emissions by 2050. Shell is very experienced with the global handling of Jet fuel and that is one key element for our trust for smooth operations of Sustainable Aviation Fuel, too.”

Shell is aiming to have at least 10% of its global aviation fuel sales as SAF by 2030.

The Lufthansa Group claims to already be the largest buyer of SAF in Europe.