London: Leading European airline easyJet has signed a Memorandum of Understanding (MoU) with ATOBA Energy (ATOBA), a company focused on aggregating Sustainable Aviation Fuel (SAF), and global fuel logistics expert World Fuel Services (World Fuel). The partnership aims to develop a long-term supply of SAF for easyJet’s operations across Europe and the UK.
This agreement marks a significant step in easyJet’s decarbonisation strategy and is expected to stimulate growth in the SAF value chain. ATOBA’s role in aggregating SAF will help manage pricing and supply volatility risks for airlines, while World Fuel will leverage its extensive infrastructure for jet fuel logistics, blending, storage, and distribution.
“By addressing the long-term offtake challenges that have hindered investment in SAF projects, ATOBA’s approach paves the way for accelerated industry expansion, greater investment confidence, and credible pricing and supply security for easyJet,” commented Raminder Shergill, Director of Tax & Fuel Strategy at easyJet.
The collaboration is intended to accelerate the adoption of advanced SAF technologies, which is crucial for the aviation industry to meet environmental targets and regulatory mandates. The current SAF market faces hurdles in scaling up production to meet demand. While SAF producers require long-term, stable pricing contracts to secure investments, airlines like easyJet seek competitive SAF market prices in a developing industry with various competing production methods. ATOBA’s unique business model offers a potential solution to this conflict.
ATOBA facilitates the development of SAF production by managing a diverse portfolio of SAF offtake agreements across different producers and production technologies, including Alcohol to Jet, Gas-Fischer Tropsch, and Power to Liquids. This approach helps mitigate technological and pricing risks associated with different SAF production pathways. ATOBA aims to facilitate long-term offtake agreements between airlines, jet-fuel distributors, SAF producers, and financial institutions, which are vital for scaling the industry.
World Fuel’s role in the partnership includes managing the logistics, blending, storage, and ensuring compliance with EU and UK regulations for SAF. Their involvement aims to ensure the seamless integration of SAF into easyJet’s existing fuel supply chain, highlighting the shared commitment of the three companies to developing an efficient and compliant end-to-end sustainable aviation fuel supply chain.
Arnaud Namer, co-founder and CEO of ATOBA Energy, expressed pride in the partnership. “We are proud to partner with easyJet and World Fuel, two aviation industry leaders taking bold and proactive steps to accelerate aviation’s transition to Sustainable Aviation Fuels. With their expertise in highly efficient operational cost management, they are setting a strong precedent for the industry. We are excited to support their transition through our SAF aggregation services, providing airlines with long-term competitive advantages as they shift toward more sustainable fuels.”
Duncan Storey, Senior Vice President (EMEA) at World Fuel, added, “Our collaboration with easyJet and ATOBA, underscores our commitment to expanding global access to sustainable aviation fuel. By managing logistics and regulatory compliance, we work to ensure the seamless integration of sustainable aviation fuel in the market, empower producers and connect sustainability-focused customers with innovative supply.”
As the aviation industry strives for a more sustainable future, ATOBA, easyJet, and World Fuel are positioning themselves as key players at the forefront of this evolution.
