International Airlines Group (IAG) has entered into an agreement with sustainable fuels company Velocys to buy about 220,000 tons of sustainable aviation fuel (SAF) over the next ten years, reports Aviacionline.com.
The SAF purchased by IAG will be used initially by British Airways, Iberia, and Aer Lingus. This accounts for one-third of Velocys’ planned production under the Bayou Fuels project in the United States, which is expected to begin distribution in 2026.
Velocys produces sustainable fuels from household, commercial, and forestry waste for both airline and heavy transport use. The company says it can make fuels with net negative greenhouse gas emissions by using carbon capture and storage technology. This method separates carbon from CO2 and stores it underground, preventing it from entering the atmosphere.
IAG stated that it is the first airline group in Europe to commit to operating 10% of its flights with sustainable aviation fuel by 2030, which could reduce carbon dioxide emissions by two million tons each year.
Luis Gallego, CEO of IAG, said, “We are investing $400 million in sustainable aviation fuel development over the next 20 years. This agreement is another step toward our goal of using 10% sustainable fuel on our flights by 2030.”
Recently, the group operated its first commercial flights with Iberia and Vueling airlines using SAF made in Spain by Repsol.
Henrik Wareborn, CEO of Velocys, said, “This agreement strengthens our long-term collaboration with IAG. Our technology allows us to produce sustainable aviation fuels from waste while capturing carbon. We are excited to support IAG in achieving net-zero carbon emissions by 2050.”
In its statement, IAG called on the UK government and the European Union to adopt policies that support biofuel production, similar to the backing Velocys has received in the United States. “Sustainable aviation fuel is vital for reducing emissions in the airline industry. Government support is necessary to attract investment and build the facilities needed to ensure a steady fuel supply,” the company said.
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