Neste to supply the Air France-KLM Group with more than 1 million tons of Sustainable Aviation Fuel

Rhea-AI Summary

Neste Corporation has announced a major supply agreement with the Air France-KLM Group, providing over 1 million tons (approx. 1.26 billion liters) of Neste MY Sustainable Aviation Fuel™ over 8 years starting in 2023. This agreement supports the AF-KLM Group's goal to reduce CO₂ emissions per passenger/km by 30% by 2030. Neste aims to cut annual emissions by 20 million tons of CO₂e by 2030, helping the aviation sector progress towards net-zero carbon emissions by 2050.

Positive

• Largest aviation industry SAF agreement, spanning 8 years.
• Supports Air France-KLM's sustainability initiatives and 30% CO2 reduction by 2030.
• Neste expects to reach 1.5 million tons annual SAF production capacity by end of next year.

Negative

• None.

Neste Corporation, Press Release, 25 October 2022 at 4.30 p.m. (EET)     

ESPOO, Finland, Oct. 25, 2022 /PRNewswire/ --    

• Neste to supply the Air France-KLM Group with more than 1,000,000 tons (approximately 1.26 billion liters) of Neste MY Sustainable Aviation Fuel™ over a period of 8 years starting in 2023.           

• This SAF agreement is one of the largest of its kind in the aviation industry and supports the Air France-KLM Group's commitment to a more sustainable aviation sector.           

• Using Neste MY Sustainable Aviation Fuel™ reduces greenhouse gas emissions by up to 80%* over the fuel's life cycle compared to using fossil jet fuel. 

The Air France-KLM Group (AF-KLM) and Neste have announced the expansion of their existing cooperation with a new strategic partnership for the supply of Neste MY Sustainable Aviation Fuel™ to the Group. This new SAF agreement for a period of 8 years is one of the largest of its kind in the aviation industry to date. 

Fully committed to reducing its environmental impact, the Air France-KLM Group aims to reduce its CO₂ emissions per passenger/km by 30% by 2030 compared to 2019 - a target which has been submitted to the Science Based Targets initiative (SBTi). Its decarbonisation trajectory includes the incorporation of 10% SAF by 2030, alongside fleet renewal and eco-piloting. The contract with Neste, part of a first set of long-term supply agreements, constitutes a further step for the Group to achieve its 10% SAF incorporation targets. 

"Neste is fully committed to helping the aviation industry achieve its 2050 net-zero carbon emissions target, and sustainable aviation fuel will play a central role in that effort. Today's announcement, which marks a significant next step forward in our cooperation with Air France-KLM Group, underscores how we continue to support companies to reduce their greenhouse gas emissions. Neste aims to help customers cut emissions by at least 20 million tons of CO₂e annually by 2030 with our renewable and circular solutions," says Matti Lehmus, President and CEO of Neste.

"This landmark partnership with Neste is an important and concrete step towards the decarbonisation of our operations. This contract embodies our long-term commitment to the development of SAF's production capabilities around the world, to the benefit of the industry as a whole," said Fatima Gloria de Soussa, Director Sustainability, Air France-KLM Group.

The agreement builds on SAF supply to the Air France-KLM Group which started in 2019 but the two companies have been working together for several years with KLM being one of the first airlines using Neste MY Sustainable Aviation Fuel.

"As the world's leading producer of SAF, we are helping the aviation industry to work towards a more sustainable future, already today. This long-term collaboration with Air France-KLM shows how we are working together in a number of areas. By the end of next year, Neste will have an annual SAF production capacity of 1.5 million tons, ready to support the Air France-KLM Group and other airlines in Europe and across the globe," says Thorsten Lange, Executive Vice President, Renewable Aviation at Neste.

Neste MY Sustainable Aviation Fuel is an available solution today. As a drop-in fuel it can be used with existing aircraft engines and airport fuel infrastructure, requiring no new investment. Neste MY SAF is produced from 100% sustainably-sourced, renewable waste and residue raw materials, such as used cooking oil and animal fat waste. 

*) When used in neat form and calculated with established life cycle assessment (LCA) methodologies, such as CORSIA methodology

Neste Corporation

Susanna Sieppi
Vice President, Communications

Further information:

Neste: Please contact Neste's media service, tel. +358 800 94025 / media@neste.com (weekdays from 8.30 a.m. to 4.00 p.m. EET).

Air France-KLM: Air France-KLM Press Office, +33 1 41 56 56 00 - mail.mediarelations@airfranceklm.com - @AirFranceKLM - https://airfranceklm.com/

CONTACT:

The following files are available for download:

https://news.cision.com/neste/i/neste-saf-af-klm-press-release,c3105395

Neste SAF AF-KLM press release

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SOURCE Neste