Air France-KLM invests in SAF producer DG Fuel

Air France-KLM is investing $4.7 million in producer DG Fuel. The deal enables DG Fuel to build a new plant in Louisiana (US) and offers the airline group the option to purchase up to 25 million gallons of SAF per year from DG starting in 2029.

Air France-KLM is the second large investment partner teaming up with DG Fuel, after the producer closed a similar deal with Airbus. Furthermore, Air France-KLM partner Delta Air Lines secured a contract with DG Fuel that secures the supply of 385 million gallons of SAF from 2027. According to Bloomberg, Air France-KLM is the largest user of SAF in terms of total volume among passenger airlines and comes in second in SAF as the share of all jet fuel consumed, at 0.59%.

SAF use to rise

SimpleFlying reports that the current level of SAF adoption by Air France-KLM is partly driven by the 2022 French legislation, which requires all airlines refueling in France to use at least 1% SAF in their fuel mix. This mandate will see the percentage of SAF use rise to 2% in 2025, 5% in 2030, and eventually 50% in 2050.

SimpleFlying: “Air France-KLM has positioned itself as a leader in sustainable aviation. Its target to reduce CO2 emissions per passenger/km by 30 percent in 2030 and to achieve net zero carbon in 2025 is ambitious, but it is slowly but surely working towards the goal. Its decarbonization plan to reduce direct emissions involves two major areas: sustainable fuel and fleet modernization.”