Shell, Neste Ink SAF Supply Agreement

 - September 24, 2020, 10:17 AM
In the first supply agreement between the two European fuel companies, Shell's aviation refueling network will be providing sustainable aviation fuel provided by Neste starting on Oct. 1. (Pre-Covid Impact Photo: Shell Aviation)

Global fuel provider Shell and Neste, the world’s largest sustainable fuel producer, have signed a supply agreement that will provide Shell with its first European-produced sustainable aviation fuel (SAF). The company has existing SAF supply partnerships with SkyNRG and World Energy and this latest deal, which starts in October, will increase the availability of the renewable fuel, primarily in Europe, through Shell’s extensive refueling network. According to Shell, the deal will serve all segments of the industry including commercial airlines, cargo, and general aviation.

“To tackle climate change and reach net-zero emissions, the aviation industry must act fast,” said Shell global aviation president Anna Mascolo. “Shell Aviation aims to reduce the carbon intensity of the fuels we sell, which includes selling more lower-carbon fuels like sustainable aviation fuel, over time.”

Neste’s current SAF production capacity is 34 million gallons a year, and the Finnish company said that volume could grow to more than a half billion gallons by 2023.

“SAF offers the only viable alternative to fossil liquid fuels for powering commercial aircraft with an immediate potential to reduce aviation’s greenhouse gas emissions,” said Thorsten Lange, Neste’s executive v-p for renewable aviation. “We are fully committed to supporting the aviation industry, its customers, and corporates with their emission-reduction targets.”