British energy giant BP and Finnish energy company Neste signed an agreement aimed at raising the amount of sustainable aviation fuel (SAF) supplied to airport customers five-fold for 2020 and 2021.
As part of the agreement, Air BP, the aviation division of BP, will make the Neste-produced SAF available at selected airports in Europe, with deliveries to airports, including Stockholm (ARN) and Oslo (OSL) expected to begin in the coming weeks, BP and Neste said in a joint statement on Wednesday.
Neste is the world’s largest producer of renewable diesel and SAF.
Air BP and Neste have been collaborating on exploring and developing supply chain solutions for delivering SAF to airports and airlines since 2018. The two companies jointly developed a viable supply chain solution for sustainable aviation fuel to the Swedish market in April 2019.
The increased supply of SAF comes in response to rising demand from existing and new airline customers, as well as from Norway, where there is a mandate requiring 0.5% of all jet fuel sold to be SAF.
Produced from 100% renewable waste and residue raw materials, Neste said its SAF can reduce up to 80% of greenhouse gas emissions compared to conventional jet fuel.
“BP’s ambition is to be a net zero company by 2050 or sooner and to help the world get to net zero,” Martin Thomsen, Air BP’s chief executive officer, was quoted as saying in the statement.
“The use of sustainable aviation fuel will play a significant role in the industry’s ongoing efforts in making air transportation fit for the climate and environmental challenges it is facing,” said Thorsten Lange, executive vice president at Neste.
Neste’s sustainable aviation fuel annual capacity is currently 100,000 tons. However, the company plans to produce some 1.5 million tons of SAF annually by 2023 with the upcoming expansion of its Singapore refinery and possible additional investment in the Rotterdam refinery.
Last week, Neste announced that it is providing three major US airlines; Alaska Airlines, American Airlines and JetBlue Airways with renewable aviation fuel for flights from San Francisco International Airport (SFO).
By Sibel Morrow