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Shell and Lufthansa Group sign non-binding Memorandum of Understanding for sustainable aviation fuel (SAF) supply

  • The MOU contemplates the parties exploring the supply of SAF that could reach up to 594 million gallons (1.8 million metric tonnes) in total in the years 2024 until 2030.
  • The SAF would be produced by Shell by up to four different approved technology pathways and a broad range of sustainable feedstocks.
  • SAF is a decisive technological step towards decarbonisation in the aviation industry.

Representatives of Shell International Petroleum Co Ltd. and Deutsche Lufthansa AG (Lufthansa Group) have signed a non-binding Memorandum of Understanding (MoU) for exploring the supply of Sustainable Aviation Fuel (SAF) by Shell to the Lufthansa Group for seven years at airports across the globe, starting in 2024.

The parties contemplate negotiating towards reaching a definitive purchase agreement with the total volume supplied reaching up to 594 million gallons (1.8 million metric tonnes). If a definitive agreement is reached it would be one of the most significant commercial collaborations for SAF in the aviation sector and Shell鈥檚 largest SAF commitment to date.

Jan Toschka, President, Shell Aviation, commented: 鈥淚 am very happy to see the relationship between Shell and the Lufthansa Group moving towards reaching our respective sustainability goals. It is encouraging to see large flagship carriers coming to us to discuss SAF supply deals, knowing there will be a lot of things to be defined and determined at a later stage, including established price markers. SAF is the most significant way to decarbonise aviation over the decades to come. Our relationship goes beyond commercial arrangements 鈥 it is strategic and aligned regarding the view that SAF holds the key to achieving a sustainable aviation future. The potential SAF purchase agreement contemplated under the MoU, by its anticipated volume size, term period and geographic scope, is expected to be a milestone if concluded and shows the way forward for decarbonisation in the aviation industry.鈥

Katja Kleffmann, Head of Fuel Management Supply Lufthansa Group, commented: 鈥淲e are happy to enhance our long standing global business with Shell by signing this MoU. As an industry we have to work jointly towards making flying more sustainable and to achieve net-zero carbon emissions by 2050. Shell is very experienced with the global handling of Jet fuel and that is one key element for our trust for smooth operations of Sustainable Aviation Fuel, too.鈥

Unlike most SAF supply arrangements where the fuel is produced from only one technology, the potential SAF to be supplied by Shell is to be produced by up to four different approved technology pathways and a broad range of sustainable feedstocks.

The MoU contributes to Shell鈥檚 ambition of having at least 10% of its global aviation fuel sales as SAF by 2030 and on the Lufthansa Group鈥檚 ambition to drive the availability, the market ramp-up and the use of SAF as a core element of its sustainability strategy. The Lufthansa Group is already the largest buyer of SAF in Europe and one of the airlines enabling their customers to report their emission reductions by an audited certificate.

Katja Kleffmann, Head of Fuel Management Supply, Lufthansa Group, and Jan Toschka, President, Shell Aviation

Notes to editors

  • Sustainable Aviation Fuel (SAF) can be made from biogenic residual material such as used cooking oil. The industrial scaling for technologies such as HEFA has already started; however, research and development is underway to find ways to produce industrial quantities of SAF from non-biogenic material, using hydrogen obtained from low-emission sources and carbon dioxide captured from other industrial processes or the air.
  • As a drop-in solution compatible with existing aircraft fleet and airport infrastructure, SAF can be blended with conventional jet fuel at a ratio of up to 50% with the result of creating an aviation fuel that is significantly lower in lifecycle carbon emissions. In its neat form, SAF from biogenic residues can reduce lifecycle emissions by up to 80% compared to conventional fuel, making it a vital solution for decarbonising aviation.

About Shell:

Shell plc is incorporated in England and Wales鈥 has its headquarters in London and is listed on the London鈥 Amsterdam鈥 and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing鈥 marketing and shipping of oil products and chemicals and renewable energy projects. For further information鈥 visit www.shell.com.

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