The Lufthansa Group and HCS Group have signed a Letter of Intent (LoI) to join forces in producing and supplying Sustainable Aviation Fuel (SAF). Starting from the beginning of 2026, the HCS Group aims to provide the Lufthansa Group with SAF produced through the innovative Alcohol-to-Jet (AtJ) technology. The SAF will be derived from biogenic residues sourced from agriculture and forestry and its production will take place at the HCS Group's facility in Speyer, managed by Haltermann Carless. The adoption of SAF is crucial for promoting more sustainable aviation and supporting the aviation industry's decarbonisation efforts.
By partnering with the HCS Group, the Lufthansa Group is actively supporting the concept of SAF ‘Made in Germany,' in compliance with Europe's Renewable Energy Directive RED II. The strategic location of the production site near the Lufthansa Group's Frankfurt hub provides logistical advantages. The HCS Group, known for providing sustainable hydrocarbon solutions, has ambitious plans to become the first large-scale producer of biogenic SAF in Germany, with an initial production target of 60,000 metric tonnes per year.
This LoI underscores the Lufthansa Group's commitment to driving the market ramp-up and adoption of Sustainable Aviation Fuels as a core component of its sustainability strategy. The Lufthansa Group currently stands as one of the world's top-five SAF customers and is investing up to US$250 million (£197 million) in procuring SAF over the coming years. Additionally, the Group is actively engaged in various global projects to enhance SAF availability and is continuously exploring further opportunities for long-term purchase agreements.
HCS Group is a leading international supplier of high-value hydrocarbon speciality solutions – a company formed from two of the oldest chemical producers in the world, Haltermann and Carless. Today, the combined business consists of three strong brands: Haltermann Carless, ETS Racing Fuels and Electrical Oil Services (EOS), with worldwide distribution channels in more than 90 countries. HCS Group has seven production sites: three in Germany, two in the UK, one in France and one in the U.S.
