IAG has signed an MoU agreement with Velocys, the sustainable fuels technology company, to acquire 220,000 tonnes of sustainable aviation fuel (SAF) over ten years. This equates to one third of the planned output of the company´s new Bayou Fuels project in the US when it begins delivery in 2026.
The SAF will be used by IAG airlines including British Airways, Aer Lingus and Iberia. The technology used in this project will capture CO2 from the manufacturing process to permanently remove it from the atmosphere.
The Group will purchase one million tonnes of sustainable jet fuel per year enabling it to cut its annual emissions by two million tonnes by 2030. This equates to removing one million cars from Europe’s roads each year.
Luis Gallego, IAG´s chief executive, said: “IAG is investing US$400 million (£294 million) in the development of sustainable aviation fuel in the next 20 years. This new agreement is another important step towards achieving our goal of ten per cent sustainable aviation fuel use by 2030.
Henrik Wareborn, Velocys’ Chief Executive, said: “This is another step in our long-standing partnership with IAG. Velocys offers an end-to-end technology solution to its clients enabling the production of SAF from waste feedstocks and the integration of carbon capture technology. It´s great to continue working with IAG on its journey to net zero by 2050.”
Velocys, based the UK, is an international sustainable fuels technology company, providing clients with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials.
