IAG Locks In Major SAF Deal with Infinium

  • IAG signs a 10-year deal with U.S. producer Infinium to source sustainable aviation fuel (SAF) from its Texas facility.
  • The SAF, produced from CO2, water, and renewable energy, will help IAG meet EU and UK mandates for low-carbon aviation fuel.
  • This marks IAG’s second major e-SAF deal, following a February 2024 agreement with U.S. startup Twelve. The company is working toward a 10% SAF target by 2030.

International Airlines Group (IAG) has signed a 10-year agreement with Infinium, a U.S.-based sustainable aviation fuel (SAF) producer. The deal, announced at Aviation Carbon 2024 in London Heathrow, will provide IAG with a significant supply of e-SAF. While IAG has not disclosed the exact volume, Jonathon Counsell, IAG’s Group Head of Sustainability, called it “significant.”

Infinium will produce the SAF at its Project Roadrunner facility in West Texas. This plant, located on a brownfield site, will become the world’s largest e-SAF production site once fully operational. Infinium uses power-to-liquid technology, converting waste CO2, water, and renewable energy into fuel. This process aligns with IAG’s sustainability goals by producing synthetic fuel.

IAG operates airlines such as British Airways, Iberia, Vueling, Aer Lingus, and LEVEL. The SAF from Infinium will ship from Texas to Europe for use at EU and UK airports. IAG must meet EU and UK mandates, which require a specific percentage of SAF in flights departing from these regions.

This marks IAG’s second major deal with a U.S.-based e-SAF developer. In February 2024, IAG signed its first deal with Twelve, another startup focused on sustainable fuels. IAG is accelerating efforts to meet its target of using 10% SAF by 2030. Counsell confirmed that IAG will continue seeking additional procurement deals to secure more SAF.

The West Texas facility benefits from the state’s abundant renewable energy resources. Infinium uses renewable electricity to split water into hydrogen and oxygen. The company then combines the hydrogen with CO2 captured from industrial emissions to produce low-carbon fuel, which can directly replace conventional jet fuel.

IAG’s commitment to SAF is vital to its larger strategy to decarbonise operations. The group has outlined plans to achieve net-zero carbon emissions by 2050. SAF plays a crucial role in this effort by reducing lifecycle emissions by up to 80% compared to traditional jet fuel. However, scaling up SAF production presents challenges, including high costs and limited supply.

Counsell emphasised that deals like the one with Infinium will help IAG meet its 2030 SAF goal. While IAG has made significant progress, the company will continue pursuing partnerships to increase SAF availability. IAG is also exploring opportunities in new markets to diversify its SAF supply chain.

Infinium’s Project Roadrunner facility will play a critical role in the global SAF market. Once fully operational, the facility will produce enough fuel to help IAG and other airlines meet sustainability targets. With increasing pressure on airlines to reduce carbon emissions, deals like this will likely become more common in the coming years.

IAG’s ongoing investment in SAF reflects the aviation industry’s broader shift toward greener energy sources. As governments impose stricter emission regulations, airlines pursue sustainable solutions to meet these demands.

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