Aer Lingus and British Airways owner IAG has announced a new Sustainable Aviation Fuel (SAF) purchase agreement with e-SAF producer Infinium.
Through the deal, IAG plans to supply the UK market with power-to-liquid e-SAF from late 2026. Produced from water, waste CO2 and renewable energy, e-SAF is expected to reduce lifecycle greenhouse gas emissions by approximately 90% compared to today’s conventional jet fuel.
Under the terms of the 10-year agreement, Infinium will supply IAG with e-SAF to support any of its five airlines, Aer Lingus, British Airways, Iberia, LEVEL and Vueling. Last year, IAG airlines used approximately 12% of the world’s supply of SAF.
This deal supports the scale-up of e-SAF, which is manufactured through a process that converts water, waste CO2 and renewable power into fuel. This new class of fuel is not encumbered by feedstock limitations, has a higher degree of emissions reduction versus conventional jet fuel and has a relatively low land and water-use footprint. It is also a “drop-in” replacement for aviation fuel that requires no changes to existing aircraft engine designs.
Jonathon Counsell, IAG’s Group Sustainability Officer, said: “So far, we’re on track to deliver our 10% 2030 SAF goal and agreements with innovators like Infinium, are key to reaching this target. Aviation as an industry is working hard to decarbonize and policy should focus on solutions such as SAF, rather than only increasing costs which risk affecting the competitiveness of the European aviation industry. What the industry needs is additional policy support to attract funds to construct SAF plants and reduce aviation’s reliance on fossil fuels.”
Robert Schuetzle, Infinium’s CEO, said: “We are proud that IAG has chosen Infinium to help towards its sustainability goals. Long-term, bankable commitments like these are what drive the ability to ramp up production of e-SAF, which is a critical milestone for the airline industry and for eFuels as an alternative to both fossil-based fuels and prior generations of SAF.”
As part of its sustainability roadmap, IAG is also investing in new aircraft and implementing fuel efficiency initiatives, purchasing and investing in SAF and advancing carbon removals to reduce emissions from its operations.
