In a significant move for sustainable aviation, International Airlines Group (IAG)—parent company of Aer Lingus, British Airways, Iberia, Vueling, and LEVEL—has struck a deal with Repsol, a Madrid-based energy company. This agreement, involving the acquisition of over 28,000 tonnes of sustainable aviation fuel (SAF) in the next six months, represents the largest-ever purchase of SAF in Spain. By committing to this substantial purchase, IAG aims to bolster its long-term decarbonization strategy and meet stringent EU regulatory requirements.
This new agreement is a continuation of IAG’s ongoing efforts to integrate SAF into its operations, aligning with its previous partnerships and investments in the field. In recent years, IAG has shown a consistent approach to expanding its SAF portfolio, having previously entered into various agreements with other energy providers. This latest deal underscores the group’s commitment to achieving its ambitious sustainability targets.
Largest SAF Purchase in Spain
This historic purchase will see SAF used for flights departing from Spanish airports operated by Aer Lingus, British Airways, Iberia, Iberia Express, and Vueling. The initiative is part of IAG’s broader plan to adhere to the EU’s ReFuelEU law, which mandates a 2% SAF blend in aviation fuel by 2025. The airline group has set even more ambitious goals for itself, planning to achieve a 10% SAF usage rate and 1 million tonnes of annual SAF consumption by 2030, ultimately reaching net zero emissions by 2050.
Luis Gallego, CEO of IAG, emphasized the importance of sustainability to IAG’s strategy and transformation. He also called for continued governmental support to develop a competitive and affordable SAF industry.
“Sustainability is a priority for IAG and is one of the pillars on which we base our strategy and transformation. We are working intensely to secure our future SAF needs and comply with our commitments, which are more ambitious than what is established by EU legislation. However, it is important that governments continue to support the development of a SAF industry that increases its availability and reduces its price.”
Repsol’s Commitment to Renewable Fuels
Repsol has recently commenced production of 100% renewable fuels at its Cartagena plant, the first of its kind in Spain and Portugal. The facility can produce up to 250,000 tonnes of renewable fuels annually, including SAF derived from waste. Repsol CEO Josu Jon Imaz highlighted the significance of this agreement with IAG, which aligns with Repsol’s commitment to renewable fuels as a cornerstone for decarbonizing the transportation sector.
“This agreement with IAG, one of the largest airline groups in the world, consolidates our commitment to 100% renewable fuels as a key lever for the decarbonization of transport in Spain. The aviation sector needs solutions such as sustainable aviation fuels and, at Repsol, we are prepared to supply them through our 100% renewable fuels plant in Cartagena.”
This deal highlights the synergy between IAG’s decarbonization targets and Repsol’s renewable fuel production capabilities. The collaboration could serve as a model for other airline groups and energy companies looking to achieve similar sustainability goals. The extensive investment by both parties signals a strong commitment to reducing aviation’s carbon footprint, showcasing a proactive approach towards sustainable aviation.
For the aviation industry, the utilization of SAF is a pivotal step towards a more sustainable future. The investments in SAF reflect a broader trend within the industry to prioritize environmental sustainability, driven by both regulatory demands and corporate responsibility. As governments and industries align their efforts, the availability and affordability of SAF are expected to improve, further accelerating the transition to greener aviation.
