Shell's (LON:SHEL) aviation fuel business this week unveiled two deals for the supply of sustainable aviation fuel (SAF), one with JetBlue (NASDAQ:JBLU) and another with Air Greenland.
The agreement with JetBlue will supply the US low-cost airline with 10 million gallons (37.85 million litres) of blended SAF at Los Angeles International Airport over the next two years. There is an option for an additional purchase of up to 5 million gallons more in the third year.
Shell noted that as it aims to have 10% of its aviation jet fuel sales as SAF by 2030, it is building supply chain capabilities to blend, handle and distribute this type of fuel.
JetBlue also has a target of SAF accounting for 10% of its total fuel by 2030 and urged for greater policy effort to expand SAF usage to airports beyond California.
In addition, JetBlue and Shell will partner to offer corporate customers SAF certificates to tackle their travel emissions through Avelia, a blockchain-powered digital SAF book-and-claim solution developed by Shell and Accenture.
The second SAF supply deal has been agreed by Shell joint venture DCC & Shell Aviation Denmark. It will see Air Greenland immediately start using SAF on flights servicing the route between Sondre Stromfjord/Kangerlussuaq and Copenhagen Airport. It said that SAF will account for about 5% of fuel use along the route to and from Copenhagen in 2023, exceeding the forthcoming EU mandates.
“In light of the fact that the EU is discussing a SAF mandate starting at two percent in 2025, it is a really big step that we are now taking with Air Greenland,” said the joint venture’s chief executive Ulrik V Brendstrup.
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