Qatar Airways signs multimillion SAF deal with Shell

by Payload Asia

Qatar Airways has signed a deal with Shell to source 3,000 metric tonnes of neat sustainable aviation fuel (SAF) at Amsterdam Schiphol Airport.

Qatar Airways said it is the first carrier in the Middle East and Africa to procure a large SAF amount in Europe beyond government SAF mandates. According to the airline, the new contract encompasses the existing jet fuel contract with Shell at Amsterdam which will now see Qatar Airways using at least a 5 percent SAF blend over the contract period for the fiscal year 2023-2024.

It is estimated that the airline will be reducing its emissions on flights from Amsterdam by approximately 7,500 tonnes of CO2 over this period.

“We are strongly committed to supporting the industry’s effort to ramp-up the use of sustainable aviation fuel, as one of the key pillars to decarbonise the aviation industry,” said airline chief Mr. Akbar Al Baker.

“Last year, we signed our first offtake agreement in the US, and now we are placing a multi-million US dollar SAF deal in Amsterdam to illustrate our SAF commitment and reiterate our calls for a more robust SAF supply chain across our global network”.

“We remain steadfast in our ambitious target of 10 percent SAF use by 2030 and this announcement, establishes another landmark for Qatar Airways that underlines the positive outcome of the industry’s collaboration which is critical to accelerating the SAF supply and achieving our target. SAF is still 3 to 5 times more expensive than fossil-based jet fuel. This is why it is essential for all stakeholders to play their part in facilitating research & development of SAF facilities, enhancing economies of scale, providing financing and placing supportive policies.”

Qatar Airways said the bilateral agreement with Shell is part of a wider effort initiated by oneworld alliance, which has a set target of using SAF for 10 percent of combined fuel volumes by 2030. The airline is also working on introducing a solution that will allow passengers and customers to offset their emissions by contributing to the cost of SAF.