SYDNEY (Reuters) – More companies are buying large amounts of sustainable aviation fuel (SAF) to reduce their carbon footprint, and the large amount of clean energy airlines need to meet their emissions targets. promoting production.
Airlines, travel agents and fuel manufacturers now offer their corporate customers the opportunity to purchase SAFs that are not tied to individual flights.
The industry is moving to “book and bill” accounting systems like those used in the renewable power sector, using feedstocks such as cooking oil to reduce emissions by up to 80% from conventional fuels Given the relative scarcity of SAFs, greater flexibility is now possible. Only available at select airports worldwide.
A recent deal announced by Qantas Airways (QAN.AX) sees five companies benefit from emissions reductions by using SAF provided by BP (BP.L) at London’s Heathrow Airport to contribute to airline costs. pay a surcharge for
The companies involved can claim that the emission reductions will be used for a variety of potential purposes not related to business travel from London to Australia.
Participating firm Boston Consulting Group (BCG), which also acquired SAF through United Airlines (UAL.O) and fuel suppliers SkyNRG and Neste (NESTE.HE), is expanding its SAF market and targeting internal targets. He said he would like to help achieve that.
“Our largest source of emissions is from business travel, and we have committed to halving our emissions by 2025 compared to 2018,” said David, Chief Sustainability Officer at BCG. Webb said.
Another Qantas partner, Australia Post, said it will use the credits to reduce emissions from air cargo during times when SAF is not available in Australia.
Qantas says the more companies that join the program, the more viable and cost-effective the local SAF industry will be.
A growing number of airlines have similar programs, including United, Lufthansa (LHAG.DE), Cathay Pacific (0293.HK), Air France KLM (AIRF.PA) and Japan’s ANA Holdings (9202.T).
SAFs accounted for only 0.5% of aviation fuel in 2021, but many airlines have set targets for 10% by 2030, with ‘net-zero’ emissions by 2050. Industry targets rely on SAF to account for 65% of fuel.
Denise Aucler, Corporate Travel Campaign Manager at Transport & Environment, a European non-governmental organization, said the interest of the corporate sector is around 20% of global air travel and 30% in Europe. Given this, he said it could create momentum for the SAF industry to expand.
Only a limited number of airlines, such as Finnair (FIA1S.HE) and Scandinavia’s SAS (SAS.ST), allow private customers such as leisure travelers to cut SAF fares to reduce emissions from their flights. I agree to pay.
“Green Premium”
Purchasing SAFs is more costly than buying emissions offsets, but experts say that alongside switching to cleaner alternatives such as videoconferencing and rail, it is an important part of reducing travel emissions. He said he could play a role.
Given that it costs about three to five times more than conventional jet fuel, companies are paying a “green premium” when buying SAF, said Neste, the world’s largest provider of corporate purchase programs. Sami Jauhaianen, APAC Vice President of Renewable Aviation Business.
“They have contracts with us to pay a cost premium for sustainable aviation fuel over conventional jet fuel and allow us to provide sustainable aviation fuel for partner airlines to consume,” he said. “And we can help our end customers with the relevant reports and documentation they need to see the benefits.”
Businesses can contract directly with airlines, travel agents such as American Express Global Business Travel (Amex GBT) (GBTG.N), and fuel suppliers such as Neste to claim SAF credits and avoid double billing. pitfalls can be avoided.
According to a World Economic Forum (WEF) white paper on SAF accounting and reporting guidelines released in October, as more countries mandate that all aviation fuel be blended with a certain percentage of SAF, The problem of double billing will become more and more serious. France already has a 1% requirement for her, but the European Union will mandate 2% for him from 2025.
Amex GBT collaborates with Shell (SHEL.L) and Accenture (ACN.F) to create a blockchain-based platform where certificates purchased by corporate customers face the largest books and claims trial to date guaranteed to be irreplaceable in
“With this platform, you can buy SAF and fly with the airline of your choice,” said Drew Crawley, chief commercial officer of Amex GBT.
Reporting by Jamie Freed. Edited by Stephen Coates
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