Deliveries will start in 2023 with Neste supplying 1 million tons up to 2030 and DG Fuels supply 600,000 tons between 2027 and 2036.
The 1.6 million tons of fuel will avoid 4.7 million tons of CO2 emissions on a full lifecycle basis compared to fossil fuels.
By purchasing the fuel, Air France-KLM is supporting the development of the SAF production industry, which is still in its infancy.
In 2021, SAF production represented 0.01% of the jet fuel consumed worldwide, resulting in prices 3 to 4 times higher than conventional kerosene.
Calling decarbonisation the biggest challenge the aviation industry has ever faced, Benjamin Smith, CEO of Air France-KLM, says, “The contracts we have signed embody our long-term commitment to the development of SAF production capabilities around the world, to the benefit of the industry as a whole. We look forward to working with Neste and DG Fuels, with whom we have established solid partnerships which will pave the way to the creation of a global network of providers capable of meeting our future needs.”