International Airlines Group (IAG) announced its largest Sustainable Aviation Fuel (SAF) purchase agreement to date, with e-SAF (power-to-liquid) producer Twelve, which will supply advanced e-SAF made from made from CO₂, water and renewable energy. (Earlier post.)

Under the terms of the fourteen-year contract, Twelve will supply IAG with 785,000 tonnes (260 million gallons) of e-SAF to support its five European airlines (British Airways, Iberia, Aer Lingus, Vueling and LEVEL). The next- generation fuel will reduce lifecycle greenhouse gas emissions by up to 90% versus conventional jet fuel.

IAG is the first European airline group to announce an e-SAF deal, and the agreement will enable IAG to continue increasing its SAF use, which was approximately 12% of the world’s supply in 2023, based on IATA’s figures for SAF production in 2023.

This deal brings the scale-up of e-SAF, produced using power-to-liquid technology, one step closer to reaching its full potential in the aviation industry. e-SAF does not face feedstock limitations, has a high degree of emissions reduction versus conventional jet fuel and has a relatively low land and water-use footprint.

Twelve, based in Berkeley, California, is a pioneer in carbon transformation and power-to-liquid technology. The company has developed and patented a proprietary process that can produce high-quality synthetic fuels from renewable electricity and CO₂. The company is constructing a demonstration plant in Moses Lake, Washington, which will supply the first SAF deliveries to IAG starting as early as 2025.

The two companies first began partnering in 2020, when Twelve joined IAG’s Hangar 51 start-up accelerator program to commercialize Twelve’s technology.

The new Twelve partnership is a major step forward for IAG on its journey towards 2030, when it has committed as a Group to fly with 10% SAF—the first European airline group to set this target. IAG has now secured one-third of the SAF needed to reach its 2030 target.

As part of its sustainability roadmap, IAG is also investing in new aircraft and implementing fuel efficiency initiatives, purchasing and investing in SAF, and advancing carbon removals to mitigate any residual emissions from its operations.

Most recently the Group’s Project Speedbird in the UK—an ethanol-to-jet fuel project between LanzaJet, Nova Pangaea and British Airways— Advanced Fuels Fund.