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About Commodity Insights
02 Dec 2021 | 22:11 UTC
Highlights
First commercially produced UK SAF contract
Multi-year agreement to begin in early 2022
British Airways and US-based refiner Phillips 66 signed a multi-year supply agreement which will provide the airline with sustainable aviation fuel produced at the Humber refinery, according to a joint statement from both companies Dec. 2.
The SAF will be "produced at scale for the first time in the UK" at the refinery, which is located near Immingham on the North Sea, and will be supplied to British Airways in early 2022, according to the statement.
The volumes under the contract were not supplied but British Airways CEO Sean Doyle noted in the statement the agreement "forms part of our commitment, as part of International Airlines Group, to power 10% of flights with SAF by 2020."
The Humber refinery uses sustainable waste feedstock to produce the SAF, and will deliver the SAF to British Airways via existing pipeline infrastructure that feeds directly to British Airways, the statement said.
"The Humber Refinery was the first in the UK to co-process waste oils to produce renewable fuels and now we will be the first to produce SAF at scale, and we are delighted British Airways is our first UK customer," said Humber Refinery General Manager Darren Cunningham in the statement.
"We're currently refining almost half a million litres of sustainable waste feedstocks a day, and this is just a start. Markets for lower-carbon products are growing, and this agreement demonstrates our ability to supply them," he added.