Spain's Cepsa agrees SAF development deal with Iberia airline

Spain-based refinery operator Cepsa is to develop and produce sustainable aviation fuel from waste, recycled used oils, and other sustainable plant-based feedstocks with airline operator Iberia, the companies said Jan. 24.

The deal signed by Cepsa and Iberia Group will also see them look into other alternative energies such as renewable hydrogen and electricity with the aim of promoting sustainable mobility for aircraft and the fleet of airport ground vehicles. The companies did not disclose financial details or volumes.

The agreement is in line with the European Commission's 'Fit for 55' climate package, which includes a legislative initiative called 'RefuelEU Aviation' that aims to boost the supply and demand of aviation biofuels in the EU to 2% use by 2025, 5% by 2030, and 63% by 2050, the companies said.

As part of London-based IAG Group, Iberia and Iberia Express have committed to achieving net zero emissions by 2050 and to operating a minimum of 10% of their flights with sustainably sourced fuels by 2030.

Cepsa, which operates 460,000 b/d of refining capacity in southern Spain, has been producing biofuels in its refineries for more than 10 years and is already engaged in research to convert waste and used oils into fuels from renewable sources with a high energy value.

"To decarbonize the aviation sector, the development, production, and distribution of sustainably sourced fuels at affordable prices and in sufficient quantity to supply airlines is essential. We are confident that this agreement with Cepsa will contribute to that goal," Iberia chairman and CEO Javier Sanchez-Prieto said.

Compared to conventional fuel, SAF can reduce aviation emissions by up to 80% over conventional kerosene during its life cycle, according to the International Air Transport Association.