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Neste, Air BP in deal to supply sustainable aviation fuel in Sweden

London — Neste and Air BP have entered into an agreement to deliver sustainable aviation fuel to airline and airport customers in Sweden in 2019, the companies said in a press release Monday.

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Neste and Air BP will embark on the joint development of a viable supply-chain solution for sustainable aviation fuel to the Swedish market, after they first announced plans to explore this in 2018.

This comes shortly after Sweden announced a proposal in March to introduce a greenhouse gas reduction mandate for aviation fuel sold in the country. The proposed reduction would be 0.8% in 2021, gradually increasing to 27% by 2030.

The reduction levels are estimated to be equivalent to 1% (11,000 mt) sustainable aviation fuel in 2021, 5% (56,000 mt) in 2025 and 30% (340,000 mt) in 2030.

Neste said its aviation fuel is produced from non-palm renewable and sustainable raw materials, and can reduce up to 80% of greenhouse gas emissions over its life-cycle compared with conventional jet fuel.

Air BP has supplied sustainable aviation fuel in the Nordic countries since 2014 at around 10 airports.

-- Chrysa Glystra,

-- Edited by Jonathan Dart,