In October 2022, Air France-KLM announced an offtake agreement for 600,000 tons of SAF from DG Fuels, to be delivered between 2027 and 2036.
Now, the Group has announced a step forward in its cooperation with DG Fuels, with Air France investing $4.7 million in the SAF producer. This investment – a first for Air France-KLM – represents a key development in the strengthening of the partnership between the Air France-KLM Group and DG Fuels.
It will support the completion of the development work necessary to reach the Final Investment Decision (FID) on DG Fuels’ first sustainable aviation fuel plant, which will be located in Louisiana. This investment confirms the Group’s aim of gradually establishing a diversified network able to meet worldwide demand.
In addition to this investment, Air France-KLM has acquired a new option to purchase up to 75,000 tons of SAF per year from DG Fuels (45,000 tons in Maine; 30,000 tons in Louisiana). 45,000 incremental offtake relates to future SAF that will be produced by DG Fuels’ second U.S. production facility with deliveries planned to start as early as 2029.
Fully committed to reducing its environmental impact, the Air France-KLM Group aims to reduce its CO2 emissions per passenger/km by 30% by 2030 compared to 2019. Its decarbonization trajectory factors in the incorporation of a minimum of 10% SAF by 2030, alongside fleet renewal and eco-piloting.
“Air France-KLM welcomes this expanded cooperation with DG Fuels. Supporting the scale-up of advanced waste-to-aviation fuel technology is a crucial step to growing the SAF industry. This is the first time Air France-KLM has made a financial investment in a SAF producer and we look forward to further reinforcing our long-term partnership with DG Fuels.”, said Constance Thio, EVP Human Resources and Sustainability, Air France-KLM.
“We are very pleased to broaden our strategic relationship with Air France-KLM. This expansion of our existing relationship is very important to both DG Fuels and to the aviation industry as we build momentum to successfully implementing our first SAF facility and make major scale up plans thereafter. We look forward to working with Air France-KLM as we deploy our SAF technology at additional locations in the United States, Europe and Asia.”, said Christopher Chaput, President & CFO of DG Fuels.
DG Fuels, SAF provider with an efficient, low-cost production process
As a result of its high efficiency carbon conversion process, DG Fuels maximizes the amount of SAF produced from a fixed amount of biomass. This efficiency, combined with reasonable scale results in attractively low unit production costs, allowing DG Fuels to achieve sustained profitability while still offering airline and other SAF customers prices that are competitive with conventional jet fuel. SAF produced by DG Fuels does not compete with global food supplies in any way. As a testament to its commitment to using renewable power, DG Fuels is a major supporter of wind, solar and other forms of zero carbon power.