Air France-KLM backs DG Fuels’ SAF project in Louisiana

Franco-Dutch airline holding company Air France-KLM (EPA:AF) has agreed to invest in DG Fuels LLC to support the development of its project for a sustainable aviation fuel (SAF) plant in Louisiana and has also committed to buying an additional amount of biofuel from the US biosynthetic fuel producer.

Air France-KLM said recently that it is pouring USD 4.7 million (EUR 4.39m) into DG Fuels to help it complete the development work necessary to reach a Final Investment Decision (FID) on its first SAF plant, which is projected to produce 180 million gallons (681 million l) of biofuel per year.

The FID on the proposed USD-4.2-billion project is expected to be achieved early next year, according to an earlier statement.

In addition, the airline group has acquired a new option to purchase up to 75,000 tonnes of SAF per year from DG Fuels, with deliveries scheduled to start in 2029. This follows a previous long-term offtake contract sealed by the companies last year.

“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, executive vice president of human resources and sustainability at Air France-KLM.

The airline holding company is seeking to incorporate at least 10% SAF by 2030.

(USD 1 = EUR 0.935)

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