Air bp, the international supplier of aviation fuel products and services, and Neste, the world's largest producer of renewable diesel and sustainable aviation fuels (SAF), have signed an agreement to offer a larger volume of sustainable aviation fuel to airport customers in 2020 and 2021. The volume is five times larger than that of the companies in 2019. Air bp will make the Neste-produced SAF available at selected airports in Europe, with deliveries to airports such as Stockholm (ARN) and Oslo (OSL) expected in the coming weeks .
The increased supply of SAF is in response to rising demand from existing and new airline customers, as well as from Norway, where a mandate requires 0,5% of all jet fuel sold to be SAF. Neste's SAF is made from 100% renewable waste and residual raw materials. In its neat form and throughout its life cycle, it can reduce up to 80% of greenhouse gas emissions compared to conventional jet fuel. SAF undergoes the same quality tests as regular fossil jet fuel and can be mixed up to 50% to fuel aircraft. Currently, SAF offers the only viable drop-in alternative to fossil liquid fuels for powering commercial aircraft.
Neste's annual renewable jet fuel capacity is currently 100.000 tons. With the expansion of their Singapore refinery and possible additional investments in their Rotterdam refinery, Neste will have the capacity to produce around 2023 million tons of SAF annually by 1,5. Air bp has been supplying SAF since 2010 and to date has served more than 20 customers and 16 airports worldwide, including Norwegian Airport Oslo, where it was the first to provide Neste-produced SAF through the existing airport fuel infrastructure, in partnership with other industries.
In 2018 announced air bp and Neste plans to explore and develop supply chain solutions for delivering SAF to airports and airlines. As a next step in their collaboration, they jointly developed a viable supply chain solution for sustainable aviation fuel for the Swedish market in April 2019. This latest step in their collaboration will help increase the availability of SAF at various airports by leveraging Air bp and Neste's expertise in manufacturing, blending, delivery and safe operations.
