Airbus, engineering and technology company Technip Energies, aerospace group Safran, and bioethanol producer Tereos announced an agreement to launch a new joint venture to develop a large-scale Sustainable Aviation Fuel (SAF) production project at the Port of Dunkirk, in Northern France.

According to the companies, the new partnership will develop production capacity of 160,000 tons of SAF per year, making it one of the largest facilities of its kind in Europe.

Generally produced from resources such as waste oils and agricultural residues, SAF is seen as one of the key tools to help decarbonize the aviation industry in the near- to medium-term. According to a recent report by the International Air Transport Association (IATA), however, while SAF production nearly doubled in 2025, it still accounted for just 0.6% of airlines’ total fuel consumption. Efforts to meaningfully increase the production of SAF face barriers including high initial costs and feedstock challenges.

The new partnership will use the Alcohol-to-Jet (AtJ) technological pathway, which converts advanced ethanol, produced from agricultural and forestry residues into drop-in aviation fuel that can be blended with conventional jet fuel and used in existing engines and aircraft.

Julie Kitcher, Chief Sustainability Officer and Communications of Airbus, said:

“With renewable energy facing global headwinds, Airbus will work with our partners to open up an abundant new SAF pathway, Alcohol-to-Jet fuel, in France. This project aims to increase the availability of lower-carbon fuels, contribute to reducing aviation emissions and strengthen Europe’s energy supply security, while creating a new job market.”

Under the new agreement, the partners have committed to fund the project’s development phase, including engineering studies and other activities required to consider a Final Investment Decision (FID).

During the project development phase of the new agreement, Technip Energies will act as the lead developer and engineering service provider,  with Airbus and Safran as industrial partners, offtake facilitators and potential SAF offtakers, while Tereos will supply and source the advanced ethanol required for the project.

Technip Energies will also provide an industrial site in Northern France, offering logistical advantages to Rebound for feedstock and product transport, and streamlining the permit and regulatory process, the companies added.

Jérôme Bos, Chief Strategy Officer of Tereos said:

“This project is fully aligned with Tereos’ mission to develop low-carbon industrial value chains by creating value from agricultural production. Tereos will bring to the project its expertise and industrial assets dedicated to the production of advanced ethanol. It also provides a strong illustration of the development of a bioeconomy rooted in French and European agricultural production.”

The companies said that they will advance the project through a staged development process, including selection of the technology licensor, permitting activities, pre-FEED and FEED (Front-end engineering studies, finalization of feedstock supply and SAF offtake agreements, and securing financing for construction of the facility.

Nathalie Stubler, Chief Sustainability Officer of Safran said:

“Developing Sustainable Aviation Fuel at scale is essential for decarbonising air transport. This ambitious project brings together leading French and European expertise, supporting the emergence of a competitive SAF industry. By joining forces with our partners, Safran reaffirms its commitment to innovation and environmental responsibility, fully aligned with our strategy to reduce CO₂ emissions and support the energy transition in aviation.”