Japan’s All Nippo Airways announced a 10-year sustainable aviation fuel (SAF) supply agreement with renewable fuels company Raven SR and investor Itochu, for use on major international routes, with quantities to be supplied under the deal scaling to as much as 200,000 tonnes (approximately 250 million liters) per year.
The deals come as the aviation industry is facing increasing scrutiny as a significant source of GHG emissions, responsible for 2-3% of global emissions, with that figure set to rise dramatically over the coming decades if no action is taken. SAF, generally produced from sustainable resources, like waste oils and agricultural residues, is seen by market participants as one of the key tools for the industry to address its climate impact, as it generates significantly lower lifecycle carbon emissions relative to conventional jet fuel.
Under the new agreement, beginning in 2025, ANA will be supplied with 50,000 tonnes of SAF in the first year, with annual incremental increases reaching 200,000 tonnes in year 10. The ANA Group has set a goal of replacing at least 10% of its jet fuel with SAF by FY2030 and of becoming carbon neutral by FY2050.
Hideo Miyake, Executive Vice President at ANA overseeing Procurement, said:
“As part of our climate transition strategies, ANA is dedicated to being an industry leader with our environmental commitments. This announcement with ITOCHU and Raven SR will be of great importance and support our mid- and long-term carbon reduction goals.”
Raven uses patented steam/CO2 reforming technology to convert various types of local and regional waste and methane from landfill waste into renewable hydrogen and clean fuels. The company plans to begin production of SAF in California by 2025, and to grow its SAF production in the U.S. and Europe to 200,000 tonnes annually in 2034.
Matt Murdock, CEO of Raven SR., said:
“We are grateful our strategic partner Itochu introduced us to ANA to initiate this landmark agreement for long-term SAF supplies that will foster growth for Raven SR on a global basis and help ANA with its carbon reduction commitments. We expect that our agreement with ANA to supply SAF in strategic markets globally will enable buying local fuel produced from local waste. We see growing interest in such efficiency and circularity in renewable fuel distribution for aviation and other transportation sectors.”