IAG and Microsoft Collaborate on Sustainable Aviation Fuel Purchase

ByTravelling For Business

August 15, 2023
In a groundbreaking partnership, International Airlines Group (IAG) and Microsoft have joined forces to make the largest co-funded purchase agreement for Sustainable Aviation Fuel (SAF) emissions reductions globally.In a groundbreaking partnership, International Airlines Group (IAG) and Microsoft have joined forces to make the largest co-funded purchase agreement for Sustainable Aviation Fuel (SAF) emissions reductions globally.

In a groundbreaking partnership, International Airlines Group (IAG) and Microsoft have joined forces to make the largest co-funded purchase agreement for Sustainable Aviation Fuel (SAF) emissions reductions globally.

This collaboration aims to address the pressing issue of carbon emissions in the aviation industry and drive the adoption of sustainable practices. The two organizations have committed to funding a portion of the cost of the supply, demonstrating their shared commitment to sustainability.

The Significance of the Agreement

The purchase agreement entails the procurement of 14,700 tonnes of Sustainable Aviation Fuel from Phillips 66 Limited’s Humber refinery. For IAG, this aligns with their ambitious target of meeting 10 percent of their fuel needs with SAF by 2030. Microsoft, on the other hand, sees this collaboration as a means to reduce its Scope 3 emissions and work towards its goal of becoming carbon negative by 2030.

By supplying the fuel to IAG member carriers, including British Airways, Aer Lingus, Iberia, and Vueling, operating from London’s Heathrow and Gatwick airports, this partnership will have a tangible impact on reducing carbon emissions in the aviation sector. The fuel is expected to be utilized in 2023, marking a significant step forward in the adoption of sustainable practices within the industry.

IAG’s Commitment to Sustainability

IAG’s collaboration with Microsoft is part of their broader commitment to sustainability and reducing their environmental impact. The company recently announced an investment in Nova Pangaea Technologies, a cleantech company based in Teesside, which specializes in converting agricultural waste and wood residue feedstocks into second-generation bioethanol.

This innovative technology allows for the production of SAF, which can be used as a sustainable alternative to traditional aviation fuel. By investing in companies like Nova Pangaea Technologies, IAG is not only supporting the development and scale-up of SAF but also stimulating the global investment necessary to establish a commercially viable SAF market.

Microsoft’s Decarbonization Efforts

For Microsoft, the collaboration with IAG represents a significant milestone in their efforts to address emissions from both their business travel and freight operations. By reducing emissions from aviation through decarbonization initiatives like this, Microsoft aims to acknowledge the societal and economic benefits of flying while committing to increased sustainability efforts.

The joint purchase agreement not only helps Microsoft make progress towards its carbon-negative goal but also provides funds for future SAF development and supports the overall scaling of the market. By investing in sustainable aviation practices, Microsoft is actively contributing to the transition to a greener and more sustainable future for the aviation industry.

The Future of Sustainable Aviation Fuel

The collaboration between IAG and Microsoft serves as a testament to the growing recognition of the importance of Sustainable Aviation Fuel in reducing carbon emissions. As the aviation industry strives to become more environmentally friendly, the adoption of SAF is crucial.

The joint purchase agreement is a significant step towards creating a commercially viable SAF market, one that can meet the increasing demand for sustainable alternatives to traditional aviation fuel. This collaboration not only demonstrates the commitment of IAG and Microsoft to sustainability but also sets an example for other stakeholders in the aviation industry to follow.

The partnership between International Airlines Group and Microsoft marks a significant milestone in the aviation industry’s transition towards sustainable practices. By making the largest co-funded purchase agreement for Sustainable Aviation Fuel, both organizations are driving the adoption of greener alternatives to traditional aviation fuel.

IAG’s commitment to meeting a significant portion of their fuel needs with SAF by 2030, combined with Microsoft’s dedication to reducing emissions and becoming carbon negative, showcases the power of collaboration in addressing environmental challenges. This partnership not only reduces carbon emissions but also supports the development and future scaling of the SAF market.

As the aviation industry continues to prioritize sustainability, the use of Sustainable Aviation Fuel will play a pivotal role in achieving carbon reduction goals. The collaboration between IAG and Microsoft serves as a shining example of how partnerships can foster innovation and drive positive change within an industry. Through such initiatives, the future of aviation can be greener and more sustainable.