IAG and Microsoft Forge Historic Agreement to Accelerate Sustainable Aviation Fuel Adoption

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 pioneering partnership, International Airlines Group (IAG) and Microsoft have jointly entered into the largest co-funded purchase agreement for Sustainable Aviation Fuel (SAF) emissions reductions, marking a significant advancement in aviation sustainability.

Addressing Carbon Emissions

This collaboration is a proactive response to the urgent need for carbon emission reductions in the aviation sector, demonstrating both organisations’ commitment to sustainable practices. IAG and Microsoft will share the cost of procuring SAF, highlighting their dedication to environmental stewardship.

The Agreement’s Impact

The agreement involves the purchase of 14,700 tonnes of SAF from Phillips 66 Limited’s Humber refinery. For IAG, this aligns with their goal to source 10% of their fuel requirements from SAF by 2030. Meanwhile, Microsoft views this as a strategic move to cut its Scope 3 emissions, aligning with its ambition to be carbon negative by 2030.

By supplying SAF to IAG member airlines such as British Airways, Aer Lingus, Iberia, and Vueling, operating from Heathrow and Gatwick airports, this partnership will significantly curb aviation-related carbon emissions. The fuel is set to be utilised in 2023, marking a crucial step forward in sustainable aviation.

IAG’s Broader Sustainability Efforts

IAG’s alliance with Microsoft is part of a broader sustainability initiative. The group recently invested in Nova Pangaea Technologies, a Teesside-based cleantech company that converts agricultural waste and wood residues into second-generation bioethanol, a potential feedstock for SAF.

This investment supports the production and scale-up of SAF, fostering a commercially viable SAF market. By backing companies like Nova Pangaea Technologies, IAG is not only advancing sustainable fuel technology but also driving global investments necessary for the market’s development.

Microsoft’s Decarbonisation Strategy

For Microsoft, the partnership with IAG is a critical component of its strategy to mitigate emissions from business travel and freight operations. This initiative underscores the economic and societal benefits of aviation while committing to sustainable practices.

The agreement not only propels Microsoft towards its carbon-negative target but also provides essential funding for future SAF development, contributing to the market’s expansion. Through this investment, Microsoft is actively participating in the transition towards a greener aviation industry.

The Future of Sustainable Aviation Fuel

The IAG-Microsoft partnership underscores the increasing importance of SAF in achieving carbon emission reductions. As the aviation industry aims for greater environmental responsibility, the adoption of SAF is vital.

This joint purchase agreement is a significant step towards a sustainable aviation future, creating a commercially viable SAF market capable of meeting rising demands. The collaboration exemplifies the power of partnership in fostering innovation and driving positive industry change.

IAG and Microsoft’s combined efforts highlight a crucial shift towards sustainable aviation practices. By leading the way with the largest co-funded SAF purchase agreement, they set a precedent for others in the industry. As the aviation sector continues to prioritise sustainability, initiatives like this will be pivotal in achieving carbon reduction targets, ensuring a greener future for all.