IAG signs agreement with Microsoft for large-scale SAF purchase

International Airlines Group (IAG) and Microsoft have signed the largest co-funded purchase agreement for sustainable aviation fuel (SAF) emissions reductions globally, where both parties are funding part of the cost of the supply.
IAG’s industry-leading SAF programme has seen it commit to $865 million (€791 million) in future SAF purchases and investments as of the end of 2022.
It has a target to meet 10% of its fuel needs from SAF by 2030 and was the first European airline group to set this target.
IAG is funding supply agreements as well as investments to accelerate SAF production, including in Nova Pangaea’s waste-to- fuel production facility in the UK.
Microsoft will co-fund 14,700 tonnes of IAG’s SAF purchasing in 2023, enough to fully fuel approximately 300 British Airways Boeing 787 flights between London and Seattle.
IAG has been working with the aviation industry in its campaign for further government policy support to stimulate investment in SAF production.
"Reducing emissions from aviation through decarbonisation efforts such as this, whilst recognising the societal and economic benefits of flying requires increased commitment from all stakeholders,” said Julia Fidler, environmental sustainability fuel and materials decarbonisation lead at Microsoft.
“This agreement represents a new milestone in SAF purchasing that will allow Microsoft to address emissions from both our business travel and freight for our cloud supply chain, while helping to fund future SAF development and scale the market as a whole.”
Jonathon Counsell, head of sustainability at IAG, added: “The development of SAF is critical for the long-term decarbonisation of our industry.
“Strong commercial partnerships like this will help stimulate the global investment needed to build and sustain a commercially viable SAF market. We are pleased to see high profile organisations like Microsoft leading the way.”