Lufthansa sees potential in algae biofuels

German airline Lufthansa is set to work with Australian biofuels company Algae Tec to build a large-scale plant looking to produce green aviation fuel from algae.

The site of the new plant is yet to be decided but it is believed a country in Europe with a large CO₂ source will eventually be named as host.

‘Lufthansa will arrange 100% funding for the project, while we will receive licence fees and profits from the project which we’ll manage,’ read an Algae Tec statement.

Lufthansa has committed to a long-term offtake agreement and will purchase 50% of produced fuel at an agreed price.

As the project is still to be finalised by the Lufthansa board, numbers for construction price, plant size or start up date are not yet available.