Airbus and Air bp Sign Multi-Year SAF Supply Deal in Europe

Airbus has entered into a significant multi-year agreement with Air bp for the supply of Sustainable Aviation Fuel (SAF). The contract covers fuel provisions for the manufacturer's key operations in Germany and Spain, directly supporting its aircraft testing and delivery flights. This Airbus Air bp agreement is a critical step in securing a consistent supply of lower-emission fuel as European aviation prepares for stricter environmental mandates.

The deal encompasses both SAF and conventional jet fuel, ensuring operational continuity for the Original Equipment Manufacturer (OEM). By proactively securing a long-term SAF supply, Airbus is not only addressing its own corporate sustainability targets but also contributing to the broader development of the renewable energy in aerospace market. The fuel will be used for a range of activities, including pre-delivery test flights for new aircraft and the ferry flights that deliver completed airframes to airline customers worldwide.

The Role of SAF in Decarbonization

Sustainable Aviation Fuel is considered the most viable near-term solution for aviation emissions reduction. According to Air bp, SAF can reduce lifecycle carbon dioxide emissions by up to 80% compared to conventional jet fuel. It is a 'drop-in' fuel, meaning it is chemically identical to traditional kerosene and can be used in existing aircraft and airport infrastructure without modification. Currently, all Airbus aircraft are certified to operate with up to a 50% blend of SAF with conventional fuel.

The manufacturer has set an ambitious target for all its commercial aircraft and helicopters to be capable of flying with 100% SAF by 2030. This multi-year fuel contract is a foundational element of that strategy, providing the necessary supply to conduct the research, development, and testing required to achieve full certification.

Christian Frohn, Vice President at Air bp, commented on the deal, stating, “This agreement highlights our strong partnership with Airbus and our ability to deliver complex, multi-country solutions that support operational efficiency and emissions reduction. We are focused on our advantaged markets and building great partnerships like this one with Airbus.” The official announcement details the scope of the Airbus and Air bp agreement.

Regulatory and Industry Context

The agreement is strategically timed with the introduction of new European Union regulations. The ReFuelEU Aviation Regulation is a key driver for the SAF in European aviation market, setting mandatory blending targets for fuel suppliers. The regulation requires a minimum SAF blend of 2% at EU airports starting in 2025. This mandate is set to increase progressively, reaching 6% in 2030 and 70% by 2050.

Despite its environmental benefits, widespread SAF adoption faces significant hurdles. The fuel is currently several times more expensive than conventional jet fuel, and production capacity is limited. According to the International Air Transport Association (IATA), global SAF production in 2023 accounted for approximately 0.2% of total global jet fuel consumption. However, IATA also estimates that SAF could contribute around 65% of the emissions reduction needed for the aviation industry to achieve its goal of net-zero carbon emissions by 2050. This highlights the urgent need to scale the biofuel supply chain.

What Comes Next

This agreement between Airbus and Air bp serves as a model for how OEMs can help stimulate the SAF market. By creating stable, long-term demand through offtake agreements, manufacturers de-risk the significant capital investment required to build new SAF production facilities. The deal will immediately impact Airbus operations in Spain and Germany, integrating SAF into the company's daily functions.

Looking ahead, the industry will be focused on scaling production technologies and securing diverse feedstocks to bring down costs and increase availability. As the 2025 ReFuelEU mandate approaches, more airlines, airports, and manufacturers are expected to announce similar long-term supply contracts to ensure compliance and meet their voluntary climate targets. Airbus will continue its work on certifying 100% SAF capability, a technical milestone that will be crucial for the industry's long-term decarbonization pathway.

Why This Matters

This contract is more than a fuel transaction; it is a strategic investment in the aviation industry's sustainable future. By securing a multi-year supply, Airbus stabilizes a key component of its decarbonization strategy and sends a strong demand signal to SAF producers. The move positions the manufacturer as a leader in corporate sustainability initiatives and directly supports the infrastructure build-out needed to meet Europe's ambitious environmental regulations.

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