Neste, World Fuel Expand SAF Supply to Over 100 European Airports

Fuel producer Neste and distributor World Fuel Services have extended their partnership for an additional five years, significantly expanding the availability of Sustainable Aviation Fuel (SAF) to more than 100 airports across the United Kingdom and Europe. The agreement strengthens the supply chain for renewable jet fuel as airlines face increasing regulatory pressure to decarbonize operations.

This expanded collaboration is designed to provide airlines with more reliable and scalable access to SAF, a critical component for meeting emissions reduction targets. The partnership leverages Neste's growing production capabilities with World Fuel's extensive airport fueling network, creating a more robust infrastructure for SAF delivery. For airlines operating in the region, this means greater certainty in securing the volumes needed to comply with upcoming mandates.

Partnership Details and Production Scale

According to a press release from Neste, the five-year extension builds upon an existing relationship, ensuring a consistent supply foundation for customers. Neste currently has a global SAF production capability of 1.5 million tons per year. The company aims to increase this figure to 2.2 million tons annually by 2027, supported by facilities like its renewable fuels refinery in Rotterdam, which can produce up to 500,000 tons of SAF each year.

Neste produces its SAF from 100% renewable waste and residue raw materials, such as used cooking oil and animal fat waste. This production method, often using a Hydroprocessed Esters and Fatty Acids (HEFA) pathway, avoids competition with food crops. The resulting product is a "drop-in" fuel, meaning it is chemically identical to conventional jet fuel and can be blended up to 50% without requiring any modifications to existing aircraft or airport infrastructure.

“By combining our extensive European network with Neste's growing SAF production, we are strengthening the supply foundation our customers rely on as regulatory requirements accelerate across the region,” said Duncan Storey, World Fuel's Senior Vice President for Europe, the Middle East, and Africa (EMEA). Carl Nyberg, Senior Vice President at Neste, added, “As Neste is scaling its SAF production capability... leveraging World Fuel's extensive network of airports in Europe will increase the availability and flexibility of SAF supply for airlines.”

Meeting European Regulatory Mandates

The timing of the agreement is significant, as it directly addresses the requirements of new environmental regulations in Europe. The ReFuelEU Aviation Regulation, established by the European Union, mandates a minimum blend of SAF at EU airports. According to the European Union Aviation Safety Agency (EASA), this mandate starts at 2% SAF in 2025, increasing to 6% in 2030 and rising sharply to 70% by 2050.

Similarly, the United Kingdom has its own UK SAF mandate, which also sets escalating targets for the use of sustainable fuels. The Neste and World Fuel partnership provides a direct mechanism for airlines and fuel suppliers to meet these legal obligations. By securing a long-term supply, operators can better plan their fuel procurement strategies and ensure compliance, avoiding potential penalties.

Broader Industry Implications

This partnership reflects a broader industry trend where fuel distributors and airlines are entering into multi-year agreements to secure SAF. As demand currently outstrips supply, such long-term commitments are essential for both producers, who need financial certainty to invest in expanding production, and for consumers, who need a reliable supply to meet their targets.

The focus on drop-in fuels is crucial for the industry's transition, as it allows for immediate emissions reductions without the need for costly and time-consuming fleet or infrastructure overhauls. The use of waste-based feedstocks also addresses sustainability concerns related to land use and competition with agriculture, which have been criticisms of earlier-generation biofuels.

As production scales and logistical networks mature, the availability of SAF is expected to become more widespread, though challenges related to cost and feedstock sourcing remain. Partnerships like this are a key enabler for overcoming those hurdles and making SAF a mainstream component of the aviation fuel mix.

Why This Matters

This agreement marks a critical step in operationalizing aviation's decarbonization goals. It moves beyond aspirational targets by building the tangible supply chain infrastructure necessary for airlines to meet legally binding SAF mandates in Europe. For the aviation industry, it signals a maturing market where long-term, large-volume SAF contracts are becoming standard business practice, providing a clearer pathway to reducing the sector's environmental impact.

For global airline trends and commercial aviation news, turn to flying.flights. For airline finances, mergers, and industry strategy, visit the Business category at flying.flights/business.