Neste, World Fuel Services Extend SAF Partnership for Five Years in Europe

Neste and World Fuel Services have extended their partnership for five years, a move designed to significantly expand the availability of Sustainable Aviation Fuel (SAF) across Europe. The agreement aims to supply SAF to more than 100 airports within the World Fuel Services network, directly addressing the growing demand from airlines facing new regulatory emissions targets.

This sustainable aviation fuel partnership is critical for operators preparing for compliance with upcoming mandates. The European Union's ReFuelEU Aviation Regulation requires a minimum of 2% SAF to be blended with conventional jet fuel starting in 2025. According to European Union data, this mandate will increase to 6% in 2030 and 70% by 2050. The agreement also positions World Fuel Services to meet the requirements of the similar United Kingdom Sustainable Aviation Fuel Mandate, strengthening the renewable jet fuel supply chain in the region.

Production Capacity and Market Demand

To meet this demand, Neste is scaling its production capabilities. According to a Neste press release, the company currently has a global SAF production capacity of 1.5 million tons per year. This includes up to 500,000 tons annually from its refinery in Rotterdam. Neste plans to increase its total SAF production capability to 2.2 million tons per annum by 2027.

The push for aviation decarbonization comes as SAF usage remains low. Data from the European Union Aviation Safety Agency (EASA) showed that in 2024, SAF production accounted for only 0.53% of global jet fuel consumption. Strategic partnerships between producers like Neste and established distributors like World Fuel Services are essential to bridge this gap by ensuring the 'drop-in' fuel is available where it is needed, integrating seamlessly with existing airport infrastructure.

Future Outlook

With the initial 2% ReFuelEU mandate taking effect in 2025, this five-year agreement provides a clear supply pathway for airlines in the World Fuel Services network. The collaboration underscores a broader industry trend of producers and distributors forming alliances to build a resilient supply chain for renewable fuels, which is fundamental for the aviation sector to meet its emissions reduction targets.

Key Takeaways

• Extends the SAF supply partnership for five years across Europe.
• Provides SAF to more than 100 airports in the World Fuel Services network.
• Supports airline compliance with upcoming ReFuelEU and UK SAF mandates.
• Aligns with Neste's plan to increase SAF production to 2.2 million tons by 2027.

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