IAG Cargo, the cargo division of International Airlines Group (IAG), and logistics company Kuehne+Nagel (K+N) have renewed their agreement where K+N will partially fund the acquisition of 1.6 million gallons of SAF this year for IAG Cargo’s use. They estimate that amount of SAF will reduce CO2 emissions by the cargo company by 16,500 tons.
However, this is down 25 percent from last year’s agreement between the two companies where K+N part-funded 2.1 million gallons of SAF for IAG Cargo.
A spokesperson for K+N told Aviation Week: “We wanted to source more—even more than [last year’s 2.1 million gallons]—but the demand for SAF has been very high in 2023 compared to 2022, due to larger volumes going to the passenger side, leaving less for cargo.”
IAG has committed to fulfilling 10% of its fuel needs with SAF by 2030, and allocated $865 million for future SAF investments and purchases.
The SAF is being sourced by IAG from the producer Phillips 66 Limited, North Lincolnshire, UK
SAF is produced from sustainable used cooking oil and food waste, and can reduce CO2 emissions by over 90% compared to traditional jet fuel.
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