OMV, an international integrated oil, gas and chemicals company, signed two Memorandum of Understanding (MoU) with two aviation giants last week, Ryanair and Lufthansa Group which secured supplies of sustainable aviation fuel (SAF) from the energy company.
On 13 September, Lufthansa Group signed a Memorandum of Understanding (MoU) with OMV to supply more than 800,000 tons of sustainable aviation fuel from 2023 to 2030. The companies intend to expand their existing partnership and extend it to include new locations for SAF production and delivery as well as new SAF production technologies. OMV has already been supplying the first volumes of SAF to Austrian Airlines, part of the Lufthansa Group, at Vienna International Airport since March 2022.
With the expansion of the cooperation, the Lufthansa Group promotes the availability, market ramp-up and use of SAF as essential elements for a CO2-neutral future of aviation. The Lufthansa Group is continuously examining options for long-term purchase agreements and is already the largest buyer of SAF in Europe. For OMV, the planned SAF supply partnership with the Lufthansa Group is a further step towards reducing the CO2 intensity of the product portfolio and providing solutions for the sustainable development of the aviation industry.
On 14 September, a separate MoU was signed with Ryanair to supply SAF at the airline’s airports across Romania, Austria and Germany. While the limited production of SAF remains a global aviation issue, this MoU agreement gives Ryanair unique access to purchase up to 160,000 tons of SAF from OMV over the next 8 years (starting in 2023). This would account for a total CO2 reduction of over 400,000 tons, equivalent to approximately 25,000 Ryanair flights from Dublin to Vienna.
The MoU contributes to Ryanair’s continued progress towards its target of using 12.5 per cent SAF by 2030, and the airline’s and OMV’s wider shared ambition to reach net-zero emissions by 2050. Ryanair has already made significant steps in relation to these commitments by partnering with Trinity College Dublin to open the Ryanair Sustainable Aviation Research Centre and investing 22 billion US dollars in its Gamechanger fleet, which offers 4 per cent more seats while burning 16 per cent less fuel.
“SAF is a cornerstone of our Pathway to Net Zero decarbonization strategy and we are committed to increasing our use of SAF over the coming years, a commitment that this agreement will play an instrumental role in,” said Ryanair’s Director of Sustainability, Thomas Fowler. “We are delighted with the investment and scaling of OMV’s innovative SAF production across Europe. OMV is a key partner for us in Austria, Germany and Romania and we look forward to growing this partnership as Europe’s largest airline.”
OMV is implementing numerous measures to achieve its ambitious strategic sustainability goals and SAF makes an essential contribution to this transformation. Based on the strategic outlook for the aviation sector, OMV sees sustainable aviation fuel as an important addition to its future jet fuel range. This portfolio upgrade is in line with OMV’s commitment to becoming a net-zero company by 2050 (for Scope 1,2 and 3). Clear medium and long-term emission reduction targets have been defined for this purpose as part of the OMV Strategy 2030. The planned scale-up of SAF production to 700,000 tons in 2030 will play an important role in achieving these goals.
Sustainable aviation fuel is produced by OMV by co-processing sustainable and regional raw materials, specifically used cooking oil. Compared to conventional jet fuel, SAF contributes to a reduction of greenhouse gas emissions of more than 80 per cent over the entire life cycle.