ATOBA Energy and easyJet, in partnership with World Fuel Services (World Fuel) have announced the signing of a Memorandum of Understanding for the development of long-term supply of Sustainable Aviation Fuel (SAF) for easyJet’s operations in Europe and the UK.
The agreement supports the airline’s decarbonisation strategy and is expected to unlock the SAF value chain through the combination of ATOBA’s SAF aggregation, enabling management of pricing and supply volatility risk for airlines and will be further enhanced by World Fuel’s global jet fuel logistics, blending, storage and distribution infrastructure.
The agreement is a step toward scaling advanced SAF technologies and is intended to support the airline’s decarbonisation plans.
The SAF market is facing challenges in expanding at the rate demanded by environmental needs and regulatory mandates. While producers need long-term, stable pricing contracts to ensure a return on their investments, easyJet is seeking competitive SAF market prices in the context of a nascent industry with diverse competing technologies. This conflict of expectations currently hinders the development of SAF production projects and ATOBA’s unique business model brings a compelling solution.
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ATOBA uniquely facilitates the development of SAF production through its upstream and downstream SAF offtake portfolio management. By offtaking from diversified producers that use production technologies like Alcohol to Jet, Gas-Fischer Tropsch, or Power to Liquids, ATOBA mitigates technological and pricing risks associated with the various SAF production pathways and facilitates the closing of long-term offtake agreements among airlines, jet-fuel distributors, SAF producers, and financial institutions, which are essential for scaling the industry.
World Fuel intends to manage logistics, blending, storage and regulatory fulfillment for the EU and UK mandates. World Fuel’s role in ensuring the seamless integration of SAF into easyJet’s supply chain underscores the parties’ joint commitment to developing an efficient and compliant end-to-end sustainable aviation fuel supply chain.
Raminder Shergill, Director of Fuel Strategy at easyJet commented: “We are deeply committed to fostering the growth of the Sustainable Aviation Fuel industry and are thrilled to see ATOBA introduce their innovative approach to catalysing the development of the SAF market.
“By addressing the long-term offtake challenges that have hindered investment in SAF projects, ATOBA’s approach paves the way for accelerated industry expansion, greater investment confidence, and credible pricing and supply security for easyJet”.
Arnaud Namer, co-founder and CEO of ATOBA Energy, added: “We are proud to partner with easyJet and World Fuel, two aviation industry leaders taking bold and proactive steps to accelerate aviation’s transition to Sustainable Aviation Fuels. With their expertise in highly efficient operational cost management, they are setting a strong precedent for the industry. We are excited to support their transition through our SAF aggregation services, providing airlines with long-term competitive advantages as they shift toward more sustainable fuels.”
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