British Airways, Phillips 66 agree on 1st-ever UK-produced SAF supply
British Airways will become the first airline in the world to use sustainable aviation fuel (SAF) produced in the U.K. after signing a multiyear agreement with Phillips 66 Ltd.
The SAF will be produced at scale for the first time in the U.K. at the Phillips 66 Humber Refinery near Immingham and will be supplied to British Airways to power a number of its flights from early 2022.
The supply agreement between British Airways and Phillips 66 Ltd., a wholly owned subsidiary of diversified energy manufacturing and logistics company Phillips 66, advances both companies’ commitments to a lower-carbon future. The airline, which is driving to achieve net zero carbon emissions by 2050, will purchase enough SAF to reduce lifecycle CO2 emissions by almost 100,000 metric tons, the equivalent of powering 700 net zero CO2 emissions flights between London and New York on its fuel-efficient Boeing 787 aircraft.
The SAF will be produced from sustainable waste feedstock at the Humber Refinery, which will deliver its SAF supply to British Airways via existing pipeline infrastructure that feeds directly into U.K. airports.
“This agreement marks another important step on our journey to net zero carbon emissions and forms part of our commitment, as part of International Airlines Group, to power 10 percent of flights with SAF by 2030,” said Sean Doyle, British Airways’ chairman and CEO. “The U.K. has the resources and capabilities to be a global leader in the development of SAF and scaling up the production of SAF requires a truly collaborative approach between industry and government. We are excited to develop our relationship with Phillips 66 Ltd. further with a view to growing production capacity and using a wider range of sustainable waste feedstocks to supply our future flights. The development of sustainable aviation fuel is a major focus for us and forms part of our commitment to achieving net zero carbon emissions by 2050 through a series of short-, medium- and long-term initiatives.”
The airline’s parent company, IAG, is investing $400 million over the next 20 years into the development of SAF and British Airways has existing partnerships with a number of technology and fuel companies to develop SAF plants and purchase the fuel. SAF can reduce lifecycle carbon emissions by more than 80 percent compared to the traditional jet fuel it replaces.
Darren Cunningham, general manager of the Humber Refinery and the lead executive for Phillips 66 in the U.K., said the announcement reflects the importance the aviation and energy industries are placing on sustainability and the continued development, adoption and scaling up of SAF.
“The Humber Refinery was the first in the U.K. to coprocess waste oils to produce renewable fuels and now we will be the first to produce SAF at scale, and we are delighted British Airways is our first U.K. customer,” Cunningham said. “We’re currently refining almost half a million liters of sustainable waste feedstocks a day, and this is just a start. Markets for lower-carbon products are growing, and this agreement demonstrates our ability to supply them.”
Last year Phillips 66 Ltd. invested significantly to expand its production of fuels from waste feedstocks. The investment is part of a broader energy transition plan to reduce the carbon intensity of its refinery operations and products that support 1,000 Humber Refinery jobs.
“This agreement with British Airways aligns with our strategy to create a refinery of the future, where we’re producing fuels from waste, being a critical part of the electric vehicle supply chain, reducing the carbon intensity of our processes through carbon capture and using hydrogen to power the refinery,” Cunningham said. “It secures long-term business in an ever-changing world.”
Phillips 66 and British Airways support government plans for a future SAF mandate and a business model for investing in advanced waste-to-SAF projects through participation in the Department for Transport’s Jet Zero Council Delivery Group, of which British Airways and Phillips 66 Ltd. are members.