Delta signs 2-year, 10-million-gallon SAF agreement with Shell Aviation at LAX

Photo: Delta

Delta is making another multimillion-dollar commitment in sustainable aviation fuel (SAF) on its quest to scale what is widely considered the airline industry’s largest proven decarbonization lever.

Delta will purchase up to 10 million gallons of neat SAF from Shell Aviation over a two-year period for use at its hub at Los Angeles International Airport.

This will increase the global airline’s SAF commitments to over 200 million gallons—more than halfway to its goal of SAF comprising 10 percent of its fuel use annually by end of 2030 and well on its way to 35 percent SAF use by 2035.

Delta’s ambitions complement those of Shell, which aims to be a net-zero emissions energy business by 2050.

“There isn’t enough SAF available today to fuel the world’s commercial airlines for a single day,” said Pam Fletcher, Delta’s chief sustainability officer. “That’s why Delta continues creating demand signals like this arrangement with Shell—to show this major decarbonization lever is worth investing in and growing. We can have a huge impact in just a few years if stakeholders and government work together to provide the same level of investment and incentives currently available for the fuel that runs our cars.”

Delta’s LAX hub will receive the blended SAF thanks to California’s longstanding Low Carbon Fuel Standard policy that provides incentives for producers to provide SAF to the state.

Other states are now exploring similar SAF programs and tax incentives to complement federal policies that encourage the investment in and scaling of SAF.

“It’s brilliant to see Delta prioritize SAF, helping them to reduce lifecycle emissions while providing the demand that will help unlock further SAF production and scale supply,” said Jan Toschka, president of Shell Aviation. “This marks another important development for the future of sustainable aviation, as ambitious offtake agreements like this can hold the key to driving the airline industry’s transition toward a more sustainable future.”

Delta’s commitment to transparency across its business includes sustainability.

That’s why the agreement also includes Delta testing the tracking of Shell SAF delivery and its use data through Avelia, one of the world’s first blockchain-powered digital SAF solutions, launched by Shell Aviation and its partners last year.

This technology is expected to enable Delta to track SAF and environmental data with full transparency to reduce its emissions as well as that of its corporate SAF customers while avoiding issues such as double counting.