Lufthansa, HCS Group sign LOI to partner on production, supply of SAF made in Germany

Photo: Lufthansa Group

HCS Group and Lufthansa Group announced Aug. 1 that they have signed a letter of intent (LOI) on the production and supply of sustainable aviation fuel (SAF), planned to start in early 2026.

The SAF will be produced based on waste biomass from the agricultural and forestry sector at the HCS Group manufacturing site in Speyer, Germany, operated by Haltermann Carless.

SAF is a key element for more sustainable flying and thus for decarbonization in aviation.

“We are very pleased to support SAF made in Germany, produced near the Lufthansa Group’s main hub in Frankfurt,” said Katja Kleffmann, Lufthansa Group’s head of fuel-supply management. “Sustainable aviation fuels are a core element of our sustainability strategy. The LOI with HCS Group reflects our commitment to develop new SAF markets and to increase the availability of SAF—in this case in a logistically particularly favorable location close to the airport.”

Henrik Krüpper, CEO of HCS Group, said, “We are delighted to partner with the Lufthansa Group to accelerate the implementation of sustainable aviation fuel. SAF is the most important way to defossilize aviation quickly and for decades to come. As part of our corporate strategy, and as a perpetual pioneer in the area of high-value hydrocarbons, we are proud to be able to offer portfolio-change solutions for our valued customers.”

Harald Dialer, chief commercial officer at HCS Group, added, “We are strategically positioned to support the aviation industry to meet the ambitious carbon-reduction objectives and the high standards of the EU’s Fit-for-55 and ReFuelEU Aviation targets. Our SAF-investment project based on the innovative alcohol-to-jet (ATJ) technology allows us to become the first large-scale producer of biogenic SAF in Germany, with a market-relevant volume of 60,000 tons per year in the first step, and with certified supply chains from waste raw material to the tip of the wing. We are pleased that we have gained the Lufthansa Group as strong partner to introduce sustainable kerosene made in Germany.”

The LOI with HCS Group underpins the Lufthansa Group’s goal of driving forward the availability, market ramp-up and use of SAF as a core element of its sustainability strategy.

Today, the Lufthansa Group is one of the five largest SAF customers worldwide and is investing up to USD$250 million in the procurement of SAF for the coming years.

HCS Group’s corporate strategy is to provide sustainable hydrocarbon solutions to customers.

The manufacturing center in Speyer, Germany, operated by the Haltermann Carless brand, is strategically located in the geographical center of Europe, on the Rhine River and in the vicinity of major aviation hubs, offering excellent prerequisites for supplying customers in Europe with SAF, compliant with Europe’s Renewable Energy Directive (EU RED II Annex IX).

SAF is the generic term for all aviation fuels that are produced without the use of fossil feedstocks such as crude oil and also meet sustainability criteria.

There are various processes to produce SAF—both with biogenic and nonbiogenic feedstocks.

The current generation of SAF, which can save up to 80 percent CO2 compared to conventional kerosene, is mainly produced from biogenic residues, for example from waste-based biomass.

In the long term, SAF can enable virtually CO2-neutral aviation.