Etihad Airways is forging a new partnership with Spanish energy company Cepsa to develop and produce sustainable aviation fuels (SAF), as well as working on technologies such as hydrogen and electrification.
The memorandum of understanding (MOU) between the companies includes the production of SAF from materials such as cooking oils, non-food animal waste or biodegradable waste. The use of SAF, which can cut aircraft emissions by up to 80 per cent compared with traditional jet fuel, forms a key part of Etihad’s decarbonisation strategy.
The Abu Dhabi-based airline will also work with Cepsa on alternative engine technology, such as renewable hydrogen, and using electric-powered vehicles for its ground operations.
Adam Boukadida, chief financial officer of Etihad Aviation Group, said: “Aviation decarbonisation is the biggest challenge facing our industry and the development of commercially viable sustainable aviation fuel is a key requirement to meet the industry sustainability target.
“Our MOU with Cepsa allows us to tackle the first challenge, building demand for SAF, which in turn encourages further production and increases availability to eventually lower costs and enable further SAF uptake from the wider industry.
“It’s a snowball effect, which is essential if we’re to overcome the main challenges standing in the way to a commercially viable solution.”
The preliminary agreement between Etihad and Cepsa is in line with the European Commission’s Fit for 55 package, which includes the RefuelEU Aviation initiative designed to boost the supply and demand for aviation biofuels to the EU over the next 30 years.