Lufthansa Group has signed a memorandum of understanding (MoU) with energy company Varo to receive ‘large volumes’ of sustainable aviation fuel (SAF), likely at its Munich hub, from 2026.
The agreement expands an existing partnership between the two companies on the production and supply of SAF, which includes advancing production of green hydrogen from biogenic waste materials.
In a statement the airline group said the agreement underpins its goal of “driving forward the availability, market ramp-up and use” of SAF as it “continuously reviews” options for long-term SAF purchase agreements.
Varo added that it aims to produce around 260,000 tons of SAF per year starting from 2026.
The move follows a similar SAF agreement with energy firm Shell as Lufthansa Group aims to halve its net carbon emissions by 2030, compared to 2019 levels, and to achieve net zero by 2050.