AirFrance-KLM invests in DG Fuels’ US sustainable fuel production plant

(Reuters) – French-Dutch airline AirFrance-KLM has made a $4.7 million investment in DG Fuels’ Sustainable Aviation Fuel (SAF) production plant in the U.S. state of Louisiana, a step towards its 10% SAF incorportation target for 2030.

“Air France-KLM acquired an option to purchase up to 25 million gallons / 75,000 tons of SAF annually over a multi-year period beginning in 2029,” the group said in a press release on Friday.

Sustainable aviation fuels, which use waste such as cooking oils and have either net-zero CO2 emissions or lower CO2 emissions than kerosene, a fossil fuel, are seen as an option to curb air travel’s carbon footprint.

The European Union has adopted rules requiring flights departing from EU airports to carry a progressively increasing amount of SAF, starting from 2% of total fuel in 2025.

(Reporting by Stéphanie Hamel; Editing by Kirsten Donovan)