British Airways Parent IAG Buys Record 28,000 Tonnes of Sustainable Aviation Fuel

International Airlines Group (IAG), the parent company of Aer Lingus, British Airways, Iberia, Vueling, and LEVEL, has announced an agreement with Madrid-based energy company Repsol for the purchase of over 28,000 tonnes of sustainable aviation fuel (SAF) over the next six months. This marks the largest-ever SAF purchase in Spain, supporting IAG’s decarbonization efforts and compliance with the EU’s new ReFuelEU law, which mandates a 2% SAF inclusion in aviation fuel by 2025.

The SAF will be used for flights departing from Spanish airports by Aer Lingus, British Airways, Iberia, Iberia Express, and Vueling. IAG has set ambitious sustainability targets, including flying with 10% SAF and using 1 million tonnes of SAF per year by 2030, and achieving net zero by 2050. The company has already secured a third of the SAF needed to meet its 2030 goal and has invested over $1 billion in SAF to date.

“Sustainability is a priority for IAG and is one of the pillars on which we base our strategy and transformation. We are working intensely to secure our future SAF needs and comply with our commitments, which are more ambitious than what is established by EU legislation. However, it is important that governments continue to support the development of a SAF industry that increases its availability and reduces its price,” said Luis Gallego, CEO of IAG.

This agreement coincides with Repsol’s recent start of production of 100% renewable fuels at its Cartagena facilities, the first large-scale plant in Spain and Portugal dedicated to renewable fuels. The plant, with a production capacity of 250,000 tonnes per year, produces renewable diesel and SAF from waste, representing a €250 million investment by Repsol.

“This agreement with IAG, one of the largest airline groups in the world, consolidates our commitment to 100% renewable fuels as a key lever for the decarbonization of transport in Spain. The aviation sector needs solutions such as sustainable aviation fuels and, at Repsol, we are prepared to supply them through our 100% renewable fuels plant in Cartagena,” said Josu Jon Imaz, CEO of Repsol.