SAS and Preem Sign Memorandum of Understanding for Renewable Jet Fuel
Airline SAS and energy company Preem have signed a memorandum of understanding regarding the production of renewable jet fuel. The goal is to replace the volume of fuel used for domestic flights with biofuels by 2030.
Scandinavian airline SAS and Swedish energy company Preem have entered into a memorandum of understanding to establish production capabilities for renewable jet fuel. The collaboration aims to secure biojet capacity in conjunction with Preem's planned expansion of its refinery in Gothenburg. Initial production is tentatively scheduled to commence in 2022.
SAS has set a target to replace all fuel used for domestic flights with biofuels by 2030, as part of its strategy to reduce climate-impacting emissions and become a leader in sustainable aviation. The company aims to significantly lower its environmental footprint.
Preem intends to expand its refinery's capacity, with an estimated total biofuel production capability exceeding one million cubic meters, a portion of which is earmarked for aviation fuel. Preem's strategy includes developing biofuels from forestry and societal byproducts.
A binding agreement detailing the collaboration is expected to be finalized by September 2018. Should the partnership progress successfully, SAS and Preem plan to negotiate long-term supply contracts for the renewable jet fuel.