Avfuel, Neste extend sustainable aviation fuel supply agreement

Photo: Avfuel Corp.

Avfuel Corp. announced March 12 that it has finalized a partnership extension with Neste Corp. for sustainable aviation fuel (SAF) supply for business aviation.

The agreement extends the companies’ partnership in 2024 and sets the framework until December 2027, continuing their work on enhancing access to Neste MY Sustainable Aviation Fuel for business aviators, from corporate flight departments and fixed-base operators (FBOs) to major original equipment manufacturers (OEMs).

Since the inception of the partnership in 2021, Avfuel’s uptake of SAF has experienced exponential growth, tripling each year.

In line with this trend, Avfuel will triple its offtake from Neste again in 2024 and expects this trajectory to persist in the years to come.

The new agreement with Neste will accommodate this rapid growth, ensuring a stable, sustainable supply chain for Avfuel and its fuel-consuming customers.

The supply-agreement extension comes at a pivotal moment as Neste began supplying SAF out of its terminal capacity in Los Angeles earlier this month.

This new terminal location enhances access to SAF in terms of both volume and geography, bolstering Avfuel’s ability to supply the sustainable option across the Western United States.

Avfuel will source SAF from both of Neste’s terminals in Northern and Southern California, expanding supply to new markets and states.

“We are proud to not only continue our partnership with Neste, but also immensely grow its scope with greater product access,” said Keith Sawyer, Avfuel’s manager of alternative fuels. “This agreement underscores our mutual commitment to reducing emissions and advancing the adoption of ecofriendly solutions in aviation.”

Alexander Kueper, vice president of renewable aviation at Neste, added, “We are proud to extend our partnership with Avfuel and enable its customers to reduce the emissions from their air travel by using Neste MY Sustainable Aviation Fuel. Neste is fully committed to supporting the aviation industry in reducing greenhouse-gas emissions by working closely together with partners like Avfuel, and we look forward to continuing to work together as we expand our SAF production and supply capabilities.”