Lufthansa Purchases $250m Of Sustainable Fuel Amid Demand Surge

Lufthansa has bought $250 million worth of Sustainable Aviation Fuel (SAF) over the next three years. In a statement on Thursday, the airline said it is seeing a growing interest in carbon-neutral travel, particularly from its corporate client business travelers.

Lufthansa Boeing 747-8 D-ABYG
German national airline Lufthansa has purchased $250 million worth of SAF over the next three years. Photo: Vincenzo Pace | Simple Flying

Investments spurring ramp-up

As business travel begins to bounce back, it would seem companies are keen to send employees on their way with a slightly greener conscience. German flag carrier Lufthansa reports seeing a growing demand for the use of sustainable fuels from its corporate clients.

The airline just recently signed a contract for a quarter of a million dollars worth of sustainable fuels over the next three years. This is the most significant investment into SAF from the Lufthansa Group to date and makes the carrier Europe’s largest sustainable fuel customer.

“Among our corporate customers, we are seeing increasing interest in using this genuine alternative to fossil aviation fuel. Every company that already invests in Sustainable Aviation Fuel spurs the market ramp-up and thus makes an important contribution on the way to CO2-neutral air transport,” Christina Foerster, Executive Board member responsible for Customer, IT & Corporate Responsibility, said in a statement Thursday.

Lufthansa flight
Lufthansa is the largest SAF customer of any European airline. Photo: Lufthansa

Preparing for EU blending mandate

Lufthansa’s purchase will not only make the carrier more appealing to environmentally conscious corporate clients. According to a broader climate plan published by the European Union this summer, airlines will have to blend at least 2% SAF into conventional jet fuel from 2025. If the plan is approved, this proportion will rise to 5% by 2030 – and 63% by 2050.

The German flag carrier has also signed a letter of intent with the Heide refinery for the future supply of promising Power-to-Liquid (PtL) technology fuels to Hamburg Airport. In order to facilitate PtL fuel production, Lufthansa participates in the HySupply initivate. Its goal is to establish a supply chain for green hydrogen, a crucial component for producing PtL fuels sustainably.

Lufthansa refueling
Lufthansa wants to make it possible for those paying a premium for SAF to be able to show it off. Photo: Lufthansa

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Personal eco-branding on the way?

Meanwhile, Lufthansa has plans to let those who opt for paying a premium to fly more sustainably show off their eco-aware choices. In an interview on November 13th with Bloomberg, Foerster said travelers would somehow be able to demonstrate their support for alternative fuels or offsets.

“We do think the eco-conscious traveler wants people to know that they’re an eco-conscious traveler. It needs to be chic to show off you’re flying green,” Foerster, who also serves as the airline’s Chief Customer Officer, told the media outlet.

The airline is reportedly considering things such as marking seats green or creating a badge that can be displayed on a smartphone. The question is whether or not it will generate incentives and motivation for those not already participating in such programs or instead foster quiet resentment and potentially counterproductive shaming?

What do you think about a visible ‘green stamp for travelers? Would it make a positive impact overall? Do you care about if people know that you are offsetting your flight or paying for SAF? Leave a comment below and share your thoughts.