Shell to Increase SAF Procurement with 10-year Supply Deals

April 6, 2022 — Shell is preparing to sign letters of intent with airline carriers to begin sustainable aviation fuel (SAF) supply deals over the next decade. These commitments are key for Shell as the company begins increasing SAF procurement and production in the near future. Shell’s current strategy is to supply SAF that is purchased from other producers while they wait for their own facilities to begin production. Currently, the SAF will be procured from World Energy and Neste, and potentially other suppliers depending on the demand. Shell is seen as a channel into the market for SAF producers, so these contracts are mutually beneficial as the producers have to worry about production and not distribution. As far as Shell’s plan to produce SAF, the expectation is to begin producing in 2025 at refineries in the Netherland, Singapore, and Germany.

Details about Shell’s plans can be found here.

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