SAF One Energy Management Ltd., a developer of sustainable aviation fuel (SAF) solutions, announced on February 11 that it has signed a Memorandum of Understanding (MOU) with Airbus to collaborate on driving SAF adoption across the aviation industry.

Under the agreement, the two companies will work together to promote SAF adoption in the United Arab Emirates and globally through various initiatives.

The focus of the partnership is to support the aviation industry’s decarbonization goals by increasing SAF utilization.

Japanese airline Pegasus Airlines said it has signed an agreement with ENEOS Corporation for the purchase of SAF in Japan.

From February 4, 2025 to the end of March 2025, a certain amount of SAF derived from waste cooking oil will be blended into aviation fuel and supplied to flights from Haneda to Naha.

“We are committed to achieving net zero CO2 emissions by 2050. As part of this commitment, we have set a goal to replace 10% of the aviation fuel we use with SAF by 2030. This is our first step in sourcing SAF and an important milestone in achieving this goal,” the airline said.

“We will continue to drive initiatives such as the introduction of lower greenhouse gas emitting aircraft and the increased use of SAF. Through our mission to provide safe, reliable and high-quality air service to all at affordable prices, we aim to contribute to the sustainable development of society and make air travel accessible to everyone.”

The U.S. Department of Energy said on Tuesday it had approved the issuance of a loan guarantee to Calumet Corp (CLMT.O) that was finalized before Trump took office, according to Reuters news.

The renewable energy refinery in Great Falls, Montana, comes online at the end of 2022 and will produce about 140 million gallons of biofuels a year. The loan will help expand its capacity to 315 million gallons per year and make it one of the major SAF (sustainable aviation fuel) suppliers in North America. The fuel is made from seed oils and tallow fats and has lower greenhouse gas emissions than traditional jet fuel.

Although the DOE approved the loan disbursement, a full review of all funding, including grants and loans, is still underway to ensure that all activities are in compliance with the law and in line with President Trump’s executive orders and policy priorities, a spokeswoman said.

The Royal Australian Air Force (RAAF) has initiated a 12-month pilot program utilizing Sustainable Aviation Fuel (SAF) at RAAF Base East Sale in Victoria. This program represents a significant step in the Australian Defence Force’s (ADF) commitment to strengthening energy resilience and advancing climate mitigation strategies, as outlined in the Defence Strategy 2024.

The initiative aligns with the Department of Defence’s broader strategy to transition toward low-carbon energy sources while ensuring military readiness, operational capability, and seamless interoperability with allied forces. By integrating SAF into its fuel supply chain, the ADF aims to reduce carbon emissions without compromising national security or mission effectiveness.

The program is a key component of the Net Zero and Future Energy Strategies, which outline viable pathways for decarbonizing defence operations and accelerating the transition to cleaner energy solutions. SAF, derived from renewable sources such as used cooking oil and agricultural residues, offers a practical alternative to conventional jet fuel while significantly lowering greenhouse gas emissions.

Beyond environmental benefits, the adoption of SAF is also driven by energy security priorities. Establishing a domestic renewable fuels industry enhances Australia’s energy independence, reducing reliance on imported fuels and strengthening national resilience.

The pilot program at RAAF Base East Sale marks an important milestone in the ADF’s journey toward sustainable defence operations, supporting both national security and Australia’s commitment to global climate action. If successful, the program could pave the way for broader adoption of SAF across the ADF, reinforcing its role as a leader in sustainable military aviation.

Moeve and Norwegian Air have signed an agreement to accelerate the decarbonization of air travel between Spain and the Nordic region by promoting the use of Sustainable Aviation Fuel (SAF). Under this contract, Norwegian Air will utilize SAF supplied by Moeve for flights departing from Las Palmas Airport in Spain to Nordic destinations, primarily Norway and Sweden, as well as Denmark, during November and December 2024.

Moeve produces SAF from waste cooking oil at its La Rábida Energy Park in Huelva, Spain. To ensure a stable SAF supply, the company is collaborating with partners to construct a new production facility with a flexible capacity of 500,000 metric tons of SAF and renewable diesel. The plant, part of the largest second-generation biofuel complex in Southern Europe, is expected to commence operations in 2026.

With this expansion, Moeve is set to become the leading producer of second-generation (2G) biofuels in Spain and Portugal, targeting an annual production of 2.5 million metric tons of biofuels by 2030. Of this, 800,000 metric tons will be SAF, sufficient to power approximately 2,000 flights worldwide.

The partnership between Moeve and Norwegian Air aligns with the European Commission’s ‘Fit for 55’ initiative, particularly the ‘RefuelEU Aviation’ policy, which aims to increase the use of aviation biofuels in the EU to 2%. Globally, the aviation industry is striving for a 100% carbon reduction goal by 2025, a 6% reduction by 2030, and a 70% reduction by 2050.

The European Commission adopted a Delegated Regulation on February 6 aimed at accelerating the use of sustainable aviation fuels (SAFs) and establishing and financing the relevant support systems for this purpose. The regulation was introduced to implement the economy-wide target set out in the European Climate Act to reduce net greenhouse gas (GHG) emissions by at least 55% by 2030 (compared to 1990 levels).

In addition to carbon pricing, the EU Emissions Trading System (ETS) has established an “Innovation Fund” aimed at supporting innovation in clean technology projects, such as in the aviation sector, to reduce their climate impact. Through this fund, the EU provides specific support to bridge the cost gap in the use of alternative fuels.

Under the revised 2023 EU ETS Directive, the EU provides a support mechanism for the use of eligible aviation fuels. In order to incentivize the early adoption of alternative fuels with high emission reduction potential, the EU has decided to set aside 20 million EU ETS quotas on January 1, 2024, which are expected to be worth approximately €1.6 billion. These quotas are used to cover the remaining price difference between fossil kerosene and eligible aviation fuels used by airlines on their flights. This ensures a level playing field and all airlines operating the relevant routes will be treated equally.

To facilitate the implementation of the support mechanism, the Commission has formulated annual calculation rules to clarify the method of accounting for the price difference between eligible aviation fuel and fossil kerosene. The calculation will take into account the price of carbon, the Harmonized Minimum Tax Incentive (HMTI) and the corresponding quota allocation rules.

The next steps are that airlines will be required to report their use of these fuels by March 31, 2025, and the Commission will issue a public notice of fuel price differences by May 31st. Ultimately, the Commission would have until August 31 to determine the quota allocations for each airline applying for the support mechanism.

The authorization bill is currently before the European Parliament and the Council of the European Union for consideration, and if neither raises objections within two months, the bill will be published in the Official Journal and enter into force.