International Airlines Group (IAG), the parent company of airlines including Aer Lingus, British Airways, Iberia, Vueling and LEVEL, announced today an agreement with Madrid-based energy company Repsol for the purchase of more than 28,000 tonnes of sustainable aviation fuel (SAF) over the next six months.

The agreement marks the largest-ever SAF purchase in Spain to date, according to the companies. The SAF purchased under the agreement will be used for flights departing Spanish airports by Aer Lingus, British Airways, Iberia, Iberia Express and Vueling.

According to IAG, the purchase agreement will support its decarbonization goals, and the requirement under the EU’s new ReFuelEU law to reach 2% SAF in the aviation fuel mix in 2025. IAG has also set targets to fly with 10% SAF and use 1 million tonnes of SAF per year by 2030, and to reach net zero by 2050. IAG stated that it has already secured a third of the SAF required to meet its 2030 SAF goal, and has invested over $1 billion in SAF so far.

Luis Gallego, CEO of IAG, said:

“Sustainability is a priority for IAG and is one of the pillars on which we base our strategy and transformation. We are working intensely to secure our future SAF needs and comply with our commitments, which are more ambitious than what is established by EU legislation. However, it is important that governments continue to support the development of a SAF industry that increases its availability and reduces its price.”

The agreement follows the start of production by Repsol earlier this year of 100% renewable fuels at its facilities in Cartagena, the first large-scale plant in Spain and Portugal dedicated exclusively to producing renewable fuels. The plant has a production capacity of 250,000 tonnes per year and can produce renewable diesel and SAF from waste. Repsol has invested €250 million in the plant.

Josu Jon Imaz, CEO of Repsol, said:

“This agreement with IAG, one of the largest airline groups in the world, consolidates our commitment to 100% renewable fuels as a key lever for the decarbonization of transport in Spain. The aviation sector needs solutions such as sustainable aviation fuels and, at Repsol, we are prepared to supply them through our 100% renewable fuels plant in Cartagena.”