HCS Group and Lufthansa Group sign LoI for SAF production and supply.
The hydrocarbon solutions company HCS Group has signed a Letter of Intent (LoI) with Lufthansa Group for the production and supply of Sustainable Aviation Fuel (SAF). With production starting in 2026, manufacturing will take place at the Speyer site, Germany, operated by Haltermann Carless. The production feedstock will be agricultural and forestry waste biomass and will be converted to SAF using the Alcohol-to-Jet refining technology.
“We are delighted to partner with the Lufthansa Group to accelerate the implementation of Sustainable Aviation Fuel. SAF is the most important way to de-fossilise aviation quickly and for decades to come,” said Henrik Krupper, CEO, HCS Group. “As part of our corporate strategy and as a perpetual pioneer in the area of high-value hydrocarbons we are proud to be able to offer portfolio change solutions for our valued customers.”
It is the first large scale biogenic project in Germany, with an expected initial volume of 60,000t per year. The strategic location on the Rhine river is near multiple aviation hubs and suitable for supplying European customers, ensuring compliance with Europe’s Renewable Energy Directive.
Katja Kleffmann, head of Fuel Management Supply, Lufthansa Group said: “We are very pleased to support SAF ‘Made in Germany’, produced near the Lufthansa Group’s main hub Frankfurt. Sustainable Aviation Fuels are a core element of our sustainability strategy. The LoI with HCS Group reflects our commitment to develop new SAF markets and to increase the availability of SAF – in this case in a logistically particularly favourable location close to the airport.”
Harald Dialer, chief commercial officer, HCS Group, adds: “We are strategically positioned to support the aviation industry to meet the ambitious carbon reduction objectives and the high standards of the EU’s Fit-for-55 and ReFuelEU Aviation targets.”
This LoI comes as part of $250m in investments Lufthansa Group has made to secure future SAF supply, making it one of the five largest SAF customers globally.