Air France-KLM invests $4.7m in DG Fuels SAF facility; expands offtake agreement

Air France-KLM Group announced $4.7m investment in DG Fuels’ Sustainable Aviation Fuel (SAF) production facility in Louisiana, US and acquired a new option to purchase up to 75,000 tons of additional SAF per year from 2029.

In October 2022, Air France-KLM announced an offtake agreement for 600,000 tons of SAF with DG Fuels, to be delivered between 2027 and 2036.

“Air France-KLM welcomes this expanded cooperation with DG Fuels. Supporting the scale-up of advanced waste-to-aviation fuel technology is a crucial step to growing the SAF industry. This is the first time Air France-KLM has made a financial investment in a SAF producer and we look forward to further reinforcing our long-term partnership with DG Fuels,” said Constance Thio, EVP human resources and sustainability, Air France-KLM.

Air France-KLM Group was the world’s largest SAF user in 2022 representing 17% of the world’s total SAF production.

“We are very pleased to broaden our strategic relationship with Air France-KLM. This expansion of our existing relationship is very important to both DG Fuels and to the aviation industry as we build momentum to successfully implementing our first SAF facility and make major scale up plans thereafter,” said Christopher Chaput, president & CFO, DG Fuels.

DG Fuels is developing a 3,000-acre SAF production facility in St. James Parish, Louisiana with the targeted production capacity of 120m SAF gallons per year on average.

The $3.1bn investment project will house DG Fuels’ system for utilizing renewable energy sources, such as agricultural and timber waste feedstock to produce SAF.