- OMV and Air France-KLM committed to playing active role in reducing the aviation industry’s carbon footprint
- Memorandum of Understanding (MoU) enables Air France-KLM to purchase more than 300,000 metric tons of SAF from OMV by 2030
OMV the integrated energy, fuels & feedstock and chemicals & materials company headquartered in Vienna today announced that it has signed an offtake agreement to supply 2,000 metric tons of Sustainable Aviation Fuel (SAF) to the Air France-KLM Group in 2023.
This offtake agreement follows an existing MoU, granting Air France-KLM access to purchase more than 300,000 metric tons of SAF from OMV by 2030.
OMV is implementing numerous measures to achieve its ambitious strategic sustainability goals, and SAF is an essential contributor to this transformation. Based on the strategic outlook for the aviation sector, it is OMV’s ambition to become a regional leader in SAF supply, making use of the advantageous infrastructure in place. This portfolio upgrade is in line with OMV’s commitment to become a net-zero company latest 2050 (for Scope 1, 2 and 3).
Furthermore, the European Parliament recently passed a new law to increase the uptake of sustainable fuels in the aviation sector. EU airports and fuels suppliers must ensure that, starting from 2025, at least 2 % of aviation fuels will be “green”, with this share increasing every five years. In addition, there will be an EU label for the environmental performance of flights as of 20251.
Martijn van Koten, OMV Executive Vice President Fuels & Feedstock: “This offtake agreement is a great opportunity to accelerate the sustainability efforts of both companies. Sustainable aviation fuel significantly reduces CO2 emissions, and we are delighted to make progress together with strong partners like Air France-KLM and to provide solutions for the sustainable development of the aviation industry.”
Fatima Da Gloria De Sousa, Vice President Sustainability, Air France-KLM stated: “Air France-KLM is glad to partner with OMV to increase our SAF uptake and contribute to the emerging SAF industry. We aim to be at the forefront of sustainable aviation, and this translates into ambitious, tangible targets. By 2030, we aim to incorporate at least 10% of SAF in all our flights, which goes beyond the mandates set by the European Union. We have already secured 3 out of those 10%, and we are actively building a worldwide network of SAF providers.”
Sustainable Aviation Fuel is produced by OMV by co-processing sustainable and regional raw materials, specifically used cooking oil, at its Schwechat refinery in Austria. Compared to conventional jet fuel, Sustainable Aviation Fuel contributes to a reduction of greenhouse gas emissions by more than 80% over the entire life cycle.
Air France-KLM has implemented a strict sourcing policy and is committed to purchasing only SAF that do not compete with food or feed, are RSB (Roundtable on Sustainable Biomaterials) or ISCC (International Sustainability & Carbon Certification) certified for their sustainability and are not produced from palm oil. SAF projects selected by Air France-KLM reduce CO2 emissions by a minimum of 75% compared with conventional jet fuel on a lifecycle basis and require no engine modifications.
With Group sales revenues of EUR 62 bn and a workforce of around 22,300 employees in 2022, OMV is amongst Austria’s largest listed industrial companies.
In Chemicals & Materials, OMV through its subsidiary Borealis, is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals and plastics recycling. Together with its two major joint ventures – Borouge (with ADNOC, in the UAE and Singapore) and Baystar™ (with TotalEnergies, in the USA) – Borealis supplies products and services to customers across the globe. OMV’s Fuels & Feedstock business produces and markets fuels as well as feedstock for the chemical industry, operates three refineries in Europe, and holds a 15% stake in a refining joint venture in the UAE. OMV operates around 1,700 filling stations in eight European countries. In the Energy segment, OMV explores and produces oil and gas in the four core regions of Central and Eastern Europe, Middle East and Africa, North Sea, and Asia-Pacific. Average daily production in 2022 amounted to 392 kboe/d. Its activities also include the Low Carbon Business as well as the entire gas business.
OMV intends to transition from an integrated oil, gas, and chemicals company to become a leading provider of innovative and sustainable fuels, chemicals, and materials, while taking a leading global role in the circular economy. By switching over to a low-carbon business, OMV is striving to achieve net zero in all three Scopes by 2050 at the latest.
OMV shares are traded on the Vienna Stock Exchange (OMV) and as American Depository Receipts (OMVKY) in the U.S.