Europe's Biggest SAF Deal Locks In 1.5 Million Tons

TotalEnergies and Air France-KLM have agreed to deliver 1.5 million tons of sustainable aviation fuel over ten years, ahead of incoming EU mandates

26 May 2026

TotalEnergies and Air France-KLM have signed a ten-year agreement to supply 1.5 million tonnes of sustainable aviation fuel (SAF) across European airports. The deal, an expansion of an existing commercial relationship, is among the largest volume commitments in the sector to date.

SAF is produced from waste materials and oily residues. Unlike conventional jet fuel, it can be used in existing aircraft engines without modification, making it a practical near-term option for airlines seeking to cut carbon emissions under tightening regulatory deadlines.

The scale matters for a specific reason. Producers require long-term volume guarantees before committing the capital needed to expand refining capacity. Without such contracts, investment in new SAF production plants stalls.

European carriers face a legally binding blending mandate under the ReFuelEU Aviation regulation, which requires a rising share of SAF in aircraft tanks at EU airports, starting at 2 per cent in 2025 and climbing to 70 per cent by 2050. Airlines that fall short face financial penalties.

Both parties stand to benefit from local distribution. Sourcing fuel closer to departure points reduces the indirect emissions tied to long-distance transport logistics, an increasingly scrutinised element of airline carbon accounting.

SAF currently costs several times more than conventional jet fuel. Industry analysts expect manufacturing costs to fall as production scales, though the timeline and pace of that decline remain contested. Long-term supply deals of this kind are seen by producers and carriers alike as a mechanism for managing price exposure in a market that has yet to mature.

No financial terms were disclosed.