Cepsa and Etihad Sign MoU to Accelerate Decarbonisation of Air Transport

Strategic Insights -

Cepsa and Etihad have announced a memorandum of understanding (MoU) to accelerate the decarbonisation of air transport through the research and production of sustainable aviation fuels (SAF). Both companies aim to reduce the carbon footprint of air transport and contribute to the goals of the UN's 2030 Agenda for Sustainable Development and the fight against climate change. The partnership will also focus on developing new energy alternatives such as renewable hydrogen and the electrification of Etihad's ground fleets.

Key Takeaways:

  • Cepsa and Etihad will work together to produce SAF from circular raw materials, reducing aircraft emissions by up to 80 percent compared to conventional kerosene.
  • The partnership supports the European Commission's Fit for 55 package, which aims to boost the supply and demand of aviation biofuels in the European Union to 2 percent use by 2025, 5 percent by 2030, and 63 percent by 2050.
  • Cepsa aspires to become a leader in the clean energy sector and spearhead the decarbonisation of air transport, with a target to produce 2.5 million tonnes of biofuels annually by 2030, including 800,000 tonnes of SAF.
  • Etihad runs the most comprehensive cross-organisational aviation sustainability initiative, including partnerships with major companies and collaborations with pioneering new-technology organisations and academic researchers.
  • Cepsa has established an ambitious roadmap to cut its emissions, aiming to reduce its Scope 1 and 2 CO2 emissions by 55 percent and the carbon intensity index of its energy products sales by 15-20 percent by 2030.

Statistics:

  • Up to 80 percent reduction in aircraft emissions using sustainable aviation fuels (SAF)
  • 2 percent, 5 percent, and 63 percent use of aviation biofuels in the European Union by 2025, 2030, and 2050, respectively (European Commission's Fit for 55 package)
  • 2.5 million tonnes of biofuels to be produced annually by Cepsa by 2030
  • 800,000 tonnes of SAF to be produced annually by Cepsa by 2030
  • 55 percent reduction in Cepsa's Scope 1 and 2 CO2 emissions by 2030
  • 15-20 percent reduction in the carbon intensity index of Cepsa's energy products sales by 2030

Sources:

  • WAM (2nd November, 2022)
  • European Commission (Fit for 55 package)
  • Cepsa's Positive Motion strategic plan
  • Etihad's sustainability initiative