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VARO and Lufthansa sign MoU for production and supply SAF

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Picture of Meenal Datar

Meenal Datar

Membership specialist

Energy supplier, VARO Energy and airline group, Lufthansa Group have announced the signing of a memorandum of understanding (MoU) to explore the production and supply of sustainable aviation fuel (SAF).

The MoU will see VARO and the Lufthansa Group leverage their long-standing partnership to drive forward the market and grow the use of SAF. Lufthansa could offtake large volumes of SAF from VARO as early as 2026. Both companies intend to scale innovative processes such as the production of hydrogen from biogenic feedstock, such as sewage sludge, and to classify it as green hydrogen in Germany. This green hydrogen could then be used to produce e-SAF.

The MoU also builds on the Lufthansa Group’s ambition to drive the availability, market ramp-up and use of SAF as a core element of its sustainability strategy. The Lufthansa Group is already one of the largest customers of SAF in Europe and is enabling their corporate customers to report their CO2 emission reductions by an audited certificate.

Dev Sanyal, CEO of VARO Energy, says: ‘Our ONE VARO Transformation strategy is centred on meeting the need of our customers to decarbonize as they progress in the energy transition while ensuring reliability of supply. This MoU builds on our long-standing partnership with the Lufthansa Group, one of the world’s largest airline groups, and I am excited to be working with them to accelerate the development and use of SAF – a key element of our biofuels strategic growth pillar.’

‘We believe in SAF being a powerful tool to make aviation more climate friendly and are therefore strongly engaged in SAF development and making it logistically available at airports. We are very happy about this latest engagement with VARO which supports our sustainability strategy,’ adds Katja Kleffmann, head of fuel management supply Lufthansa Group.

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