VAXJO, Sweden, May 14, 2018 (Press Release) -Södra has signed a letter of intent with KLM to conduct a joint feasibility study to examine the possibility of producing green jet fuel. In parallel, Södra will become the first company in Sweden to join KLM’s Corporate Biofuel Programme, with the aim of supporting growth in demand for fossil-fuel-free alternatives in the aviation sector.
“Air travel accounts for some 2 percent of global CO₂ emissions. We are now taking two key steps forward to create sustainable alternatives to fossil-based jet fuel. The current supply of biofuel is too low and this is something we want to change,” said Maria Baldin, Director of Communications and Sustainability at Södra.
KLM’s Biofuel Programme enables companies to ensure that sustainable biojet fuel is used for their air travel by paying a surcharge that covers the difference in price between sustainable biofuel and regular jet fuel.
“Helping to reduce CO₂ emissions is in line with our sustainability targets. Our goal is to be fossil-fuel free by 2030. We will now shoulder an even greater responsibility for our air travel,” commented Maria Baldin.
“KLM is proud to offer Sweden’s most sustainable European air routes viewed over time. We are grateful to have local partners that want to play a part in this,” says Paul Terstegge, General Manager North Europe, Air France and KLM.
Letter of intent and development of biojet fuel
On Monday, a press conference was held at Växjö Småland Airport where a letter of intent covering the development of biojet fuel was signed. The collaboration aims to promote growth in supply and demand and development of the appropriate policy instruments for more sustainable air travel.
“The greatest challenge is the absence of policy measures. Since production costs for biojet fuel are high compared with fossil fuels, there is very limited scope for growth in demand, which is needed to reduce costs. There must be a clear political strategy to address this issue,” said Henrik Brodin, Strategic Business Developer, Energy, at Södra.
The collaboration contains a feasibility study to examine the prerequisites for producing biojet fuel from forest biomass. While Södra and KLM are the main partners in the collaboration, many other players are also participating.
“It’s about working together to examine the entire chain – from production to combustion – and creating a business model that enables a change in air travel,” says Henrik Brodin.
Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of more than 51,000 forest owners. We engage in modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. Net sales in 2017 were 20.5 SEK billion and there were 3,400 employees. Through value-generating relationships and a long-term approach, Södra is leading the way for the future of sustainable forestry.