News Roundup October 2025

The EU has allocated the first tranche of free EU ETS emission allowances to airlines for the use of SAF. Starting in 2024 and ending in 2030, 20 million allowances, worth around €1.5 billion (at an allowance price of €75), have been set aside for this purpose. For the first year of application, 2024, around 1.3 million allowances, worth approximately €100 million, have been distributed between 53 operators. The support system covers all or part of the price difference between fossil kerosene and the eligible SAF used by individual commercial aircraft operators on their flights. This support comes on top of the EU ETS incentive for operators using SAF not being required to surrender allowances for the use of these fuels, an advantage the European Commission says was worth €25 million in 2024.

In collaboration with Shell and Portland International Airport (PDX), Delta Air Lines has taken delivery of more than 400,000 gallons of blended SAF produced by Montana Renewables, marking the first commercial-scale SAF uplift at PDX. The waste-derived feedstock from Montana was supplied by Shell to Zenith Terminal in Portland where it was blended with traditional jet fuel and delivered to PDX via barge, truck and pipeline. The blended SAF entered the airport’s privately-owned fuel supply system in early September. The PDX delivery is part of the airline’s broader SAF strategy, which includes previous deliveries to its hubs at Minneapolis-St Paul and Detroit.

US ethanol-to-jet (EtJ) technology specialist Gevo is to partner with European-based renewable energy company Haush to explore developing ethanol and EtJ facilities and business opportunities in Europe, with potential production locations in Portugal, Germany and the United Kingdom. Should both parties determine the right business opportunity exists, the agreement is expected to be a precursor to a full joint venture. They will explore options for ethanol sourcing and SAF plant development for the purpose of producing and selling SAF in Europe, with the goal of targeting for consideration projects that deliver ReFuelEU-compliant SAF. Haush will take the lead on European activities, including the identification of specific site locations, management of the application to the European Innovation Council Accelerator programme, the identification of prospective investors and development of relationships with selected fuel suppliers and blenders.

Air India Group is rolling out SITA OptiFlight’s climb optimisation solution OptiClimb and SITA eWAS data-driven solutions for flight optimisation as part of a strategy by the airline to improve sustainability and operational performance. The technology is now active across the Air India A320 fleet and the Air India Express Boeing 737 fleet, covering both domestic and international routes. Deployment on Air India’s widebody fleet will be rolled out subsequently. The tools are expected to help cut carbon emissions by 35,000 tons annually across the Air India fleet.

The EU’s Clean Aviation Joint Undertaking has selected aircraft manufacturer ATR to lead two ground-breaking initiatives on low-emissions regional aviation. As part of Clean Aviation’s Ultra-Efficient Regional Aircraft thrust, ATR will spearhead development projects aimed at demonstrating the integration of hybrid-electric propulsion, advanced propeller systems and electrified aircraft systems on a regional aircraft. By 2030, ATR expects to achieve the first-ever hybrid-electric aircraft using an ATR 72-600 test bed. ATR’s flagship project HERACLES (Hybrid-Electric Regional Aircraft Concept for Low EmissionS) will define an ultra-efficient regional aircraft concept integrating hybrid-electric propulsion, high-performance batteries and a thermal engine compatible with 100% SAF. These technologies will be flight-tested through DEMETRA (Demonstrator of an Electrified Modern Efficient Transport Regional Aircraft), using an ATR 72-600 flying test bed.

France-based biomass conversion technology company Axens has started up a 100% SAF unit in Asia with the capacity to entirely convert renewable feedstock into SAF through a two-stage process involving the Axens Vegan unit that allows production of either 100% renewable diesel or 100% SAF. The company says the 100% SAF mode can be achieved without the need for an additional hydrocracking stage.

With the support of SMBC Group, Pegasus Airlines has converted three Japanese Operating Lease with Call Options (JOLCO) transactions into a Sustainability-Linked Loan (SLL) structure. The financing incorporates environmental and social KPIs across both the loan and equity components and supports the delivery of three Airbus A321neo aircraft. To facilitate the SLL conversion in line with market best practices, Pegasus implemented its inaugural Sustainability-Linked Financing Framework, developed with the support of SMBC as sole Sustainability Advisor in early 2025. It features KPIs focused on carbon intensity and gender diversity, each paired with Sustainability Performance Targets. The financing terms of the JOLCOs are tied to the airline’s sustainability performance against the KPIs.

Sustainable energy company Moeve has joined forces with other members of the Global Impact Coalition to advance a new methanol-based pathway to e-SAF and low-carbon chemicals in Europe. Starting with a feasibility study, the companies have formalised a dedicated spin-off structure to accelerate the development of a pathway based on Methanol-to-Olefins technology. The process enables the conversion of e-methanol into e-SAF through the production of sustainable olefins. The study is set to run until late 2026 and will assess the technical and economic potential of building a first-of-its-kind sustainable olefins production facility in Europe. The global green methanol market is set to triple by 2030, says Moeve.