Loganair signs 15-year SAF offtake agreement
Loganair has signed a 15-year sustainable aviation fuel (SAF) offtake agreement with ClimaHtech Green Flight to secure future fuel supply and mitigate compliance costs under the UK government SAF mandate, with fuel deliveries scheduled to commence by 2029.
The agreement addresses long-term fuel price volatility and regulatory hedging exposure for the regional carrier. Under the terms of the deal, ClimaHtech Green Flight will supply Loganair with fuel produced via BioSAF (Power-Biomass-to-Liquid) and eSAF (Power-to-Liquid) pathways. The commercial value and specific volume metrics of the contract have not been disclosed.
The production infrastructure will be deployed across Loganair’s primary operational network in the Scottish Highlands, Islands, and regional UK routes, including Northern Ireland. This regional supply chain structure is designed to insulate the carrier from broader macro-economic supply chain disruption and high logistics costs by locating fuel production close to the point of consumption.
ClimaHtech Green Flight is currently advancing project development, regulatory engagement, and site selection. The production model uses a proprietary electrically driven platform capable of operating alongside intermittent renewable power assets and waste biomass feedstocks, lowering structural manufacturing costs.
“As the UK’s largest regional airline, Loganair plays a vital role in connecting communities across the UK, particularly in areas where aviation is a lifeline rather than a luxury,” said Luke Farajallah, chief executive of Loganair. “Decarbonising regional aviation is therefore both a responsibility and a practical challenge. This long-term agreement with ClimaHtech Green Flight is an important step in securing access to Sustainable Aviation Fuel that is produced closer to where we operate, supports UK supply chains, and reflects our commitment to lower our carbon footprint.”
Mel Courtney, chief executive of ClimaHtech Green Flight, said the deal “demonstrates strong airline confidence in our SAF pathways and our ambition to build a distributed, regional SAF production model”.
“The ClimaHtech electrically driven platform is more tolerant to intermittent renewable power supply thus enabling direct connection to renewable electricity assets. By combining this with highly efficient energy and biomass utilisation, we are bringing a scalable and resilient approach to SAF deployment,” he said.
The post Loganair signs 15-year SAF offtake agreement appeared first on Aviation Business News.