TotalEnergies and Air France KLM agree sustainable jet fuel deal

A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Vertou near Nantes, France, October 26, 2022. REUTERS/Stephane Mahe/File Photo

PARIS, Dec 5 (Reuters) - TotalEnergies (TTEF.PA) and Air France-KLM (AIRF.PA) have signed a memorandum of understanding for the supply of so-called sustainable aviation fuel (SAF) over a 10-year period starting in 2023, the companies said on Monday.

The fuel will be produced by TotalEnergies at its biorefineries, the statement said, adding that sustainable aviation fuel would allow savings of at least 80% of overall carbon emissions compared with conventional fossil fuels.

Under the deal, TotalEnergies will deliver more than one million cubic metres (mcm) or 800,000 tonnes of SAF, mainly for flights leaving from Air France-KLM's home countries France and the Netherlands.

In October the airline announced two binding contracts with Neste (NESTE.HE) and DG Fuels for a total volume of 1.6 million tonnes as it seeks to diversify suppliers to reach its target of cutting CO2 emissions by 30% from 2019 levels by 2030.

Reporting by Tassilo Hummel Editing by Sudip Kar-Gupta and David Goodman

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