Loganair signs 15-year SAF supply deal with ClimaHtech Green Flight ahead of UK mandate

UK regional carrier Loganair has signed a 15-year sustainable aviation fuel offtake agreement with ClimaHtech Green Flight, securing future fuel supply and hedging against compliance costs under the UK government's SAF mandate, with deliveries scheduled to begin by 2029.

According to Aviation Business News, the agreement will see ClimaHtech Green Flight supply Loganair with fuel produced via BioSAF (Power-Biomass-to-Liquid) and eSAF (Power-to-Liquid) pathways. The commercial value and volume metrics of the contract have not been disclosed.

Production infrastructure will be deployed across Loganair's primary operational network in the Scottish Highlands, Islands and regional UK routes, including Northern Ireland. The regional supply chain structure is designed to reduce exposure to macro-economic disruption and logistics costs by locating fuel production close to the point of consumption.

Luke Farajallah, chief executive of Loganair, said decarbonising regional aviation was 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," he said.

Mel Courtney, chief executive of ClimaHtech Green Flight, said the deal demonstrated strong airline confidence in the company's SAF pathways. He described the company's electrically driven production platform as more tolerant to intermittent renewable power supply, enabling direct connection to renewable electricity assets and combining efficient energy and biomass utilisation for a scalable approach to SAF deployment.

ClimaHtech Green Flight is currently advancing project development, regulatory engagement and site selection. Its production model uses a proprietary electrically driven platform capable of operating alongside intermittent renewable power assets and waste biomass feedstocks.

Read the full agreement details and ClimaHtech Green Flight's production model in the full report.