Cebu Pacific, Shell Aviation ink deal for sustainable aviation fuel supply

SINGAPORE — Gokongwei-led budget carrier Cebu Pacific on Tuesday signed an accord with Shell Aviation for the supply of sustainable aviation fuel (SAF) as part of the airline’s efforts for the decarbonization of the aviation industry.

Cebu Pacific and Shell Aviation sign a memorandum understanding on the supply of sustainable aviation fuel for the next five years as part of the airline’s efforts for the decarbonization of the aviation industry. pic.twitter.com/6IxhOOH987

— Ted Cordero (@Ted_Cordero) September 27, 2022

Under a memorandum of understanding signed by both parties, Shell Aviation will be supplying 25,000 metric tons of SAF to Cebu Pacific for a period of five years.

During the signing ceremony here, Cebu Pacific chief strategy officer Alex Reyes said use of SAF translates to “burning less fuel per flight, about 20%… so less carbon [goes] into the atmosphere.”

For his part, Shell Aviation president Jan Toschka said SAF “can [reduce] up to 80% of carbon.”

SAF is a “drop-in” replacement for fossil fuels, produced from renewable resources. The chemical and physical characteristics of SAF are almost identical to those of conventional jet fuel and these can be safely mixed with regular jet fuel to varying degrees.

SAF does not require any adaptations to the aircraft or engines, and does not have any negative impact on performance or maintenance.

However, Toschka said that SAF is two to eight times more expensive than conventional fuel.

“We need much more demand for the product to justify more investments,” Toschka said, noting that SAF accounted for less than 0.1% of total fuel sales in 2019.

Reyes said there are mechanisms in place to pass on the cost of SAF to customers.

“We try to reflect the operating economics to the passengers…up to the point that consumers are willing to pay,” the Cebu Pacific official said.

Reyes, however, clarified that Cebu Pacific still has “no firm plans yet, which specific flights will incorporate SAF.”

The first supply of SAF will be in 2026 and will be until 2031.—AOL, GMA News

This story was produced during the Philippine media's visit to Singapore sponsored by Cebu Pacific.