Lufthansa, Ryanair Sign Sustainable Fuel Deals Ahead of EU Mandate

The Lufthansa Group and Ryanair have signed significant new sustainable aviation fuel agreements ahead of an expected EU mandate aimed at boosting demand for the fuels.

Both airlines will take sustainable aviation fuel supplies from Austrian-based OMV beginning in 2023. Lufthansa has signed for 211 million gallons (800,000 metric tonnes) over seven years through 2030, and Ryanair for 53 million gallons over eight years. OMV will supply the carriers in Austria, Germany, and Romania. Both airlines cited their targets of net-zero carbon emissions by 2050 for the new sustainable fuel deals.

The EU is preparing to implement new sustainable aviation fuel mandates next year. If finalized under the proposed ReFuelEU standards, 2 percent of all aviation fuel in the bloc would need to be sustainable — or generate at least half the carbon emissions of standard jet fuel — by 2025, and 6 percent by 2030.

Both Lufthansa and Ryanair, however, will need to do more to meet the EU’s proposed sustainable fuel targets. The former used roughly 2.9 billion gallons of jet fuel in 2019; the new OMV supply deal represents just 1 percent of that fuel usage on an annual basis.