Lufthansa Group and HCS Group Sign LOI To Partner on the Production and Supply of Sustainable Aviation Fuel “Made In Germany"

Aug. 1, 2023
The long-term cooperation on sustainable aviation fuel (SAF) could enable Lufthansa Group and HCS Group to reduce carbon emissions in aviation as of early 2026.

HCS Group and Lufthansa Group have signed a letter of intent on the production and supply of sustainable aviation fuel (SAF), planned to start in early 2026. The SAF will be produced based on waste biomass from the agricultural and forestry sector at the HCS Group manufacturing site in Speyer, Germany, operated by Haltermann Carless. SAF is a key element for more sustainable flying and thus for decarbonization in aviation.

Katja Kleffmann, head of Fuel Management Supply Lufthansa Group: “We are very pleased to support SAF ‘Made in Germany,’ produced near the Lufthansa Group’s main hub Frankfurt. Sustainable Aviation Fuels are a core element of our sustainability strategy. The LoI with HCS Group reflects our commitment to develop new SAF markets and to increase the availability of SAF – in this case in a logistically particularly favorable location close to the airport."

Henrik Krüpper, chief executive officer, HCS Group, said, “We are delighted to partner with the Lufthansa Group to accelerate the implementation of Sustainable Aviation Fuel. SAF is the most important way to defossilise aviation quickly and for decades to come. As part of our corporate strategy and as a perpetual pioneer in the area of high-value hydrocarbons we are proud to be able to offer portfolio change solutions for our valued customers.”    

Dr. Harald Dialer, chief commercial officer, HCS Group said, “We are strategically positioned to support the aviation industry to meet the ambitious carbon reduction objectives and the high standards of the EU’s Fit-for-55 and ReFuelEU Aviation targets. Our SAF investment project based on the innovative Alcohol-to-Jet (AtJ) technology allows us to become the first large-scale producer of biogenic SAF in Germany, with a market-relevant volume of 60,000 tons per year in the first step, and with certified supply chains from waste raw material to the tip-of-the-wing. We are pleased that we have gained the Lufthansa Group as strong partner to introduce sustainable kerosene ‘Made in Germany.'"

Clear Strategies for a Sustainable Future

The LoI with HCS Group underpins the Lufthansa Group's goal of driving forward the availability, market ramp-up and use of Sustainable Aviation Fuels as a core element of its sustainability strategy. Today, the Lufthansa Group is one of the five largest SAF customers worldwide and is investing up to USD 250 million in the procurement of SAF for the coming years    

HCS Group’s corporate strategy is to provide sustainable hydrocarbon solutions to customers. The manufacturing center in Speyer, Germany, operated by the Haltermann Carless brand, is strategically located in the geographical center of Europe, on the Rhine river and in the vicinity of major aviation hubs, offering excellent prerequisites for supplying customers in Europe with SAF, compliant with Europe’s Renewable Energy Directive (EU RED II Annex IX).