DG Fuels, LLC (“DGF”), an emerging leader in cellulosic drop-in sustainable aviation fuel (“SAF”) production, signed a multi-year SAF offtake agreement with Air France KLM for up to 60,408 metric tons (21 million gallons) per year from DGF’s initial plant to be located in Louisiana. The contract is expected to make Air France KLM DGF’s largest European airline customer and lays the groundwork for expansion of this commercial relationship as DGF scales up production at the Louisiana and additional planned SAF production plants to be located in the United States and beyond. The minimum 10-year deal will reduce lifecycle emissions by up to 340,647 metric tons of carbon dioxide per year, beginning with the first expected SAF deliveries in 2026.
In total, the definitive offtake agreement covers up to 604,086 metric tons (210 million gallons) of SAF, resulting in life cycle emission reduction of up to 3,406,470 metric tons over the initial term of the agreement. DGF’s patented system design is expected to have a carbon intensity (CI) score or -39 grams per megajoule, which is 140% lower than conventional Jet A. DGF’s SAF formula also has a higher energy density than conventional Jet A, providing airline customers with operational advantages in addition to the environmental benefits.
DGF’s fuel production system relies entirely on cellulosic waste products like timber trimmings from the logging industry and renewable energy such as wind and solar. The DGF high carbon conversion efficiency fuel production strategy meets the highest RSB or ISSC standards of environmental fuel production. DGF’s cellulosic feedstock does not impair food supply and is essentially water neutral. Water electrolysis for green hydrogen supply is sourced mostly from byproduct water created by the rest of DGF’s fuel production process and powered by renewables.
“DG Fuels is committed to developing and supporting initiatives that provide practical and sustainable benefits to airlines around the world,” said Michael C. Darcy, Chief Executive Officer of DG Fuels. “We are proud to take this next long-term step alongside Air France KLM in supporting the lasting sustainability of our planet by reducing the impact of airline travel on the environment.”
“We have worked diligently with Air France KLM in implementing this long-term partnership,” said Christopher J. Chaput, President and CFO of DG Fuels. “With this agreement Air France and KLM now join DGF’s three other disclosed and undisclosed launch customers under binding agreements totaling over 130 million gallons per year.”
The project is being undertaken by bio-fuels industry leader Black & Veatch, which is performing feasibility, early engineering, and environmental permitting work as well as engineering, procurement and construction (EPC) execution.
About DG Fuels, LLC
DG Fuels is building a very low-CO2 life cycle emissions synthetic fuel system based on its patented high carbon conversion technology that is targeting a 97% efficiency. The DG Fuels technology directly addresses the issue of scale production to meet the environmental requirements of the aviation industry. The DG Fuels’ technology does not require the development of new engines or types of distribution infrastructure. DG Fuels’ innovative technology produces hydrogen with proven water electrolysis equipment from HydrogenPro, gravity battery power balancing equipment from Energy Vault and biomass carbon derived from timber and agricultural waste via TRI gasification technology. This system creates replacement fuel for aircraft, and potentially for locomotives, vessels and trucks as well.
DG Fuels delivers a significant value proposition to end-customers, including meaningful environmental benefits and the ability to materially address sustainability goals. If successful, DG Fuel’s carbon efficient solution will tie together all critical elements to power, fuel, and provide SAF to its customers.
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