Microsoft and Worldwide Airways Group (IAG), the mum or dad firm of British Airways, Iberia, Vueling, Aer Lingus, LEVEL, IAG Loyalty, and IAG Cargo, have prolonged their groundbreaking Sustainable Aviation Gas (SAF) deal by 5 extra years. It goals to help Microsoft’s purpose to scale back Scope 3 lifecycle emissions from enterprise journey and air freight.
- Explaining additional, Microsoft will co-fund an extra 39,000 tonnes of SAF that can minimize 113,000 tonnes of lifecycle emissions.
The renewed agreement is an extension of their 2023 collaboration, when each firms pledged to help low-carbon aviation. For Microsoft, it’s an enormous step towards reaching its 2030 carbon-negative purpose.
Microsoft Targets Scope 3 Emissions with Main SAF Deal
Microsoft’s Scope 3 emissions rose by 30.9% in 2023 in comparison with its 2020 baseline. This enhance was primarily as a result of progress of its information heart operations and the {hardware} wanted to help them. Enterprise journey and air freight additionally stay main contributors.
- Total greenhouse gas (GHG) emissions have been 15.4 MtCO₂e in 2023, a 29.1% rise in comparison with the 2020 baseline.
- At present, over 96% of Microsoft’s whole emissions come from Scope 3.
The tech large is already boosting clear vitality use throughout its provide chain and investing in low-carbon applied sciences for hard-to-decarbonize industries, reminiscent of metal, concrete, and different constructing supplies utilized in its information facilities.
The corporate’s $1 billion Local weather Innovation Fund has already invested in LanzaJet, displaying the corporate’s sturdy dedication to supporting next-generation gas options and accelerating local weather know-how.
Thus, this deal is a big a part of Microsoft’s net-zero emissions pathway. It expects SAF use to make a notable influence on its air journey and freight shipments’ emissions.
SAF: A Key Step Towards Greener Flights, However Challenges Stay
Sustainable aviation fuel (SAF) is a cleaner various to conventional jet gas. Based on the ReFuelEU Aviation Regulation, SAF contains artificial fuels, biofuels made out of plant or waste supplies, and recycled carbon fuels and never fossil fuels.
Whereas it doesn’t minimize emissions from plane engines straight, it lowers general greenhouse gasoline (GHG) emissions when contemplating the total life cycle, i.e., from manufacturing to make use of.
- SAF reduces carbon emissions (on a greenhouse gasoline lifecycle foundation) usually by 80% or extra in contrast with the fossil jet fuels it replaces.
Nevertheless, there are nonetheless huge hurdles. Each IAG and Microsoft have acknowledged that scaling SAF manufacturing stays a problem, largely resulting from excessive prices. SAF continues to be 3 to 4 occasions dearer than conventional jet gas. Notably, a small proportion of airline gas at present is SAF. Its manufacturing and availability must develop a lot quicker to make an actual influence.
Consequently, the European Union launched the ReFuelEU Aviation Regulation. It’s additionally part of the Match for 55 plan that goals to chop emissions by 55% by 2030.
The regulation pushes gas suppliers at EU airports to step by step combine extra SAF into their gas blends. Finally, it could possibly make the shift towards extra sustainable flying simpler.
The SAF shall be sourced from two places:
- Phillips 66’s refinery in Humberside, UK, utilizing used cooking oil and meals waste.
- LanzaJet’s Freedom Pines Fuels facility in Georgia, USA, utilizing bioethanol.
Each SAF sources are ISCC-certified (Worldwide Sustainability & Carbon Certification). Moreover, the SAF used on this deal is not going to add new fossil carbon to the ambiance because it recycles present carbon.
How the Deal Advantages IAG and What are its Future Plans
Nevertheless, this SAF deal advantages each Microsoft and IAG. Whereas Microsoft can management its emissions from journey and freight, IAG can increase its SAF investments and decrease its direct flight emissions.
IAG airways observe carbon discount guidelines below the EU, UK, and Swiss Emissions Buying and selling Schemes. Additionally they help Corsia’s world plan to cap internet aviation emissions.
Emission Discount Targets
IAG goals to have net-zero emissions by 2050.
- By 2025, it plans to chop carbon emissions per passenger kilometer by 10%—from 87.3g in 2020 to 80g.
To achieve this, they’re including 142 new plane that burn as much as 25% much less gas. This additionally brings gas use down to only 3.17 liters per 100 passenger kilometers.
- By 2030, it intends to convey internet emissions all the way down to 22 million tonnes. That will be a 20% drop and can save 160 million tonnes of CO₂ over the last decade.
Boosting SAF Use
Notably, the sustainable gas from this settlement will energy flights throughout IAG’s manufacturers, together with British Airways. In 2021, it set a goal of utilizing a million tonnes of SAF yearly by 2030. At present, the airline makes use of SAF for 1.9% of its whole annual gas. The appropriate coverage help might minimize as a lot carbon as taking a million vehicles off the street yearly.
As of final December, the corporate had dedicated over $3.5 billion to SAF offtake offers. That is primarily based on anticipated vitality costs and contract phrases.
This deal reveals how firms can drive greener skies. By supporting cleaner fuels like SAF and influencing wider provide chains, Microsoft and IAG are taking the precise steps to struggle local weather change.
