Icelandair aims to cut carbon emissions by 10% with the use of a new version of sustainable aviation fuel from 2028.
The carrier has agreed the supply of up to 45,000 tonnes of SAF at its Keflavík airport base, starting in five years’ time.
The initial stage will see a specialist firm produce carbon-neutral e-fuel to be blended with conventional jet fuel for use by the current fleet for certifiable emission reductions.
Most sustainable aviation fuel comes from bio-based resources, but synthetic e-fuels are produced from green hydrogen and recycled CO2.
By recycling CO2, its amount in the atmosphere remains the same but does not increase as is the case when burning fossil fuels, according to the airline.
Icelandair has set ambitious targets to reduce carbon emissions by 50% per operational ton kilometre by 2030 compared to 2019 and reach net zero emissions by 2050.
Chief executive Bogi Nils Bogason said: “Entering into this memorandum of understanding, shows that we want to pull our weight to support pioneers that are working on the development of sustainable aviation fuels in Iceland.
“We have set ambitious goals to reduce carbon emissions and have already invested significantly in fleet renewal which is currently the most effective measure to reduce emissions.
“It is, however, going to be the utilisation of sustainable aviation fuels that will play an important role on this journey in international aviation over the next years.
“The challenge is that there is not enough production in the world today and therefore not enough supply. We believe there are great opportunities for Iceland to start such production.”