Iberia and Vueling owner signs largest clean fuel deal in Spanish history with Repsol

IAG, owner of Iberia and Vueling, signed agreement with Repsol for the purchase and delivery over the next six months of more than 28,000 tons Sustainable Aviation Fuel (SAF), which represents the largest purchase of this product in Spain.

The fuel will be used in airline aircraft. IAG -Aer Lingus, British Airways, Iberia, Iberia Express and Vueling- that fly to Spanish airports. IAG is committed to decarbonising its operations and has set a target of using 2% SAF by 2025, as set by the ReFuelEU aviation regulation. Using SAF allows for a reduction in emissions of over 80% compared to traditional kerosene throughout its entire life cycle, from production to consumption.

This year, Repsol began producing 100% renewable fuels at its facilities in Cartagena (Murcia region). The plant, the first large-scale plant in Spain and Portugal dedicated exclusively to the production of 100% renewable fuels, in which Repsol invested 250 million euros, has a production capacity of 250,000 tons per year and can produce renewable diesel and SAF from waste.

IAG CEO Luis Gallego stressed in a press release that sustainability is one of the “pillars” of its strategy, but stressed the need for governments to “continue to support the creation of a SAF industry that increases its availability and reduces its price.” For his part, Repsol CEO Josu John Imaz said that this agreement with IAG cements its commitment to 100% renewable fuels as “a key lever for the decarbonization of transport in Spain.”

The two companies have been collaborating on decarbonization for several years. In 2021, Iberia operated the first flight in Spain powered by biofuel produced from waste. It was on the route between Madrid and Bilbao and used clean fuel produced at the Petronor refinery.

In addition, a year later, Iberia, in collaboration with Repsol, carried out its first long-haul flights on this biofuel from Madrid to Washington, San Francisco and Dallas. Iberia and Repsol are part of All4Zero, an industry-oriented technology innovation center focused on the development of decarbonization and circular economy technologies.

Also in 2021, Vueling operated its first flight with sustainable fuel, on the Barcelona-Seville route. In this case, with SAF produced in Repsol’s industrial centre in Tarragona from biomass. Last February, Vueling also operated a flight between Barcelona and the Andalusian city, coinciding with the Malaga Festival, in which half of the fuel used was SAF, provided by Repsol.

The multi-energy company’s goal is to reach a production capacity of up to 1.7 million tons of renewable fuel in 2027 and up to 2.7 million in 2030, thereby becoming the leader in this market on the Iberian Peninsula.