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Technip Energies Taps Airbus, Safran for Large-scale Sustainable Aviation Fuel Production

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Technip Energies Taps Airbus, Safran for Large-scale Sustainable Aviation Fuel Production

Engineering group Technip Energies (TE.PA) said Tuesday it signed an agreement with industry partners to launch a joint venture to build a large-scale sustainable aviation fuel production facility in France.

The new entity, named Rebound, will be formed in partnership with aerospace group Airbus (AIR.PA, AIR.F), aviation and defense company Safran (SAF.PA) and agricultural processor Tereos. The joint venture's facility at the Port of Dunkirk will target an annual capacity of 160,000 tons of sustainable aviation fuel, making it one of the largest production sites of its kind in Europe.

Under the terms of the deal, the parties agree to fund the project's development phase, including engineering studies and other requirements needed to evaluate a final investment decision. Completion of the joint venture remains subject to standard closing conditions and is expected in the second half.

During the development phase, Technip Energies will serve as lead developer and engineering service provider, while Airbus and Safran join as industrial partners, offtake facilitators and potential fuel offtakers. Meanwhile, Tereos plans to supply the required advanced ethanol.

"Sustainable Aviation Fuel is one of the most critical levers to decarbonise aviation, and the Alcohol-to-Jet pathway offers a credible, scalable route to get there. With Rebound, we are putting into practice our strategy to capture greater value through adjacent business models, originating and developing projects in fast-growing energy transition markets alongside recognised industry leaders such as Airbus, Safran and Tereos," Technip Energies Chief Strategy and Sustainability Officer Benjamin Lechuga said.

The project follows the implementation of the European Union's Refuel EU Aviation regulation, which dictates that sustainable aviation fuel blending mandates progressively increase to reach 6% by 2030 and 70% by 2050. The rule is expected to trigger an eightfold surge in demand over that period.

By Tuesday midday, shares of Technip Energies were trading marginally lower, while those of Airbus were marginally higher and Safran gained nearly 2%.

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