Etihad Partners With Mubadala's Cepsa On Sustainable Aviation Fuel, Lower Carbon Footprint

Etihad Airways, one of the two flag carriers of the United Arab Emirates, has signed a memorandum of understanding (MoU) with Cepsa, a Mubadala group company to accelerate decarbonization efforts in the air transport sector.

The new partnership was announced at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), hosted by Abu Dhabi National Oil Company, popularly known as ADNOC.

According to a press statement, Etihad will work with Cepsa to develop sustainable aviation fuel (SAF), to further reduce the carbon footprint of air transport, and achieve the goals of the United Nation's 2030 agenda for Sustainable Development and the fight against climate change.

"Aviation decarbonization is the biggest challenge facing our industry and the development of commercially viable sustainable aviation fuel is a key requirement to meet the industry sustainability target," said Adam Boukadida, Chief Financial Officer at Etihad Aviation Group.

Aimed at reducing aircraft carbon emissions by 80%, the companies eye producing sustainable fuel from circular raw materials that do not compete with food resources, such as used cooking oils, non-food animal waste or biodegradable waste from various industries.

The press statement further noted that Etihad and Cepsa will also work together to develop sustainable energy alternatives, which include hydrogen, and will also work on the electrification of Etihad's ground fleets comprising of supply vehicles, baggage loading and unloading operations, and aircraft assistance.

Boukadida added: "Our MoU with Cepsa allows us to tackle the first challenge, building demand for SAF, which in turn encourages further production and increases availability to eventually lower costs and enable further SAF uptake from the wider industry. It's a snowball effect, which is essential if we're to overcome the main challenges standing in the way of a commercially viable solution."

Cepsa is one of the main producers and suppliers of aviation fuels in the Spanish market and its new agreement with Etihad is expected to turn it into a leader in the clean energy sector and spearhead the decarbonization of air transport.

Maarten Wetselaar, CEO of Cepsa, said that the partnership with Etihad will "reinforce our determination to transform air travel into a more sustainable mode of transport."

The statement added that Cepsa is aiming to produce 2.5 million tons of biofuel annually by 2030 with a particular focus to ensure the sustainability of air traffic by producing 800,000 tons of SAF every year.