British Airways has inked a multi-year deal with Hong Kong-based EcoCeres to supply sustainable aviation fuel (SAF) made from waste like used cooking oil, slashing lifecycle carbon emissions by 400000 metric tonnes. This reduction, equivalent to 240000 London–New York roundtrip economy flights, supports the airline’s goal to power 10% of flights with SAF by 2030. With aviation contributing 2% of global emissions, or 700 MtCO2e yearly, this move could inspire a $10 billion SAF market shift. Can British Airways’ push make aviation greener, or will SAF supply constraints ground its ambitions?

The EcoCeres Partnership

Announced June 30, 2025, the deal sees EcoCeres supplying SAF from its Jiangsu, China facility, using 100% waste-based biomass like used cooking oil. This SAF cuts emissions by up to 80% compared to kerosene-based jet fuel, saving 400000 tonnes of CO2e over the contract’s term, per EcoCeres. British Airways, part of International Airlines Group (IAG), aims to meet the UK’s SAF mandate of 10% by 2030, requiring 1.2 million tonnes annually. The airline used 2.7% SAF in 2024, reducing carbon intensity by 13% since 2019.

Read more: Singapore’s Draft Guidance Boosts Voluntary Carbon Credits

Why SAF Matters?

Aviation’s 700 MtCO2e annual emissions face pressure from EU and UK mandates, with the UK requiring 2% SAF in 2025, rising to 10% by 2030. SAF, blendable with existing infrastructure, offers up to 80% lifecycle emissions cuts without engine modifications. EcoCeres’ SAF, alongside IAG’s deals with Twelve (785000 tonnes of e-SAF) and Phillips 66 (100000 tonnes), secures a third of IAG’s 1 million tonne 2030 target. This deal alone offsets emissions equivalent to 5% of British Airways’ 2023 Scope 1 emissions, pushing the $5 billion global SAF market toward $50 billion by 2030.

How the Deal Works?

EcoCeres produces SAF from waste feedstocks, avoiding crop-based biofuels that compete with food. The fuel, processed in Jiangsu, integrates into Heathrow’s pipeline, enabling hundreds of flights to use SAF blends up to 50%, per current regulations. The 400000-tonne reduction, verified by lifecycle analysis, matches emissions from 240000 transatlantic passengers. British Airways’ $3.5 billion IAG-backed SAF investments, including Project Speedbird’s 230000-tonne annual reduction, complement this deal, boosting UK production to meet 20% of the 2030 mandate.

Challenges to Scaling SAF

Global SAF production, at 450 million liters in 2024, meets just 0.5% of aviation fuel demand, with costs 2–3 times higher than jet fuel at $2000 per tonne. EcoCeres’ reliance on used cooking oil faces supply limits, as 70% of global stocks are already tapped. Scaling to 1.2 million tonnes for the UK alone requires $2 billion in new plants, with only eight planned by 2028. Regulatory caps on blending and feedstock competition, plus $1 billion in annual subsidies needed, could slow adoption, risking 10% of British Airways’ 2030 goal.

Explore OneStop ESG Marketplace: Sustainable fuels

What’s Next for British Airways?

By 2028, British Airways plans to scale SAF to 5% of its fuel, supported by deals like Aemetis’ 78400-tonne supply for San Francisco flights. Project Speedbird, backed by £9 million from the UK’s Advanced Fuels Fund, aims to produce 102 million liters yearly by 2028. IAG’s $865 million SAF investments, covering LanzaJet and Velocys, could secure 50% of its 2030 target if production ramps up. Against 35.6 billion tonnes of global CO2e emissions, this deal cuts 0.001%, but could catalyze 5% of aviation’s decarbonization by 2030.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.