TotalEnergies SE (NYSE:TTE) inked a deal to supply Air France-KLM with up to 1.5 million tons of sustainable aviation fuel (SAF) over the next 10 years, through 2035.
This is one of Air France-KLM's largest SAF agreements. This contract builds on a 2022 memorandum of understanding (MoU) for the supply of 800,000 tons of SAF.
By revisiting the agreement, both groups are reinforcing their commitment to reducing the environmental impact of air transport and lowering CO2 emissions as quickly as possible.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, "SAF contributes both to the energy transition of our customers in the aviation sector and to the industrial transition of our refineries. It therefore represents a real 'win-win' for the future of industry and aviation."
"Securing the volumes of more sustainable aviation fuel needed to decarbonize our activity is a major challenge. This agreement with TotalEnergies is a further step in this direction, and a testament to our long-standing support for the development of SAF production in France and Europe," said Benjamin Smith, Chief Executive Officer of Air France-KLM Group.
Notably, TotalEnergies has invested 340 million euros to convert its refinery into a biorefinery. In 2024, the company invested an additional 70 million euros to process up to 100% of waste from the circular economy, with plans to produce sustainable aviation fuel (SAF) by 2025.
Last week, TotalEnergies extended its sales and purchase agreement (SPA) with CNOOC by an additional five years.
Also, the company inked a 10-year deal with BOTAŞ to supply 1.1 million tons of LNG annually starting in 2027.
Apart from this, this month, the company formed a 50/50 joint venture with Adani Green for a 1,150 MW solar project in Gujarat, India. TotalEnergies will invest $444 million, boosting its renewable energy strategy.
Investors can gain exposure to the stock via Advisor Managed Portfolios Miller Value Partners Appreciation ETF (NYSE:MVPA) and Octane All-Cap Value Energy ETF (NASDAQ:OCTA).
Price Action: TTE shares closed lower by 0.07% at $69.09 on Friday.
