Wizz Air Holdings PLC (AIM:WIZZ) has invested £5mln into bioenergy company Firefly, which will supply the airline with sustainable aviation fuel (SAF) made from sewage come 2028.
Firefly will supply 525,000 tonnes of the fuel over 15 years under the deal, Wizz said in a statement, potentially averting 1.5mln tonnes of CO2 from being emitted.
Produced from sewage sludge, Firefly’s fuel will be used to power Wizz Air’s growing fleet of A321neo aircraft, after it agreed to purchase 102 of the jets in November 2021.
Though Wizz Air may be hit by delays of these jets in the coming years, confirmed by Airbus Group (EPA:AIR) last week, once delivered each will already be able to run on a 50% SAF blend.
“SAF is crucial for reducing carbon emissions from aviation,” Wizz Air project head Michael Berlouis commented.
“Sewage sludge is available in vast quantities globally and […] we can put it to a truly beneficial use, reducing the use of fossil fuels in the hardest to decarbonise areas," Firefly Green Fuels chief executive James Hygate added.
A government mandate will require airlines to use at least 10% sustainable aviation fuels to power flights from 2030, ahead of a looming industry net zero target set for 2050.
British Airways joined industry members in calling for more government support to lower SAF prices last week though, arguing the UK risked losing a £10bn industry without urgent help.
Higher costs of SAF due to a lack of mass production could also prompt airlines to raise ticket prices in the future, the consortium warned.
“Feedstock availability remains the key challenge for the industry,” Berlouis agreed, suggesting Wizz’s deal with Firefly ensured costs could be kept lower.
Wizz rose 4% to 2,885p following the news.