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Södra Partners with KLM to Study Feasibility of Producing Biojet Fuel

KLM biofuel KLM's Biofuel Programme enables companies to ensure that sustainable biojet fuel is used for their air travel by paying a surcharge that covers the difference in price between sustainable biofuel and regular jet fuel.

May 15, 2018 - Södra has signed a letter of intent with KLM to conduct a joint feasibility study to examine the possibility of producing green jet fuel. In parallel, Södra will become the first company in Sweden to join KLM's Corporate Biofuel Programme, with the aim of supporting growth in demand for fossil-fuel-free alternatives in the aviation sector.

“Air travel accounts for some 2 percent of global CO2 emissions,” said Maria Baldin, Director of Communications and Sustainability at Södra. “We are now taking two key steps forward to create sustainable alternatives to fossil-based jet fuel. The current supply of biofuel is too low and this is something we want to change.”

KLM's Biofuel Programme enables companies to ensure that sustainable biojet fuel is used for their air travel by paying a surcharge that covers the difference in price between sustainable biofuel and regular jet fuel.

“Helping to reduce CO2 emissions is in line with our sustainability targets. Our goal is to be fossil-fuel free by 2030. We will now shoulder an even greater responsibility for our air travel,” Baldin added.

Henrik Brodin, Strategic Business Developer, Energy, at Södra, noted, “The greatest challenge is the absence of policy measures. Since production costs for biojet fuel are high compared with fossil fuels, there is very limited scope for growth in demand, which is needed to reduce costs. There must be a clear political strategy to address this issue.”

The collaboration contains a feasibility study to examine the prerequisites for producing biojet fuel from forest biomass. While Södra and KLM are the main partners in the collaboration, many other players are also participating.

“It's about working together to examine the entire chain — from production to combustion — and creating a business model that enables a change in air travel,” Brodin said.

Södra, with headquarters in Vaxjo, Sweden, produces market pulp, wood products and biofuels. The company operates three pulp mills in Sweden (Mörrum, Mönsterås and Värö.) with a total capacity of 1.6 million tonnes per year. Sodra produces both softwood and hardwood pulp — 90% softwood and 10% hardwood. To learn more, please visit: www.sodra.com.

SOURCE: Södra