Newly-established Saudi Arabian lessor AviLease has reached a provisional agreement for production and distribution of sustainable fuel in the kingdom.
AviLease emerged in the middle of last year, part of a Saudi government initiative to broaden its air transport reach.
The lessor says it has signed a memorandum of understanding with Saudi Investment Recycling Company to provide sustainable aviation fuel to its network.
This agreement will “advance the production and uptake” of sustainable fuel and meet “comprehensive” targets on economic diversification, it adds.
AviLease will commit to an offtake agreement and market sustainable aviation fuel contracts to its airline customer base.
The recycling company will act as financier and facilitator, it adds, gathering expertise in production technology and distribution capabilities.
“We will be able to bundle the supply of [sustainable fuel] into our offerings, which we believe will trigger large-scale production of [such fuel] in a country that has the natural competitive advantages to become a low-cost producer and has already made clear commitments towards energy transition,” says AviLease chief Edward O’Byrne.
According to the head of Saudi Investment Recycling Company, Ziyad Mohammed Al Shiha, the lessor will provide “direct access” to the airline industry and enable the company to “tap into the enormous potential” of sustainable fuel.