Global law firm Norton Rose Fulbright has advised airline Jet2 on fuel offtake aspects of its recently announced major investment into a new sustainable aviation fuel (SAF) production plant to be constructed in the North West of England – one of the first such deals in UK aviation.
The agreement will see Jet2 invest an equity stake in the plant and expect to receive more than 200 million litres of SAF over a 15-year period.
Herbert Smith Freehills advised Jet2 on the equity investment aspects of the transaction.
The Fulcrum NorthPoint facility, being developed by Fulcrum BioEnergy, is a waste-to-fuels plant which will be located at the Essar Stanlow Manufacturing Complex in Ellesmere Port, Cheshire. Production of SAF is expected to commence at the plant in 2027. When at full capacity 600,000 tonnes of non-recyclable household waste, which would otherwise have been destined for incineration or landfill, will be converted into around 100 million litres of SAF annually. The NorthPoint plant will use Fulcrum’s proven waste-to-fuel process and will directly benefit from the IP gained from operations of its pioneering first commercial scale waste-to-fuels facility, Sierra BioFuels, situated outside of Reno Nevada, in the United States.
The SAF to be supplied to Jet2 is expected to achieve net emissions reductions totalling around 400,000 tonnes of CO2 for Jet2 over the life of the agreement.
The strategic positioning of the plant means that SAF is expected to be delivered directly to Manchester Airport using the existing jet fuel pipework infrastructure, rather than having to rely on transporting the fuel by the road network.
Jet2 is committed to a comprehensive sustainability strategy that. is setting the company on a path to net zero by 2050ii, in line with Government targets, though the company aspires to bring this date forward.
Pledges in the strategy include the purchase of 98 firm ordered Airbus A320/A321 neo aircraft, which could eventually extend up to 146 aircraft, on top of other tangible actions, such as Jet2.com’s carbon offsetting scheme.
Steve Heapy, CEO of Jet2.com and Jet2holidays said at the time the deal was announced: “This significant investment into Fulcrum NorthPoint’s Sustainable Aviation Fuel production in the UK shows not only how seriously we take that responsibility, but also how committed we are to taking tangible actions to address it. Not only will this action help to lower our climate impacts, but it represents a major step forward in our transition to net zero too. Whether investing in SAF, spending billions on our aircraft fleet, or placing a price on every tonne of carbon we emit, we are putting sustainable travel at the heart of our business. By doing this, our customers know they are travelling with an airline and holiday company that takes its environmental impact seriously and takes substantial action to address it too.”
He added: “This type of investment is critical if we are to get this technology up to the scale required to decarbonise the industry. Our investment is a very clear demonstration that we are backing SAF and the UK production of SAF early. We are calling on the UK government to scale up its level of ambition and support for SAF production too. Doing this will help achieve decarbonisation of the aviation sector, stimulate uptake and seize the enormous economic opportunity here in the UK.”
Jeff Ovens, managing director at Fulcrum BioEnergy UK, said: “This strategic, project level investment by Jet2 plc demonstrates clear commitment to the development of a UK SAF industry and further underpins Fulcrum’s leading position in the global waste-to-SAF industry. Fulcrum values this new partnership with Jet2, and we look forward to working together to successfully develop Fulcrum NorthPoint and bring low carbon jet fuel to Jet2’s increasingly fuel-efficient aircraft fleet.”
“Sustainable aviation fuel is arguably the most critical element of the aviation industry’s energy transition efforts and this transaction represents a very meaningful contribution, not just towards Jet2’s own efforts to mitigate its climate impact but also the development of the UK’s sustainable aviation fuel industry,” says Norton Rose Fulbright partner Andrew Williams, who advised Jet2.
Norton Rose Fulbright was named the ‘Most Sustainable Aviation Law Firm’ by Airline Economics at this year’s Sustainability Awards for its active role in supporting the development of sustainable finance policies for aviation and its work for clients on sustainability-linked financing deals.