German airline Lufthansa Group and leading European energy company Varo Energy have signed a sustainable aviation fuel (SAF) production and supply agreement.

The agreement would involve VARO supplying the Lufthansa Group with large volumes of SAF from as early as 2026, for example, to the Munich airport hub, Lufthansa said on 2 February.

In addition, the companies would also be looking into the development of processes to produce green hydrogen – which is used in SAF production – from biogenic waste materials, the airline said.

Lufthansa said the agreement was part of the group’s goal of driving forward the availability and use of SAF as a core element of its sustainability strategy. The group has set a target of achieving a neutral CO₂ balance by 2050.

From 2026, VARO aims to produce around 260,000 tonnes/year of SAF.