BA owner to invest in firm planning to turn used tyres into jet fuel

British Airways’ parent company has announced an investment in a company planning to convert used tyres into jet fuel.

International Airlines Group (IAG) said its funding will enable Wastefront to begin construction on a £100 million factory producing sustainable aviation fuel (Saf) in Sunderland.

The plant is expected to begin operating in 2026 and will reach full capacity the following year.

It is expected to process up to 10 million waste tyres annually.

IAG said the UK generates about 50 million waste tyres each year, which are mostly sent to countries such as India where they are incinerated or buried in the ground.

Saf is seen as vital to reduce the aviation industry’s carbon emissions.

The fuel is made from sources such as agricultural waste and used cooking oil, meaning its production involves using about 70% less carbon than for conventional jet fuel, which is a type of kerosene.

It can be blended with kerosene at up to 50% without the need for aircraft engine modifications.

Saf is currently much more expensive to produce than standard jet fuel, but the price disparity is expected to narrow as Saf production increases.

The UK introduced a mandate on January 1 which requires flights from UK airports to use a minimum amount of Saf.

By law, Saf must make up at least 2% of all jet fuel used in flights in 2025.

The percentage will rise annually, reaching 10% in 2030 and 22% in 2040.

The Department for Transport has described the requirement – which applies to aviation fuel suppliers – as “ambitious but achievable”.

IAG cited figures from global airline body Iata which show achieving the 2030 target will require producing 1.2 million tonnes of Saf annually, which is almost 20 times the UK’s estimated production of 64,000 tonnes in 2023.

Jonathon Counsell, IAG’s group sustainability officer, said: “We’re proud to support innovators like Wastefront, who are finding new forms of feedstocks to produce advanced fuels.

“However, as global demand for sustainable aviation fuel grows, it’s crucial to expand production in the UK.

“The recent Government mandate will help reduce aviation’s overall carbon impact, but airlines need confidence that the planned revenue certainty mechanism will support UK businesses in developing Saf technology without further increasing the cost base for UK airlines.”

The Government has pledged to introduce a revenue certainty mechanism to reduce the financial risks for Saf producers, in an attempt to attract investment in new UK plants.

Vianney Vales, chief executive of Wastefront, said: “Our mission is to turn a problematic waste stream into a highly valuable resource.

“We can create Saf at an extremely competitive cost with a very low environmental footprint – capable of reducing carbon emissions in the production process by up to 80% compared to traditional jet fuels.”