What? In February 2024, International Airlines Group (IAG) announced its largest SAF purchase agreements with Twelve, a Power-to-Liquid SAF producer and one of the winners of the World Economic Forum’s UpLink Sustainable Aviation Challenge. Both parties agreed on a 14-year contract during which IAG will be supplied with 785,000 tonnes of e-SAF. How? The collaboration between IAG and Twelve began in 2020, when Twelve joined IAG’s Hangar 51 start-up accelerator programme to bring its innovative technology to market. Since then, the following four factors have accelerated the signing of their most recent offtake agreement: 1 Technological rigour: Twelve delivered e-SAF to the US Air Force, which conducted significant testing to demonstrate the technology. IAG undertook a range of site visits to Twelve’s labs, testing and production facilities. 2 Financial backing: Twelve had secured $130 million Series B funding and received conditional funding (pending offtake agreement) of up to $645 million by TPG Rise Capital.3 Commercial traction: Twelve had secured partnerships with Alaska Airlines for scope 1 and Shopify and Microsoft for scope 3 credits. 4 Strategic alignment: IAG and Twelve worked closely together on product development (including lifecycle assessments), ensuring the SAF from Twelve fits within IAG‘s broader decarbonization plans. Impact: The duration, volumes and structure of the offtake agreement significantly improved the overall bankability of Twelve’s projects. As a result of this, Twelve managed to unlock up to $645 million in funding, of which the majority ($400 million) was in project equity led by TPG Rise Climate and $200 million was in Series C financing. In addition, Fundamental Renewables, a clean energy investment firm, issued a $25 million construction loan, while Sumitomo Mitsui Banking Corporation, a multinational bank, provided a $20 million green loan. All these investments combined mark one of the largest financing rounds to date in the PtL fuel space.CASE STUDY 6 IAG off-take agreement with Twelve Engage in book-and-claim to facilitate investments Lever 6 Funding Source Public funding Industry funding Institutional funding Pathways (relevance of guideline by pathway, low = nice to have vs. high = must have) HEFA Alcohol-to-Jet G-FT Power-to-Liquid High High High High Lifecycle (relevance of guideline by pathway, low = rarely applicable vs. high = very common) Pre-feasibility Feasibility + FEED FID Construction Commissioning Low Low High Medium Medium Another promising way to procure SAF and allow the cost of scaling-up SAF to be shared across a wider stakeholder group is through buying SAF credits transferred through a book-and-claim registry. A book-and-claim system allows buyers in one part of the world to pay for the green premium and receive the associated credit of using SAF, even though the physical SAF is used in another location. Unlike carbon offsets, which compensate for emissions already released through investing in out-of-sector projects, such as afforestation, the procurement of SAF using book-and-claim is a “carbon inset”, meaning that companies can invest in a project that reduces the carbon emissions of the aviation sector directly. Book-and-claim tools can facilitate this process. Financing Sustainable Aviation Fuels 29

Financing Sustainable Aviation Fuels 2025