Loganair signs 15-year SAF offtake deal with ClimaHtech Green Flight

Loganair on May 26 signed a 15-year sustainable aviation fuel offtake agreement with ClimaHtech Green Flight, giving the UK regional carrier a long-term supply line as it tries to cut emissions across its Scottish Highlands, Islands and Northern Ireland network.

The deal stands out because it is a forward supply commitment rather than a short-term green premium purchase or a one-off pilot. Loganair said the structure is intended to support decarbonisation across more than 60 routes with 36 aircraft and more than 850 employees, while also reinforcing UK supply chains. Other recent coverage has put the airline’s fleet at 35 aircraft and its network at around 40 destinations, a reminder of how central the carrier is to regional connectivity.

ClimaHtech Green Flight, a subsidiary of Belfast-based CATAGEN, said the agreement will support development of SAF through both BioSAF and eSAF pathways. The company says its model uses patented modular reactor technology, renewable electricity and sustainable biomass in a decentralised production set-up that can be connected to intermittent power assets or deployed near airports and other demand centres. CATAGEN launched ClimaHtech Green Flight in September 2025 at its Titanic Quarter campus.

The commercial terms were not disclosed, including volume and price, which leaves the transaction short on near-term delivery detail. Even so, the 15-year tenor matters more than another airline sustainability pledge, because long-dated offtake is one of the few tools that can help de-risk first-of-a-kind SAF capacity and make project finance viable. One industry report said Loganair is aiming to secure BioSAF and eSAF volumes by 2029, suggesting the agreement is aimed as much at future production readiness as immediate fuel supply.

The timing also aligns with the UK policy framework. The UK SAF Mandate started in 2025 at 2% of total UK jet fuel demand, rises linearly to 10% in 2030 and reaches 22% in 2040. The UK government says the mandate is meant to stimulate demand and unlock investment in SAF supply, while it is also developing a SAF Revenue Certainty Mechanism built around private law contracts with a government-backed counterparty to support production. For Loganair, the bet is that stable procurement can help bridge the gap between policy ambition and physically available fuel, especially for smaller regional operators that cannot absorb supply disruption as easily as global hub carriers.