June 09, 2026 [Reuters]- France’s ​Technip Energies, Safran, Airbus and Tereos have agreed to ‌form a joint venture to develop a large-scale sustainable aviation fuel production project at the Port of Dunkirk in France, they said on ​Tuesday.

With jet fuel availability dwindling due to the Iran ​war and a blockade of the Strait of Hormuz, ⁠a key shipping lane linking the Gulf to global markets, ​European countries are scrambling to find alternative supplies and keep planes ​flying.

• The project is expected to produce roughly 160,000 metric tons of fuel per year converting ethanol from agricultural and forestry residues, the companies ​said in a joint statement
• Oil services firm Technip Energies will ​lead the development phase, while French agricultural cooperative Tereos will supply and ‌source ⁠ethanol
• Plane maker Airbus and engine maker Safran will join as industrial partners and potential offtakers
• The four groups aim to finalise the joint venture in the second half of 2026
• The aviation ​industry, one of ​the biggest ⁠emitters of greenhouse gases, has been trying to reduce its carbon footprint but environmental groups ​argue SAF adoption has so far failed to ​move ⁠the needle
• Airlines say Europe’s green jet fuel mandates are too strict, while supply on the market is insufficient and prices too high ⁠to ​absorb
• A Reuters investigation last year showed that only ​about a fifth of SAF projects unveiled by airlines globally have materialised