Lufthansa Group [LHA:GR] has reached a procurement contract with Airbus [AIR:FP] on the pre-purchase of 40,000 tons of carbon removal credits, as reported by ESG Today on December 7. The certificates will be delivered to Lufthansa over a four-year period from 2026. These carbon removal credits will be issued by Airbus through its Airbus Carbon Capture Offer (ACCO) service, which is based on a technology called Direct Air Carbon Capture and Storage (DACCS). According to Lufthansa, carbon removal solutions will serve as “a complementary instrument in its sustainability strategy.” In addition, the Germany airline underscores the potential of direct air carbon capture (DAC) in contributing to the development of sustainable aviation fuel (SAF).

Last year, Airbus signed an agreement with 1PointFive, a carbon-removal specialist and subsidiary of Occidental’s [OXY:US] Low Carbon Ventures business. As part of the deal, Airbus pre-purchased 400,000 tons of carbon removal credits from 1PointFive’s first DAC facility. The facility will extract atmospheric carbon dioxide (CO2) and permanently store it deep underground in geologic formations, delivering permanent and verifiable carbon dioxide removal. DAC is increasingly recognized as a practical option for airlines seeking to mitigate their carbon footprints. In October 2023, easyJet [EZJ:LN] also joined Airbus’ ACCO initiative to prepurchase carbon removal credits. Many leading aviation firms, including Air Canada [AC:CN], International Airlines Group [IAG:LN], and Air France-KLM [AF:FP], have also signed Letters of Intent (LoI) with Airbus to explore opportunities for a future supply of carbon removal credits from DAC technology.

Sources:

https://www.esgtoday.com/lufthansa-joins-airbus-carbon-removal-program-with-40000-ton-carbon-credit-purchase/

https://newsroom.lufthansagroup.com/en/Lufthansa-Group-joins-Airbus/#

easyJet, Airbus Sign Deal to Offset Flight Emissions with DAC Carbon Capture Technology

https://www.airbus.com/en/newsroom/press-releases/2022-07-airbus-air-canada-air-france-klm-easyjet-international-airlines