The pilot phase of the programme aims to demonstrate the credibility of the book-and-claim model, using blockchain technology to ensure secured allocation of SAF’s environmental attributes to companies and airlines after the fuel has been delivered into the fuel network. With Avelia, airlines and business customers could simultaneously reduce emissions in their respective scopes, while ensuring transparency and accountability by avoiding issues such as double-counting.

Developed by Shell and Accenture, with the support of the Energy Web Foundation (EWF), Avelia includes Amex GBT’s world-leading travel management services to aggregate global business demand for SAF, which will increase SAF supply and use and help accelerate the aviation industry’s pathway towards net-zero emissions.

Jan Toschka, President, Shell Aviation said: “SAF is a key enabler of decarbonisation in the aviation industry, and it’s available today. However, it’s currently scarce and costs more than conventional jet fuel. Avelia will help trigger demand for SAF at scale, providing confidence to suppliers like us to further increase investment in production, and in turn helping to lower the price point for these fuels.”

Paul Abbott, CEO, Amex GBT said: “A truly viable route to decarbonising air travel is now open for business. We’re calling on all companies to join us and share the costs and benefits of SAF across the travel and aviation sectors. Airlines will gain access to the buying capacity of businesses, drawing from Amex GBT’s 19,000 customers around the world.”

Rachel Barton, Europe Strategy Lead, Accenture, said: “We believe every business should be a sustainable business and that sustainability will serve as one of the most powerful forces for change. Our vision for the Avelia platform is to bring together airlines, corporates, cargo players, and SAF suppliers in a trusted ecosystem that no individual company could build or access on its own. Blockchain technology will be piloted to help ensure trust via data integrity, validate proof of ownership, and enable transparent tracking of the environmental benefits of SAF for customers.”

Shell, Accenture, and Amex GBT are the platform’s first customers, and are pleased to welcome new corporations to Avelia to purchase the environmental attributes of SAF to drive industry change. Shell has committed to purchasing the environmental attributes equivalent to 100,000 gallons of SAF over the pilot phase of the Avelia programme. Shell will increase this commitment as soon as more SAF is available, to achieve its ambition to abate 45% of Shell’s corporate travel emissions through SAF by 2030.

Scalable co-investment models, which allow companies to co-fund the cost of SAF, are crucial to significantly scale SAF supply and use. An industry-accepted carbon accounting mechanism, like book-and-claim, is key for such programmes to credibly grow. Avelia’s data security and credibility are key to reaching scientific and market consensus for ways to allocate SAF’s environmental attributes and help accelerate the decarbonisation of aviation.

Additional third-party quotes

Jesse Morris, CEO, Energy Web: “Energy Web is extremely proud to support Avelia, one of the world's first blockchain platforms for SAF. We are confident Avelia will provide credible and verifiable information about SAF by leveraging the power of blockchain and decentralized tech, which will help grow business demand and decarbonize the aviation industry.”

Lauren Uppink Calderwood, Head of Aviation, Travel and Tourism, World Economic Forum: "Through the concerted effort of ambitious leaders in government and industry, we can accelerate the path to net-zero aviation by scaling the supply and use of SAF. We commend this programme’s participants for spearheading and testing an innovative model to help corporates manage and account for the mitigation of their aviation-related emissions and look forward to integrating learnings from these efforts into our broader SAFc Framework programme. Sharing the price premium of SAF offers exciting potential to address the aviation industry’s supply-and-demand impasse over scaling SAF."

Elena Schmidt, Executive Director, Roundtable on Sustainable Biomaterials (RSB): “Book-and-Claim has the potential to significantly increase the market access to SAF and, in turn, support aviation decarbonisation efforts – as it allows airlines and their customers to invest in SAF and purchase its environmental claims without needing to be tied to a production site. As long as the value chain is based on a robust system, such as the one developed by the RSB in collaboration with our multi-stakeholder community, the net environmental effect of SAF will be ensured. RSB supports innovative and collaborative partnerships that build a more sustainable environment and bio-based circular economy, and so applauds this new programme. We are delighted to welcome long-time RSB member Shell, American Express Global Business Travel and partners in the RSB Book-and-Claim development.”

Elisabeth Brinton, Corporate Vice President, Sustainability, Microsoft: “Decarbonising hard to abate sectors like aviation will be essential to reaching a net-zero future, and technology has a critical role to play in this transformation. We’re proud to support Shell in this effort with Avelia running on Azure to expand the market for sustainable aviation fuel”.

Avelia

Notes to editors

  • Intended to complement and work alongside airlines’ current corporate SAF programmes, Avelia aims to share the costs and benefits of SAF across the sector. Airlines will gain access to the buying capacity of businesses willing to share SAF's ongoing price premium – drawing from Amex GBT’s 19,000 customers from 140 countries, including thousands of small to medium sized businesses and 40 of the top 100 companies by travel spend – and corporates looking to reduce emissions from their business travel will have access to SAF.
  • *Sustainable aviation fuel can be made from plant or animal material. Research and development is also underway to find ways to produce industrial quantities of SAF synthetically, using hydrogen obtained from low-emission sources and carbon dioxide captured from other industrial processes or the air.
    • SAF offers significant potential for decarbonisation without the need to modify existing infrastructure - when used neat it can reduce lifecycle emissions by up to 80% compared to conventional jet fuel.2
    • Currently SAF is 2 to 8 times more expensive than jet fuel. With fuel accounting for a significant share of airline costs and in the low margin environment, airlines struggle to absorb the extra cost of decarbonisation.
  • Business travel is uniquely positioned to play a key role in creating a stronger demand and helping de-risk investment in production and new SAF technologies. Business travel forms a more concentrated segment than leisure passengers3 and the average corporate travel booking produces 4.3 times more revenue than a typical leisure booking.4
  • **Book-and-claim allows travelers to pay for SAF, and claim the benefits, even if SAF is not available at their departure airport. SAF will instead be fed into another aircraft in an airport where available.
    • Once book-and-claim is approved by industry bodies as an acceptable form of emissions reduction, Avelia could enable airlines and companies who choose SAF to authenticate, record and report the associated emissions reduction benefits of SAF towards their voluntary ESG reporting, regardless of where in the world the SAF is used to fuel a flight.
    • Avelia uses a blockchain-powered book-and-claim method that follows the Smart Freight Centre and MIT’s Center for Transportation & Logistics SAF Guidelines.5

Discover more about Avelia at: https://aveliasolutions.com/

About Shell

Shell plc is incorporated in England and Wales‚ has its headquarters in London and is listed on the London‚ Amsterdam‚ and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing‚ marketing and shipping of oil products and chemicals and renewable energy projects. For further information‚ visit www.shell.com. The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this document “Shell” is sometimes used for convenience where references are made to Shell plc and its subsidiaries in general.

Cautionary note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This press release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2021 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, June 20, 2022. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

Shell’s net carbon footprint

Also, in this press release we may refer to Shell’s “Net Carbon Footprint” or “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” or “Net Carbon Intensity” are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Footprint (NCF) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCF target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward Looking Non-GAAP measures

This press release may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those Non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

 The contents of websites referred to in this press release do not form part of this press release.

We may have used certain terms, such as resources, in this press release that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website. https://www.sec.gov/

1The number of one-way individual business traveller flights has been calculated based on the following assumptions; a carbon intensity of SAF of 22 gCO2e/MJ, a flight distance between London and New York of 5541km, and an emissions factor for a long-haul flight of 0.102 kgCO₂e/passenger-km based on UK DEFRA 2021 emissions factors for corporate reporting.

2IATA, Sustainable Aviation Fuels

3Shell, ‘Decarbonising Aviation: Cleared for Take-off’

4Oliver Wyman, ‘Airline Economic analysis 2020-2021

5Smart Freight Centre and MIT Center for Transportation & Logistics, The Sustainable Aviation Fuel (SAF) Greenhouse Gas Emission Accounting and Insetting Guidelines

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