Fueling the Future: How Airlines, SAF Producers, and Corporate Customers Can Collaborate Through Tripartite Offtake Agreements

In the global push to decarbonize aviation, one thing is becoming increasingly clear: no single stakeholder can do it alone.

By Ashwin Jadhav

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While airlines are under pressure to reduce their carbon footprint, Sustainable Aviation Fuel (SAF) producers need long-term demand signals to scale production, and corporate customers—many of whom rely on air travel to do business—are eager to support cleaner skies as part of their climate strategies.

This convergence has sparked a new wave of collaboration: tripartite SAF offtake agreements, where all three parties—airline, SAF producer, and corporate customer—work together to finance, produce, and claim the environmental benefits of SAF. And when done right, these agreements aren’t just symbolic—they’re bankable, scalable, and catalytic.

So, what does it take to make these partnerships work?

Why Tripartite Agreements?

Airlines have agreements with large oil & gas companies to purchase conventional JetA/A1 fuel at near-market rates that are very close to the fuel indices. Traditionally, SAF offtake agreements have been structured between producers and airlines, with airlines serving as the primary customer. But that model puts a lot of financial and operational pressure on the airline—especially given the high cost and low availability of SAF today.

Tripartite agreements shift that dynamic by bringing in a third player: the corporate customer. Often a large multinational with sustainability targets and travel-related Scope 3 emissions, the corporate buyer contributes to the SAF offtake financially or contractually in exchange for emissions reductions they can claim.

This benefits all parties:

• Airlines reduce emissions intensity without bearing full cost burden.

• SAF producers gain demand certainty and better creditworthiness to secure financing.

• Corporate customers meet climate goals through credible, sector-specific action.

  
  

The result? A win-win-win with real impact.

The Building Blocks of a Bankable Tripartite Agreement

So how do you move from a good idea to a signed, investable deal? It takes shared intent, aligned incentives, and some legal and commercial heavy lifting. The entire process of aligning on these elements often takes several months and only after that, the contracting process begins, which often takes between 6 to 18 months, depending on the complexity of the deal. 

1. Define Roles and Responsibilities

Each party needs clarity on their role:

• The SAF producer commits to delivering a specified volume of fuel meeting sustainability criteria.

• The airline agrees to use the SAF and physically blend it into operations.

• The corporate customer commits to purchasing the environmental attributes via a book-and-claim mechanism.

  
  

This structure should also define who owns the emissions reductions and how they’re reported.

2. Structure the Commercial Terms

A successful tripartite agreement must be bankable—that is, it needs to demonstrate sufficient commercial security for the SAF producer to raise financing (debt or equity) for production.

This often includes:

• A long-term offtake commitment (5–10 years)

• Indexed or escalating pricing mechanisms

• Clear payment flows from corporate buyer or airline

• Risk-sharing provisions (e.g., for feedstock cost volatility)

  
  

Sometimes the corporate buyer pays a premium to the airline, who in turn passes it through to the producer. In other cases, the corporate customer contracts directly for the certificates.

3. Ensure Robust Carbon Accounting

All three parties have a stake in carbon transparency. The contract must specify:

• How emissions reductions are calculated (e.g., lifecycle assessment method)

• Who claims them (typically the corporate customer under Scope 3)

• How double counting is avoided

• What third-party standards are used (e.g., RSB, ISCC, or upcoming ICAO guidance)

  
  

This ensures credibility with investors, auditors, and the public.

4. Embed Flexibility for Future Scale

The SAF market is evolving fast. A well-designed agreement anticipates:

• New regulatory incentives (e.g., tax credits, mandates)

• Potential resale or reallocation of certificates

• Expansion of SAF pathways or feedstocks

  
  

Contracts should be structured to adapt—not become obsolete.

Real-World Impact: More Than a Paper Deal

These agreements aren’t just theory. In 2024, we saw several major brands partner with airlines and SAF producers to fund SAF projects and secure carbon reductions for business travel. These tripartite deals helped unlock financing for new SAF capacity, send strong demand signals to producers, and allow corporate customers to lead on climate action. 

For SAF producers, these partnerships de-risk projects. For airlines, they create a competitive edge. For corporations, they offer credible, sector-specific decarbonization that goes beyond offsets.

Final Thoughts: Collaboration is the Catalyst

Tripartite SAF offtake agreements represent more than financial innovation—they’re a blueprint for how climate solutions can scale through collaboration. They reflect the new reality: decarbonization is not a solo effort. It’s a team sport.

If you’re a SAF producer seeking long-term offtake, an airline looking to share the cost of decarbonization, or a corporate customer ready to lead through climate action—this is your moment to co-create the future of flight.

Let’s build it together.