TotalEnergies' Strategic Partnerships and Feedstock Security: A Blueprint for Sustainable Aviation Fuel Dominance

The aviation industry's race to decarbonize has thrust sustainable aviation fuel (SAF) into the spotlight, and TotalEnergies is positioning itself as a leader in this transition. By securing strategic partnerships and diversifying its feedstock supply, the company is building a scalable and secure foundation to capitalize on soaring demand for low-carbon fuels. This article explores how TotalEnergies' recent moves—particularly its focus on feedstock security and production capacity expansions—could drive long-term growth, making it a compelling investment in the energy transition.

Strategic Partnerships: Building the SAF Ecosystem

TotalEnergies has woven a network of partnerships that span research, production, and distribution. Its collaboration with Safran, a major aerospace supplier, began in 2021 and has already yielded breakthroughs, such as a SAF-blend flight in a military helicopter in 2023. The partnership with Airbus, announced in 2024, is even more significant: it aims to supply over half of Airbus's European SAF needs and co-develop next-generation fuels compatible with 100% SAF use.

These alliances are not just about R&D—they're about scaling production. In France, the Grandpuits biorefinery, a €500 million project, will produce 230,000 tons of SAF annually by 2026. Meanwhile, the La Mède biorefinery has already begun blending SAF into jet fuel for southern French airports.

Feedstock Security: The Key to Scalability

The aviation sector's shift to SAF hinges on one critical factor: access to reliable, low-carbon feedstocks. TotalEnergies has addressed this head-on through long-term agreements. In June 2025, it signed a 15-year deal with Quatra, a European leader in used cooking oil (UCO) collection, securing 60,000 tons of UCO annually starting in 2026. UCO-based fuels reduce lifecycle emissions by 70–80% compared to fossil fuels and offer a steady, non-food-based feedstock.

The company also partners with SARIA, which supplies organic waste from agriculture and households to Grandpuits. By diversifying its feedstock sources—UCO, agricultural waste, and other non-food biomass—TotalEnergies mitigates supply risks and ensures its fuels meet stringent EU sustainability criteria.

Regulatory Tailwinds: The EU's Role in Fueling Growth

The EU's ReFuelEU mandate requires airlines to blend 2% SAF by 2025, rising to 6% by 2030. TotalEnergies is not just meeting these targets—it's exceeding them. By 2028, the company aims to supply over 500,000 tons/year of SAF, enabling it to deliver 10% SAF in jet fuel volumes in Europe by 2030—a full four years ahead of regulatory requirements.

This proactive stance positions TotalEnergies as a supplier of choice for airlines like Air France-KLM, which signed a landmark 10-year deal for up to 1.5 million tons of SAF. Such agreements lock in demand, stabilizing revenue streams and reducing financial risk.

Financial Resilience and Risk Mitigation

TotalEnergies' $6.5 billion annual renewables budget (including biorefineries) underscores its commitment to the transition. Its refinery upgrades—such as coprocessing SAF at Antwerp and Leuna—are cost-effective, leveraging existing infrastructure. Long-term feedstock and offtake agreements further insulate the company from commodity price volatility.

Investment Thesis: A Leader in the Aviation Transition

The data tells a compelling story. Over the past three years, TotalEnergies' stock has outperformed peers like BP and Shell, reflecting investor confidence in its green strategy.

Why invest now?
1. Scalability: TotalEnergies' production capacity is set to grow from ~250,000 tons/year in 2025 to over 500,000 tons/year by 2028—a 100% increase in just three years.
2. Feedstock Security: Its partnerships ensure a stable, low-carbon supply chain, critical as SAF demand surges.
3. Regulatory Tailwinds: The EU's mandates create a guaranteed market, while TotalEnergies' overperformance positions it to capture premium pricing.

Conclusion: A Bridge to Net-Zero Aviation

TotalEnergies has masterfully combined strategic partnerships, feedstock diversification, and regulatory foresight to build a dominant position in SAF. Its ability to scale production while securing supply lines makes it a standout play in the energy transition. Investors seeking exposure to decarbonization should take note: TotalEnergies is not just adapting to the future—it's designing it.

Investment recommendation: Consider adding TotalEnergies to a portfolio focused on sustainable energy growth, with a long-term horizon.