Shell (SHEL), Emirates Agree to SAF Supply at Dubai Airport
Shell plc’s (SHEL) aviation arm, Shell Aviation, entered into an agreement with Emirates, a global leader in air travel, for supplying more than 300,000 gallons of blended sustainable aviation fuel (SAF) to the airline's hub at Dubai International Airport (DXB).
SAF is a certified drop-in fuel that’s compatible with the existing aircraft fleets and airport infrastructure. It can be blended with conventional jet fuels at a ratio of up to 50%, significantly lowering lifecycle carbon emissions. In its neat form, SAF can even reduce emissions by up to 80% compared with conventional jet fuels, making it a pivotal tool in combating the environmental impact of air travel.
The SAF delivery, slated to commence before 2023-end, marks the first-ever delivery through the airport's fueling system to one of the world's busiest international airports. As part of this agreement, Emirates will employ the Avelia platform that leverages blockchain technology to track SAF deliveries and associated data. Developed with the support of Shell Aviation, Accenture and American Express Global Business Travel, Avelia ensures transparency in tracking the environmental attributes of SAF integrated into fueling networks.
Through this platform, Emirates will purchase the physical SAF and associated environmental attributes, focusing on decarbonizing its Scope 1-related emissions. Simultaneously, Shell Corporate Travel will acquire the Scope 3 environmental attributes associated with the same physical SAF to reduce its related business travel emissions.
In a media release by Emirates, the company acknowledged the scarcity of SAF production facilities in the UAE. The Emirates-Shell partnership aspires to pave the way for a future where SAF becomes a readily available, mainstream option for airlines. With a collective industry target of achieving net-zero emissions by 2050, the aviation sector is inching toward a greener future.
Zacks Rank & Key Picks
Shell is a group of U.S. and Europe-based big energy multinationals with operations across the world. Currently, it carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy sector are Matador Resources Company MTDR and Pioneer Natural Resources Company PXD, each currently sporting a Zacks Rank #1 (Strong Buy), and Core Laboratories Inc CLB, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed an upward earnings estimate revision for 2024 over the past 30 days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Pioneer's total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Core Laboratories’ strong presence in the emerging shale plays and its global footprint will provide for steady growth rates going forward. CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from the new and existing fields. It has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Core Laboratories Inc. (CLB) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
