Turkish Airlines is to invest some $42 million in biodiesel firm DB Tarimsal Enerji, with the aim of addressing the carrier’s need for sustainable aviation fuel.
The airline has submitted a binding offer with the aim of holding a 40% shareholding in the agricultural energy specialist, which is based in Izmir.
It adds that the offer was accepted on 1 April and transaction documentation is being prepared.
The acquisition will be funded through a capital increase and share transfer, with the final amount based on net debt considerations.
“Funds obtained by the [energy firm] as a result of the capital increase will be used for the investments required for [sustainable fuel] production,” says the carrier.
Turkish Airlines says the investment is intended to “secure” the growing demand for fuel that contributes to the company’s sustainability targets.
The production facility for the fuel is expected to become operational in 2029 and generate about 100,000t of fuel per year.
Turkish Airlines plans a long-term off-take agreement for the fuel, and will participate in negotiations over the terms.
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