Airlines are not only looking for cleaner, sustainable fuel
to make an impact on the environment, but to make an impact on their bottom
line as well.
We have heard many carriers talk about the rising cost of
traditional jet fuel. Now, Southwest Airlines is making a bold move.
The Dallas-based airline has entered into an agreement with
USA BioEnergy, LLC, to purchase up to 680 million gallons of Sustainable
Aviation Fuel (SAF). The deal is said to be for 20 years and could begin as
early as 2028.
The agreement includes a provision in which Southwest Also
has the option to purchase 180 million more gallons of SAF.
“This offtake agreement with USA BioEnergy marks important
progress in the development of our SAF portfolio and furthers our goal to
replace 10 percent of our total jet fuel consumption with SAF by 2030,” said
Michael AuBuchon, Managing Director Fuel Strategy and Management at Southwest
Airlines. By definition, an offtake agreement is struck between two companies
before a production facility is even constructed.
"We look forward to the opportunity to grow our
strategic relationship with USA BioEnergy and potentially purchase more SAF
from them in the future,” AuBuchon continued.
"Our agreement with Southwest Airlines is a perfect fit
because it aligns Southwest's goal of reaching net zero carbon emissions by
2050 and USA BioEnergy's goal of becoming the leading producer of
carbon-negative fuel," said David Prom, Chairman of the Board, Co-Founder
of USA BioEnergy.
"USA BioEnergy is excited to work with Southwest on
this initial project and, potentially, future sites we may add in our pipeline,”
Prom continued.
Southwest said it is looking to forge relationships now to
achieve its sustainable fuel goals in the future. The airline announced a
program for sustainable
fuel two years ago.
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