Southwest Airlines has announced a significant offtake agreement with renewable fuel developer USA BioEnergy, marking another step towards the airline’s goal of reducing its carbon emissions. The agreement will see Southwest purchase up to 680 million gallons of sustainable aviation fuel (SAF) over 20 years, starting from 2028. The airline estimates that this move will help avoid 30 million tons of CO2 emissions over the life of the contract.
This is not the first time Southwest has made such a commitment. In recent years, the airline has entered into several SAF purchase agreements with providers such as Velocys, Neste, Marathon Petroleum, and Phillips 66. Furthermore, Southwest invested in SAFFiRE Renewables, a company focused on developing and commercializing technology for low-cost sustainable aviation fuel. These efforts are part of a larger project backed by the Department of Energy (DOE) to develop and produce scalable SAF.
Southwest has set an ambitious target of replacing 10% of its jet fuel consumption with SAF by 2030. Michael AuBuchon, Managing Director Fuel Strategy and Management at Southwest Airlines, stated that the agreement with USA BioEnergy is a significant step forward in achieving this goal. He also expressed the airline’s interest in expanding its strategic relationship with USA BioEnergy and potentially purchasing more SAF from them in the future.
USA BioEnergy, based in Arizona, specializes in converting sustainably sourced wood waste into renewable diesel, sustainable aviation fuel, and naphtha. The company claims that its renewable fuels can reduce emissions by 80% compared to traditional fossil fuels. Under the new agreement, USA BioEnergy will supply SAF to Southwest from its facility near Bon Wier, Texas. The companies have also announced a long-term strategic relationship, which could potentially lead to Southwest purchasing an additional projected 180 million gallons of SAF per year from future planned production facilities.
David Prom, Chairman of the Board and Co-Founder of USA BioEnergy, emphasized the alignment between Southwest’s goal of reaching net-zero carbon emissions by 2050 and USA BioEnergy’s objective of becoming a leading producer of carbon-negative fuel. He expressed excitement about working with Southwest on this initial project and the potential for future collaboration.
The aviation industry has been under increasing pressure to reduce its environmental impact, and sustainable aviation fuel is seen as a crucial solution. SAF is produced from renewable sources and has the potential to significantly reduce greenhouse gas emissions compared to conventional jet fuel. As airlines like Southwest commit to purchasing large quantities of SAF, it provides a boost to the development and production of these fuels, making them more economically viable and accessible.
Southwest Airlines’ offtake agreement with USA BioEnergy is a significant step towards achieving its sustainability goals. By purchasing a substantial amount of sustainable aviation fuel, the airline is taking concrete action to reduce its carbon footprint. This move not only benefits the environment but also contributes to the growth and advancement of the renewable fuel industry. With the aviation sector’s increasing focus on sustainability, it is encouraging to see major players like Southwest Airlines leading the way in adopting cleaner fuel alternatives.
