Commercial, Sourcing Renewables - November 3, 2023
Southwest Airlines Purchases SAF
Southwest Airlines Co. announced an offtake agreement for up to 680 million gallons of neat sustainable aviation fuel (SAF).
The 20-year agreement was signed with USA BioEnergy, LLC. Once the SAF is blended with conventional jet fuel, it could produce the equivalent of 2.59 billion gallons of net-zero fuel and avoid 30 million metric tons of CO2.
Southwest plans to begin purchasing SAF from USA BioEnergy's facility near Bon Wier, Texas, as soon as 2028. Additionally, as part of the offtake agreement, Southwest and USA BioEnergy have established a long-term strategic relationship offering Southwest the opportunity to purchase up to another projected 180 million gallons of SAF per year from future planned production facilities.
"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, in a statement. "We look forward to the opportunity to grow our strategic relationship with USA BioEnergy and potentially purchase more SAF from them in the future."
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