Carrier builds long-term strategic relationship with SAF manufacturer
Southwest Airlines Co. (“Southwest”) has announced an offtake agreement with USA BioEnergy, LLC (“USA BioEnergy”), for up to 680 million gallons of pure sustainable aviation fuel (SAF). Over the life of the 20-year agreement, once blended with conventional jet fuel, the SAF could produce the equivalent of 2.59 billion liters of net-zero fuel and avoid 30 million tonnes of CO.2. Southwest® plans to begin purchasing SAF from USA BioEnergy’s facility near Bon Wier, Texas, as early as 2028. Additionally, as part of the offtake agreement, Southwest and USA BioEnergy have established a long-term strategic relationship that will provide Southwest with the opportunity to produce an additional projected 180 million gallons of SAF per year from future planned production facilities.
“This offtake agreement with USA BioEnergy marks significant progress in the development of our SAF portfolio and advances our goal of replacing 10 percent of our total jet fuel consumption with SAF by 2030,” said Michael AuBuchon, Managing Director of Fuel Strategy and Management at Southwest Airlines. “We look forward to the opportunity to expand our strategic relationship with USA BioEnergy and potentially purchase more SAF from them in the future.”
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“Our agreement with Southwest Airlines is a perfect fit because it aligns Southwest’s goal of achieving net-zero carbon emissions by 2050 with USA BioEnergy’s goal to become 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 first project and potentially future sites we may add to our pipeline.”
Southwest recognizes the critical role that commercially viable SAF will play in the airline’s strategy to achieve its short- and long-term carbon targets and is taking action to build relationships across the aviation value chain to proactively address the challenges path to address this goal of net-zero carbon emissions by 2050.