Southwest Signs 20-Year Sustainable Aviation Fuel Deal

Southwest Airlines has entered into a landmark 20-year agreement to purchase sustainable aviation fuel (SAF) from USA BioEnergy, underscoring its commitment to decarbonizing air travel. The deal will provide a long-term supply of low-carbon fuel produced at USA BioEnergy’s new facility, which is designed to process one million tons of biomass annually.

USA BioEnergy is partnering with Honeywell and Johnson Matthey to deploy advanced Fischer–Tropsch technologies at the plant. This process converts renewable feedstocks into high-quality SAF that can be blended seamlessly with conventional jet fuel, reducing lifecycle greenhouse gas emissions compared to fossil-based alternatives.

The offtake agreement with Southwest is one of the largest of its kind and highlights how airlines are locking in future supplies of sustainable fuel to meet ambitious net-zero targets. SAF is widely viewed as a key near-term solution for cutting aviation’s carbon footprint while next-generation propulsion technologies continue to mature.

Southwest says the long-term partnership will help it achieve its goal of reducing carbon emissions intensity and accelerating the adoption of cleaner fuels across its network. By securing a stable supply of SAF, the airline also gains a hedge against future fuel price volatility and regulatory pressures.

For USA BioEnergy, the deal signals confidence from a major carrier in its production model and technology partners. The company says the project will also create jobs, spur local investment and support broader efforts to scale up sustainable fuel production for the aviation industry worldwide.

Sources: AirGuide Business airguide.info, bing.com